HB 1803

1	A bill to be entitled
2	An act relating to the taxation of alcoholic beverages;
3	amending s. 561.121, F.S.; deleting provisions providing
4	for certain annual distributions of funds for specified
5	purposes; deleting provisions crediting specified taxes on
6	alcoholic beverages to accounts funding substance abuse
7	programs for children and adolescents; deleting a
8	provision providing for payment and credit of alcoholic
9	beverage surcharge funds to the General Revenue Fund to
10	conform; terminating the Children and Adolescents
11	Substance Abuse Trust Fund within the Department of
12	Children and Family Services; providing for disposition of
13	balances in and revenues of such trust fund; amending s.
14	215.20, F.S.; conforming provisions to the repeal of the
15	trust fund; amending s. 561.501, F.S.; deleting a
16	provision imposing a surcharge on alcoholic beverages sold
17	for consumption on the premises; amending s. 561.025,
18	F.S., to conform; repealing 561.501, F.S., relating to the
19	collection of the alcoholic beverage surcharge; providing
20	effective dates.
21
22	Be It Enacted by the Legislature of the State of Florida:
23
24	Section 1.  Subsections (1) and (4) of section 561.121,
25	Florida Statutes, are amended to read:
26	561.121  Deposit of revenue.--
27	(1)  All state funds collected pursuant to ss. 563.05,
28	564.06, and 565.12 shall be paid into the State Treasury and
29	disbursed in the following manner:
30	(a)1.  Two percent of monthly collections of the excise
31	taxes on alcoholic beverages established in ss. 563.05, 564.06,
32	and 565.12 shall be deposited into the Alcoholic Beverage and
33	Tobacco Trust Fund to meet the division's appropriation for the
34	state fiscal year.
35	2.  Beginning July 1, 2004, there is annually distributed
36	$15 million to the Grants and Donations Trust Fund within the
37	Department of Elderly Affairs, and these funds are annually
38	appropriated to support a contract with the Johnnie B. Byrd,
39	Sr., Alzheimer's Center and Research Institute at the University
40	of South Florida for the purposes of conducting research,
41	developing and operating integrated data projects, and providing
42	assistance to memory disorder clinics as established in s.
43	430.502.
44	2.3.  Beginning July 1, 2004, there is annually distributed
45	$6 million to the Biomedical Research Trust Fund within the
46	Department of Health, and these funds are annually appropriated
47	to the James and Esther King Biomedical Research Program. From
48	these funds, up to $250,000 shall be available annually for the
49	operating costs of the Florida Center for Universal Research to
50	Eradicate Disease.
51	4.  Beginning July 1, 2004, there is annually distributed
52	$9 million to be paid by warrant drawn by the Chief Financial
53	Officer upon the State Treasury to Florida State University for
54	the School of Chiropractic Medicine. Notwithstanding the
55	provisions of chapter 216, until the School of Chiropractic
56	Medicine is completely staffed and fully operational, these
57	funds may be used for any purpose by the university.
58	(b)  The remainder of collection shall be credited to the
59	General Revenue Fund.
60	(4)(a)  State funds collected pursuant to s. 561.501 shall
61	be paid into the State Treasury and credited to the General
62	Revenue Fund. following accounts:
63	1.  Twenty-seven and two-tenths percent of the surcharge on
64	the sale of alcoholic beverages for consumption on premises
65	shall be transferred to the Children and Adolescents Substance
66	Abuse Trust Fund, which shall remain with the Department of
67	Children and Family Services for the purpose of funding programs
68	directed at reducing and eliminating substance abuse problems
69	among children and adolescents.
70	2.  The remainder of collections shall be credited to the
71	General Revenue Fund.
72	(b)  For the 2004-2005 state fiscal year only, and
73	notwithstanding the provisions of subparagraph (a)1., moneys in
74	the Children and Adolescents Substance Abuse Trust Fund may also
75	be used for the purpose of funding programs directed at reducing
76	and eliminating substance abuse problems among adults. This
77	paragraph expires July 1, 2005.
78	Section 2.  Effective July 1, 2006, subsection (4) of
79	section 561.121, Florida Statutes, as amended by this act, is
80	amended to read:
81	561.121  Deposit of revenue.--
82	(4)  State funds collected pursuant to s. 561.501 shall be
83	paid into the State Treasury and credited to the General Revenue
84	Fund.
85	Section 3.  (1)  The Children and Adolescents Substance
86	Abuse Trust Fund within the Department of Children and Family
87	Services is terminated. The current balance remaining in the
88	trust fund shall be transferred to the Operations and
89	Maintenance Trust Fund in the department.
90	(2)  The Department of Children and Family Services shall
91	pay any outstanding debts and obligations of the terminated fund
92	as soon as practicable, and the Chief Financial Officer shall
93	close out and remove the terminated fund from the various state
94	accounting systems using generally accepted accounting
95	principles concerning warrants outstanding, assets, and
96	liabilities.
97	Section 4.  Paragraph (e) of subsection (4) of section
98	215.20, Florida Statutes, is amended to read:
99	215.20  Certain income and certain trust funds to
100	contribute to the General Revenue Fund.--
101	(4)  The income of a revenue nature deposited in the
102	following described trust funds, by whatever name designated, is
103	that from which the appropriations authorized by subsection (3)
104	shall be made:
105	(e)  Within the Department of Children and Family Services:
106	1.  The Administrative Trust Fund.
107	2.  The Child Welfare Training Trust Fund.
108	3.  The Children and Adolescents Substance Abuse Trust
109	Fund.
110	3.4.  The Domestic Violence Trust Fund.
111	4.5.  The Grants and Donations Trust Fund.
112	5.6.  The Operations and Maintenance Trust Fund.
113
114	The enumeration of the foregoing moneys or trust funds shall not
115	prohibit the applicability thereto of s. 215.24 should the
116	Governor determine that for the reasons mentioned in s. 215.24
117	the money or trust funds should be exempt herefrom, as it is the
118	purpose of this law to exempt income from its force and effect
119	when, by the operation of this law, federal matching funds or
120	contributions or private grants to any trust fund would be lost
121	to the state.
122	Section 5.  Section 561.501, Florida Statutes, is amended
123	to read:
124	561.501  Surcharge on sale of alcoholic beverages for
125	consumption on the premises; penalty.--
126	(1)  Notwithstanding s. 561.50 or any other provision of
127	the Beverage Law, a surcharge of 3.34 cents is imposed upon each
128	ounce of liquor and each 4 ounces of wine, a surcharge of 2
129	cents is imposed on each 12 ounces of cider, and a surcharge of
130	1.34 cents is imposed on each 12 ounces of beer sold at retail
131	for consumption on premises licensed by the division as an
132	alcoholic beverage vendor. However, the surcharges imposed under
133	this subsection need not be paid upon such beverages when they
134	are sold by an organization that is licensed by the division
135	under s. 561.422 or s. 565.02(4) as an alcoholic beverage vendor
136	and that is determined by the Internal Revenue Service to be
137	currently exempt from federal income tax under s. 501(c)(3),
138	(4), (5), (6), (7), (8), or (19) of the Internal Revenue Code of
139	1986, as amended.
140	(1)(2)  The vendor shall report and remit payments to the
141	division each month by the 15th of the month following the month
142	in which the surcharges are imposed. For purposes of
143	compensating the retailer for the keeping of prescribed records
144	and the proper accounting and remitting of surcharges imposed
145	under this section, the retailer shall be allowed to deduct from
146	the payment due the state 1 percent of the amount of the
147	surcharge due. Retail records shall be kept on the quantities of
148	all liquor, wine, and beer purchased, inventories, and sales.
149	However, a collection allowance is not allowed on any
150	collections that are not timely remitted. If by the 20th of the
151	month following the month in which the surcharges are imposed,
152	reports and remittances are not made, the division shall assess
153	a late penalty in the amount of 10 percent of the amount due per
154	month for each 30 days, or fraction thereof, after the 20th of
155	the month, not to exceed a total penalty of 50 percent, in the
156	aggregate, of any unpaid surcharges. The division shall
157	establish, by rule, the required reporting, collection, and
158	accounting procedures. Records must be maintained for 3 years.
159	Failure to accurately and timely remit surcharges imposed under
160	this section is a violation of the Beverage Law.
161	(2)(3)(a)  The division may compromise a taxpayer's
162	liability for the surcharge imposed by this section upon the
163	grounds of doubt as to liability for or collectibility of such
164	tax. A taxpayer's liability for penalties as prescribed by this
165	section may be settled or compromised if the division finds that
166	the noncompliance is due to reasonable cause and not to willful
167	negligence, willful neglect, or fraud. The division shall
168	maintain records of all compromises, and the records must state
169	the basis for the compromise.
170	(b)  The division may enter into agreements for scheduling
171	payments of taxes, interest, and penalties prescribed in this
172	section.
173	(c)  The division shall establish by rule guidelines and
174	procedures for administering this section.
175	(3)(4)  If any vendor fails to remit the surcharge, or any
176	portion thereof, by the 20th of the month following the month in
177	which the surcharges are imposed, there shall be added to the
178	amount due interest at the rate of 1 percent per month of the
179	amount due from the date due until paid. Interest on the
180	delinquent tax shall be calculated beginning on the 21st day of
181	the month following the month for which the surcharge is due.
182	(4)(5)  All penalties and interest imposed by this section
183	are payable to and collectible by the division in the same
184	manner as if they were a part of the tax imposed. The division
185	may settle or compromise any such interest or penalty under
186	paragraph (2)(3)(a).
187	Section 6.  Effective July 1, 2006, section 561.501,
188	Florida Statutes, as amended by this act, is repealed.
189	Section 7.  Effective July 1, 2006, section 561.025,
190	Florida Statutes, is amended to read:
191	561.025  Alcoholic Beverage and Tobacco Trust Fund.--There
192	is created within the State Treasury the Alcoholic Beverage and
193	Tobacco Trust Fund. All funds collected by the division under
194	ss. 210.15, 210.40, or under s. 569.003 and the Beverage Law
195	with the exception of state funds collected pursuant to ss.
196	561.501, 563.05, 564.06, and 565.12 shall be deposited in the
197	State Treasury to the credit of the trust fund, notwithstanding
198	any other provision of law to the contrary. Moneys deposited to
199	the credit of the trust fund shall be used to operate the
200	division and to provide a proportionate share of the operation
201	of the office of the secretary and the Division of
202	Administration of the Department of Business and Professional
203	Regulation; except that:
204	(1)  The revenue transfer provisions of ss. 561.32 and
205	561.342(1) and (2) shall continue in full force and effect, and
206	the division shall cause such revenue to be returned to the
207	municipality or county in the manner provided for in s. 561.32
208	or s. 561.342(1) and (2); and
209	(2)  Ten percent of the revenues derived from retail
210	tobacco products dealer permit fees collected under s. 569.003
211	shall be transferred to the Department of Education to provide
212	for teacher training and for research and evaluation to reduce
213	and prevent the use of tobacco products by children.
214	Section 8.  Except as otherwise expressly provided in this
215	act, this act shall take effect July 1, 2005.

CODING: Words stricken are deletions; words underlined are additions.