HB 0205

CS

CHAMBER ACTION

1	The Finance & Tax Committee recommends the following:
2
3	Council/Committee Substitute
4	Remove the entire bill and insert:
5	A bill to be entitled
6	An act relating to contraband and counterfeit cigarettes;
7	providing additional regulatory and enforcement measures;
8	amending s. 210.01, F.S.; revising and providing
9	definitions; amending s. 210.06, F.S.; revising
10	requirements for and limitations on the affixation of
11	stamps; providing requirements with respect to receipt,
12	possession, storage, and transport of unstamped cigarette
13	packages; creating s. 210.085, F.S.; requiring
14	manufacturers, importers, distributing agents, dealers,
15	and retail dealers to hold a current, valid permit to
16	sell, distribute, or receive cigarettes; amending s.
17	210.09, F.S.; providing notice and filing guidelines for
18	certain persons shipping unstamped cigarette packages;
19	authorizing certain law enforcement officials to inspect
20	certain shipping vehicles; providing for application to
21	and records requirements of manufacturers and importers;
22	amending s. 210.12, F.S.; authorizing the state to claim
23	certain property and materials from certain dealers and
24	retailers who attempt to defraud the state; authorizing
25	the destruction of certain cigarettes; amending s. 210.15,
26	F.S.; providing criteria for permit application;
27	prohibiting issuance, maintenance, or renewal of certain
28	permits for certain applicants; providing guidelines for
29	permit application denial; amending s. 210.16, F.S.;
30	revising the authority of the Division of Alcoholic
31	Beverages and Tobacco to revoke or suspend the permits of
32	certain persons under certain circumstances; revising a
33	penalty period for revoked permits; increasing a civil
34	penalty; amending s. 210.18, F.S.; expanding the group of
35	violators subject to criminal liability; providing for
36	seizure of counterfeit cigarettes and related machinery;
37	making unlawful the selling or possessing with intent to
38	sell counterfeit cigarettes; providing criminal penalties;
39	providing for destruction of counterfeit cigarettes;
40	creating s. 210.181, F.S.; providing civil penalties for
41	failure to comply with certain duties or pay certain
42	taxes; reenacting ss. 772.102(1)(a) and 895.02(1)(a),
43	F.S., relating to crimes constituting a "criminal
44	activity" and definitions as used in the Florida RICO Act,
45	to incorporate the amendment to s. 210.18, F.S., in
46	references thereto; providing an effective date.
47
48	Be It Enacted by the Legislature of the State of Florida:
49
50	Section 1.  Subsections (6) and (7) of section 210.01,
51	Florida Statutes, are amended, and subsections (19) through (22)
52	are added to said section, to read:
53	210.01  Definitions.--When used in this part the following
54	words shall have the meaning herein indicated:
55	(6)  "Wholesale dealer" means any person located inside or
56	outside this state who sells cigarettes to retail dealers or
57	other persons for purposes of resale only, or any person who
58	operates more than one cigarette vending machine located in more
59	than one place of business. Such term shall not include any
60	cigarette manufacturer, export warehouse proprietor, or importer
61	with a valid permit under 26 U.S.C. s. 5712 if such person sells
62	or distributes cigarettes in this state only to dealers who are
63	agents and who hold valid and current permits under s. 210.15 or
64	to any cigarette manufacturer, export warehouse proprietor, or
65	importer who holds a valid and current permit under 26 U.S.C. s.
66	5712.
67	(7)  "Retail dealer" means any person located inside or
68	outside this state other than a wholesale dealer engaged in the
69	business of selling cigarettes, including persons issued a
70	permit pursuant to s. 569.003.
71	(19)  "Stamp" or "stamps" means the indicia required to be
72	placed on cigarette packages that evidence payment of the tax on
73	cigarettes under s. 210.02.
74	(20)  "Importer" means any person with a valid permit under
75	26 U.S.C. s. 5712 who imports into the United States, directly
76	or indirectly, a finished cigarette for sale or distribution.
77	(21)  "Manufacturer" means any domestic person or entity
78	with a valid permit under 26 U.S.C. s. 5712 that manufactures,
79	fabricates, assembles, processes, or labels a finished
80	cigarette.
81	(22)  "Counterfeit cigarettes" means cigarettes that have
82	false manufacturing labels, tobacco product packs with
83	counterfeit tax stamps, or any combination thereof.
84	Section 2.  Subsection (1) of section 210.06, Florida
85	Statutes, is amended, and subsection (5) is added to said
86	section, to read:
87	210.06  Affixation of stamps; presumption.--
88	(1)  Every dealer within or without the state shall affix
89	or cause to be affixed to such package or container of such
90	cigarettes such, stamps as are required under this section
91	within 10 days after receipt of such products. Dealers outside
92	this state shall affix such stamps before the shipment of
93	cigarettes into this state, evidencing the payment of the tax
94	imposed by virtue of this part before such cigarettes are
95	offered for sale or use or consumed or before they are otherwise
96	disposed of in the state.
97	(a)  A tax stamp shall be applied to all cigarette packages
98	intended for sale or distribution to consumers subject to the
99	tax imposed under s. 210.02, except as otherwise provided in
100	this part.
101	(b)  No stamp shall be applied to any cigarette package
102	exempt from tax under 26 U.S.C. s. 5704 that is distributed by a
103	manufacturer pursuant to federal regulations.
104	(c)  Dealers may apply stamps only to cigarette packages
105	received directly from a manufacturer or importer of cigarettes,
106	or a distributing agent representing a manufacturer or importer
107	of cigarettes, who possesses a valid and current permit under
108	this part.
109	(5)  Except as provided in s. 210.04(9) or s. 210.09(1), no
110	person, other than a dealer or distributing agent that receives
111	unstamped cigarette packages directly from a cigarette
112	manufacturer or importer in accordance with this section and s.
113	210.085, shall hold or possess an unstamped cigarette package.
114	Dealers shall be permitted to set aside, without application of
115	stamps, only such part of the dealer's stock that is identified
116	for sale or distribution outside this state. If a dealer
117	maintains stocks of unstamped cigarette packages, such unstamped
118	packages shall be stored separately from stamped product
119	packages. No unstamped cigarette packages shall be transferred
120	by a dealer to another facility of the dealer within this state
121	or to another person within this state.
122	Section 3.  Section 210.085, Florida Statutes, is created
123	to read:
124	210.085  Transactions only with permitted manufacturers,
125	importers, distributing agents, dealers, and retail
126	dealers.--Except as otherwise provided in s. 210.04(9), a
127	manufacturer or importer, or a distributing agent representing a
128	manufacturer or importer, may sell or distribute cigarettes to a
129	person located or doing business within this state only if such
130	person is a dealer or importer with a valid, current permit
131	under s. 210.15. A distributing agent may accept cigarettes from
132	a manufacturer or importer with a valid, current permit for
133	transfer to a dealer with a valid, current permit but may not
134	own or sell cigarettes. A dealer may sell or distribute
135	cigarettes to a person located or doing business within this
136	state only if such person is a dealer or retail dealer with a
137	valid, current permit under s. 569.003. A dealer may obtain
138	cigarettes only from a manufacturer or importer or from a
139	distributing agent or dealer with a valid, current permit under
140	s. 210.15. A retail dealer may obtain cigarettes only from a
141	dealer with a valid, current permit under s. 210.15.
142	Section 4.  Subsections (1), (2), and (3) and paragraph (a)
143	of subsection (4) of section 210.09, Florida Statutes, are
144	amended to read:
145	210.09  Records to be kept; reports to be made;
146	examination.--
147	(1)(a)  Every person who shall possess or transport any
148	unstamped cigarettes upon the public highways, roads, or streets
149	of the state, shall be required to have in his or her actual
150	possession invoices or delivery tickets for such cigarettes. The
151	absence of such invoices or delivery tickets shall be prima
152	facie evidence that such person is a dealer in cigarettes in
153	this state and subject to the provisions of this part.
154	(b)  Any person who ships unstamped cigarette packages into
155	this state other than to a manufacturer, an importer, or a
156	distributing agent representing a manufacturer or an importer,
157	or dealer holding a valid, current permit pursuant to s. 210.15
158	shall first file with the division a notice of such shipment.
159	This paragraph shall not apply to any common or contract carrier
160	that is transporting cigarettes through this state to another
161	location outside this state under a proper bill of lading or
162	freight bill that states the quantity, source, and destination
163	of such cigarettes or to cigarettes shipped or otherwise
164	transported pursuant to s. 210.04(9).
165	(c)  In any case in which the division or its duly
166	authorized agent, or any law enforcement officer of this state,
167	has probable cause to believe that any vehicle is transporting
168	cigarettes in violation of this part, the division, such agent,
169	or such law enforcement officer is authorized to stop such
170	vehicle and inspect the vehicle for contraband cigarettes.
171	(2)  The division is authorized to prescribe and promulgate
172	by rules and regulations, which shall have the force and effect
173	of the law, such records to be kept and reports to be made to
174	the division by any manufacturer, importer, distributing agent,
175	wholesale dealer, retail dealer, common carrier, or any other
176	person handling, transporting or possessing cigarettes for sale
177	or distribution within the state as may be necessary to collect
178	and properly distribute the taxes imposed by s. 210.02. All
179	reports shall be made on or before the 10th day of the month
180	following the month for which the report is made, unless the
181	division by rule or regulation shall prescribe that reports be
182	made more often.
183	(3)  All manufacturers, importers, distributing agents,
184	wholesale dealers, agents, or retail dealers shall maintain and
185	keep for a period of 3 years at the place of business where any
186	transaction takes place, such records of cigarettes received,
187	sold, or delivered within the state as may be required by the
188	division. The division or its duly authorized representative is
189	hereby authorized to examine the books, papers, invoices, and
190	other records, the stock of cigarettes in and upon any premises
191	where the same are placed, stored, and sold, and the equipment
192	of any such manufacturers, importers, distributing agents,
193	wholesale dealers, agents, or retail dealers, pertaining to the
194	sale and delivery of cigarettes taxable under this part. To
195	verify the accuracy of the tax imposed and assessed by this
196	part, each person is hereby directed and required to give to the
197	division or its duly authorized representatives the means,
198	facilities, and opportunity for such examinations as are herein
199	provided for and required.
200	(4)(a)  All persons who are either cigarette manufacturers,
201	importers, wholesalers, vending machine operators or
202	distributing agents, and agents and employees of the same, are
203	required to keep daily sales tickets or invoices of cigarette
204	sales and it shall be the duty of said persons to see that each
205	sales ticket and invoice handled by them or on behalf of them
206	show the correct name and address to whom sold and the number of
207	packages or cartons of each brand sold. It shall also be the
208	duty of said persons to see that each sales ticket or invoice
209	correctly shows whether the same is inside or outside of a
210	qualified municipality and if the sale is made within the limits
211	of a qualified municipality, the correct name of the
212	municipality must be indicated.
213	Section 5.  Subsection (1) of section 210.12, Florida
214	Statutes, is amended, subsections (2) through (6) of said
215	section are renumbered as subsections (4) through (8),
216	respectively, and new subsections (2) and (3) are added to said
217	section, to read:
218	210.12  Seizures; forfeiture proceedings.--
219	(1)  The state, acting by and through the division, shall
220	be authorized and empowered to seize, confiscate, and forfeit
221	for the use and benefit of the state, any cigarettes upon which
222	taxes payable hereunder may be unpaid or that are otherwise held
223	in violation of the requirements of this chapter, and also any
224	vending machine or receptacle in which such cigarettes upon
225	which taxes have not been paid are held for sale, or any vending
226	machine that does not have affixed thereto the identification
227	sticker required by the provisions of s. 210.07, or which does
228	not display at all times at least one package of each brand of
229	cigarettes located therein so the same is clearly visible and
230	arranged in such a manner that the cigarette tax stamp or meter
231	impression of the stamp affixed thereto is clearly visible. Such
232	seizure may be made by the division, its duly authorized
233	representative, any sheriff or deputy sheriff, or any police
234	officer.
235	(2)  All fixtures, equipment, and other materials and
236	personal property on the premises of any dealer, retail dealer,
237	or distributing agent who, with intent to defraud the state,
238	fails to keep or make any record, return, report, or inventory
239	required by this part; keeps or makes any false or fraudulent
240	record, return, report, or inventory required by this part;
241	refuses to pay any tax imposed by this part; or attempts in any
242	manner to evade or defeat the requirements of this part shall be
243	forfeited to the state as provided by the Florida Contraband
244	Forfeiture Act.
245	(3)  All cigarettes seized, confiscated, and forfeited to
246	the state under this part shall be destroyed.
247	Section 6.  Subsection (1) of section 210.15, Florida
248	Statutes, is amended to read:
249	210.15  Permits.--
250	(1)(a)  Every person, firm, or corporation desiring to
251	engage in business as a manufacturer, importer, exporter,
252	distributing agent, or wholesale dealer of cigarettes deal in
253	cigarettes as a distributing agent, wholesale dealer, or
254	exporter within this state shall file with the division an
255	application for a cigarette permit for each place of business
256	located within this state or, in the absence of such place of
257	business in this state, for wherever its principal place of
258	business is located with the Division of Alcoholic Beverages and
259	Tobacco. Every application for a cigarette permit shall be made
260	on forms furnished by the division and shall set forth the name
261	under which the applicant transacts or intends to transact
262	business, the location of the applicant's place of business
263	within the state, if any, and such other information as the
264	division may require. If the applicant has or intends to have
265	more than one place of business dealing in cigarettes within
266	this state, the application shall state the location of each
267	place of business. If the applicant is an association, the
268	application shall set forth the names and addresses of the
269	persons constituting the association, and if a corporation, the
270	names and addresses of the principal officers thereof and any
271	other information prescribed by the division for the purpose of
272	identification. The application shall be signed and verified by
273	oath or affirmation by the owner, if a natural person, and in
274	the case of an association or partnership, members or partners
275	thereof, and in the case of a corporation, by an executive
276	officer thereof or by any person specifically authorized by the
277	corporation to sign the application, to which shall be attached
278	the written evidence of this authority. The cigarette permit for
279	a distributing agent shall be issued annually for which an
280	annual fee of $5 shall be charged.
281	(b)  The holder of any duly issued, annual permit for a
282	distributing agent shall be entitled to a renewal of his or her
283	annual permit from year to year as a matter of course, on or
284	before July 1, upon making application to the division and upon
285	payment of this annual permit fee.
286	(b)(c)  Permits The permit for a distributing agent,
287	wholesale dealer, or exporter shall be issued only to persons of
288	good moral character, who are not less than 18 years of age.
289	Distributing agent, wholesale dealer, or exporter Permits to
290	corporations shall be issued only to corporations whose officers
291	are of good moral character and not less than 18 years of age.
292	There shall be no exemptions from the permit fees herein
293	provided to any persons, association of persons, or corporation,
294	any law to the contrary notwithstanding.
295	(c)  No distributing agent, wholesale dealer, or exporter
296	permit under this part or chapter 569 shall be issued,
297	maintained, or renewed if the applicant, its officers, or any
298	person or persons owning directly or indirectly, in the
299	aggregate, more than 10 percent of the ownership interests in
300	the applicant:
301	1.  Has been finally adjudicated as owing $500 or more in
302	delinquent cigarette taxes;
303	2.  Had a permit revoked by the division within the
304	previous 2 years;
305	3.  Has been convicted of selling stolen or counterfeit
306	cigarettes, receiving stolen cigarettes, or being involved in
307	the counterfeiting of cigarettes;
308	4.  to any person who Has been convicted within the past 5
309	years of any offense against the cigarette laws of this state or
310	who has been convicted in this state, any other state, or the
311	United States during the past 5 years of any offense designated
312	as a felony by such state or the United States, or to a
313	corporation, any of whose officers have been so convicted. The
314	term "convicted conviction" shall include an adjudication of
315	guilt on a plea of guilty or a plea of nolo contendere, or the
316	forfeiture of a bond when charged with a crime;.
317	5.  Has imported, or caused to be imported, into the United
318	States any cigarette in violation of 19 U.S.C. s. 1681a; or
319	6.  Has imported, or caused to be imported into the United
320	States, or manufactured for sale or distribution in the United
321	States, any cigarette that does not fully comply with the
322	Federal Cigarette Labeling and Advertising Act (15 U.S.C. ss.
323	1331 et seq.).
324	(d)  The division may refuse to issue a distributing agent,
325	wholesale, or exporter permit to any person, firm, or
326	corporation whose permit under the cigarette law has been
327	revoked, or to any corporation, an officer of which has had his
328	or her permit under the cigarette law revoked, or to any person
329	who is or has been an officer of a corporation whose permit has
330	been revoked under the cigarette law. Any permit issued to a
331	firm or corporation prohibited from obtaining such permit under
332	the cigarette law may be revoked by the division.
333	(e)  Prior to an application for a distributing agent,
334	wholesale dealer, or exporter permit being approved, the
335	applicant shall file a set of fingerprints on forms provided by
336	the division. The applicant shall also file a set of
337	fingerprints for any person or persons interested directly or
338	indirectly with the applicant in the business for which the
339	permit is being sought, when so required by the division. If the
340	applicant or any person interested with the applicant, either
341	directly or indirectly, in the business for which the permit is
342	sought shall be such a person as is within the definition of
343	persons to whom a distributing agent, wholesale dealer, or
344	exporter permit shall be denied, then the application may be
345	denied by the division. If the applicant is a partnership, all
346	members of the partnership are required to file said
347	fingerprints, or if a corporation, all principal officers of the
348	corporation are required to file said fingerprints. The
349	cigarette permit for a manufacturer, importer, distributing
350	agent, wholesale dealer, or exporter shall be originally issued
351	at a fee of $100, which sum is to cover the cost of the
352	investigation required before issuing such permit.
353	(f)  The cigarette permits issued under this section permit
354	for a wholesale dealer or exporter shall be renewed from year to
355	year as a matter of course, at an annual cost of $100, on or
356	before July 1, upon making application to the division and upon
357	payment of the annual renewal fee.
358	(g)  Permittees, by acceptance of their permits, agree that
359	their places of business or vehicles transporting cigarettes
360	shall always be subject to be inspected and searched without a
361	search warrant for the purpose of ascertaining that all
362	provisions of this part are complied with by authorized
363	employees of the division and also by sheriffs, deputy sheriffs,
364	and police officers during business hours or during any other
365	time such premises are occupied by the permittee or other
366	persons. Retail cigarette dealers and manufacturers'
367	representatives, by dealing in cigarettes, agree that their
368	places of business or vehicles transporting cigarettes shall
369	always be subject to inspection and search without a search
370	warrant for the purpose of ascertaining that all provisions of
371	this part are complied with by authorized employees of the
372	division and also by sheriffs, deputy sheriffs, and police
373	officers during business hours or other times when the premises
374	are occupied by the retail dealer or manufacturers'
375	representatives or other persons.
376	(h)  No retail sales of cigarettes may be made at a
377	location for which a wholesale dealer, distributing agent, or
378	exporter permit has been issued. The excise tax on sales made to
379	any traveling location, such as an itinerant store or industrial
380	caterer, shall be paid into the General Revenue Fund
381	unallocated. Cigarettes may be purchased for retail purposes
382	only from a person holding a wholesale dealer permit. The
383	invoice for the purchase of cigarettes must show the place of
384	business for which the purchase is made and the cigarettes
385	cannot be transferred to any other place of business for the
386	purpose of resale.
387	Section 7.  Section 210.16, Florida Statutes, is amended to
388	read:
389	210.16  Revocation or suspension of permit.--
390	(1)  The Division of Alcoholic Beverages and Tobacco is
391	given full power and authority to revoke the permit of any
392	person wholesale dealer receiving a permit to engage in business
393	under this part or chapter 569 for violation of any of the
394	provisions of this part or chapter 569.
395	(2)  The division shall revoke the permit or permits of any
396	person who would be ineligible to obtain a new license or renew
397	a license by reason of any of the conditions for permitting
398	provided in s. 210.15(1)(c)1.-6.
399	(3)(2)  The division may suspend for a reasonable period of
400	time or revoke, in its discretion, the permits of wholesale
401	dealers issued under the provisions of this part or chapter 569
402	to any person who has violated any other provision of this part
403	or chapter 569 for the same causes and under the same
404	limitations as is authorized hereunder to revoke the permits of
405	such wholesale dealers.
406	(4)(3)  No person wholesale dealer whose permit for any
407	place of business has been revoked shall engage in business
408	under this part or chapter 569 at such place of business after
409	such revocation until a new permit is issued. No person
410	wholesale dealer whose permit for any place of business has been
411	revoked shall be permitted to have said permit renewed, or to
412	obtain an additional cigarette permit for any other place of
413	business, for a period of 2 years 6 months after the date such
414	revocation becomes final.
415	(5)(4)  In addition to lieu of the suspension or revocation
416	of permits, the division may impose civil penalties against
417	holders of permits for violations of this part or rules and
418	regulations relating thereto. No civil penalty so imposed shall
419	exceed $2,500 $1,000 for each offense, and all amounts collected
420	shall be deposited with the Chief Financial Officer to the
421	credit of the General Revenue Fund. If the holder of the permit
422	fails to pay the civil penalty, his or her permit shall be
423	suspended for such period of time as the division may specify.
424	Section 8.  Subsections (2) and (3) of section 210.18,
425	Florida Statutes, are amended, and subsection (9) is added to
426	said section, to read:
427	210.18  Penalties for tax evasion; reports by sheriffs.--
428	(2)  Except as otherwise provided in this section, any
429	person wholesale or retail dealer who fails, neglects, or
430	refuses to comply with, or violates the provisions of, this part
431	or the rules adopted and regulations promulgated by the division
432	under this part commits is guilty of a misdemeanor of the first
433	degree, punishable as provided in s. 775.082 or s. 775.083. Any
434	person wholesale or retail dealer who has been convicted of a
435	violation of any provision of the cigarette tax law and who is
436	thereafter convicted of a further violation of the cigarette tax
437	law commits is, upon conviction of such further offense, guilty
438	of a felony of the third degree, punishable as provided in s.
439	775.082, s. 775.083, or s. 775.084.
440	(3)  Any person who falsely or fraudulently makes, forges,
441	alters, or counterfeits any stamp or impression die used in
442	meter machines prescribed by the division under the provisions
443	of this part; or, with intent to evade taxes, jams, tampers
444	with, or alters such a machine; or causes or procures to be
445	falsely or fraudulently made, forged, altered, or counterfeited
446	any such stamp or die; or knowingly and willfully utters,
447	purchases, passes or tenders as true any such false, altered, or
448	counterfeited stamp or die impression; or, with the intent to
449	defraud the state, fails to comply with any other requirement of
450	this section commits is guilty of a felony of the third degree,
451	punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
452	(9)  Notwithstanding any other provision of law, the sale
453	or possession for sale of counterfeit cigarettes by any person
454	or by a manufacturer, importer, distributing agent, wholesale
455	dealer, or retail dealer shall result in the seizure of the
456	product and related machinery by the division or any law
457	enforcement agency.
458	(10)  It is unlawful to sell or possess with the intent to
459	sell counterfeit cigarettes, as defined in s. 210.01(22).
460	(a)  A person who does not hold a permit or holds a retail
461	permit under the provisions of this chapter and who violates
462	this subsection commits a felony of the third degree, punishable
463	as provided in s. 775.082, s. 775.083, or s. 775.084, and is
464	subject to the imposition of fines and additional penalties as
465	follows:
466	1.  If the quantity of counterfeit cigarettes sold or
467	possessed with the intent to sell is less than two cartons or
468	the equivalent, the fine for a first violation shall not exceed
469	$1,000 or five times the retai1 value of the counterfeit
470	cigarettes, whichever is greater. A subsequent violation may
471	result in the imposition of a fine not to exceed $5,000 or five
472	times the retail value of the counterfeit cigarettes, whichever
473	is greater, and shall result in revocation of the retail permit
474	by the division.
475	2.  If the quantity of counterfeit cigarettes sold or
476	possessed with the intent to sell is two cartons or more or the
477	equivalent, the fine for a first violation shall not exceed
478	$2,000 or five times the retail value of the counterfeit
479	cigarettes, whichever is greater. A subsequent violation may
480	result in the imposition of a fine not to exceed $50,000 or five
481	times the retail value of the counterfeit cigarettes, whichever
482	is greater, and shall result in revocation of the retail permit
483	by the division.
484	(b)  A person who holds a permit, other than a retail
485	permit, under the provisions of this chapter and who violates
486	this subsection commits a felony of the third degree, punishable
487	as provided in s. 775.082, s. 775.083, or s. 775.084, and is
488	subject to the imposition of fines and additional penalties as
489	follows:
490	1.  If the quantity of counterfeit cigarettes sold or
491	possessed with the intent to sell is less than 10 cartons or the
492	equivalent, the fine for a first violation shall not exceed
493	$1,000 or five times the retail value of the counterfeit
494	cigarettes, whichever is greater. A subsequent violation may
495	result in the imposition of a fine not to exceed $5,000 or five
496	times the retail value of the counterfeit cigarettes, whichever
497	is greater, and shall result in revocation of the permit by the
498	division.
499	2.  If the quantity of counterfeit cigarettes sold or
500	possessed with the intent to sell is 10 cartons or more or the
501	equivalent, the fine for a first violation shall not exceed
502	$2,000 or five times the retail value of the counterfeit
503	cigarettes, whichever is greater. A subsequent violation may
504	result in the imposition of a fine not to exceed $50,000 or five
505	times the retail value of the counterfeit cigarettes, whichever
506	is greater, and shall result in revocation of the retail permit
507	by the division.
508
509	For purposes of this subsection, any counterfeit cigarettes
510	seized by the division shall be destroyed.
511	Section 9.  Section 210.181, Florida Statutes, is created
512	to read:
513	210.181  Civil penalties.--
514	(1)  Except as provided in s. 210.16(5), whoever knowingly
515	omits, neglects, or refuses to comply with any duty imposed upon
516	him or her by this part, or to do or cause to be done any of the
517	things required by this part, or does anything prohibited by
518	this part shall, in addition to any other penalty provided in
519	this part, be liable for a fine of $1,000 or five times the
520	retail value of the cigarettes involved, whichever is greater.
521	(2)  Whoever fails to pay any tax imposed by this part at
522	the time prescribed by law or rules shall, in addition to any
523	other penalty provided in this part, be liable for a penalty of
524	five times the unpaid tax due.
525	Section 10.  For the purpose of incorporating the amendment
526	to section 210.18, Florida Statutes, in a reference thereto,
527	paragraph (a) of subsection (1) of section 772.102, Florida
528	Statutes, is reenacted to read:
529	772.102  Definitions.--As used in this chapter, the term:
530	(1)  "Criminal activity" means to commit, to attempt to
531	commit, to conspire to commit, or to solicit, coerce, or
532	intimidate another person to commit:
533	(a)  Any crime which is chargeable by indictment or
534	information under the following provisions:
535	1.  Section 210.18, relating to evasion of payment of
536	cigarette taxes.
537	2.  Section 414.39, relating to public assistance fraud.
538	3.  Section 440.105 or s. 440.106, relating to workers'
539	compensation.
540	4.  Part IV of chapter 501, relating to telemarketing.
541	5.  Chapter 517, relating to securities transactions.
542	6.  Section 550.235, s. 550.3551, or s. 550.3605, relating
543	to dogracing and horseracing.
544	7.  Chapter 550, relating to jai alai frontons.
545	8.  Chapter 552, relating to the manufacture, distribution,
546	and use of explosives.
547	9.  Chapter 562, relating to beverage law enforcement.
548	10.  Section 624.401, relating to transacting insurance
549	without a certificate of authority, s. 624.437(4)(c)1., relating
550	to operating an unauthorized multiple-employer welfare
551	arrangement, or s. 626.902(1)(b), relating to representing or
552	aiding an unauthorized insurer.
553	11.  Chapter 687, relating to interest and usurious
554	practices.
555	12.  Section 721.08, s. 721.09, or s. 721.13, relating to
556	real estate timeshare plans.
557	13.  Chapter 782, relating to homicide.
558	14.  Chapter 784, relating to assault and battery.
559	15.  Chapter 787, relating to kidnapping.
560	16.  Chapter 790, relating to weapons and firearms.
561	17.  Section 796.03, s. 796.04, s. 796.05, or s. 796.07,
562	relating to prostitution.
563	18.  Chapter 806, relating to arson.
564	19.  Section 810.02(2)(c), relating to specified burglary
565	of a dwelling or structure.
566	20.  Chapter 812, relating to theft, robbery, and related
567	crimes.
568	21.  Chapter 815, relating to computer-related crimes.
569	22.  Chapter 817, relating to fraudulent practices, false
570	pretenses, fraud generally, and credit card crimes.
571	23.  Section 827.071, relating to commercial sexual
572	exploitation of children.
573	24.  Chapter 831, relating to forgery and counterfeiting.
574	25.  Chapter 832, relating to issuance of worthless checks
575	and drafts.
576	26.  Section 836.05, relating to extortion.
577	27.  Chapter 837, relating to perjury.
578	28.  Chapter 838, relating to bribery and misuse of public
579	office.
580	29.  Chapter 843, relating to obstruction of justice.
581	30.  Section 847.011, s. 847.012, s. 847.013, s. 847.06, or
582	s. 847.07, relating to obscene literature and profanity.
583	31.  Section 849.09, s. 849.14, s. 849.15, s. 849.23, or s.
584	849.25, relating to gambling.
585	32.  Chapter 893, relating to drug abuse prevention and
586	control.
587	33.  Section 914.22 or s. 914.23, relating to witnesses,
588	victims, or informants.
589	34.  Section 918.12 or s. 918.13, relating to tampering
590	with jurors and evidence.
591	Section 11.  For the purpose of incorporating the amendment
592	to section 210.18, Florida Statutes, in a reference thereto,
593	paragraph (a) of subsection (1) of section 895.02, Florida
594	Statutes, is reenacted to read:
595	895.02  Definitions.--As used in ss. 895.01-895.08, the
596	term:
597	(1)  "Racketeering activity" means to commit, to attempt to
598	commit, to conspire to commit, or to solicit, coerce, or
599	intimidate another person to commit:
600	(a)  Any crime which is chargeable by indictment or
601	information under the following provisions of the Florida
602	Statutes:
603	1.  Section 210.18, relating to evasion of payment of
604	cigarette taxes.
605	2.  Section 403.727(3)(b), relating to environmental
606	control.
607	3.  Section 409.920 or s. 409.9201, relating to Medicaid
608	fraud.
609	4.  Section 414.39, relating to public assistance fraud.
610	5.  Section 440.105 or s. 440.106, relating to workers'
611	compensation.
612	6.  Section 465.0161, relating to distribution of medicinal
613	drugs without a permit as an Internet pharmacy.
614	7.  Sections 499.0051, 499.0052, 499.00535, 499.00545, and
615	499.0691, relating to crimes involving contraband and
616	adulterated drugs.
617	8.  Part IV of chapter 501, relating to telemarketing.
618	9.  Chapter 517, relating to sale of securities and
619	investor protection.
620	10.  Section 550.235, s. 550.3551, or s. 550.3605, relating
621	to dogracing and horseracing.
622	11.  Chapter 550, relating to jai alai frontons.
623	12.  Chapter 552, relating to the manufacture,
624	distribution, and use of explosives.
625	13.  Chapter 560, relating to money transmitters, if the
626	violation is punishable as a felony.
627	14.  Chapter 562, relating to beverage law enforcement.
628	15.  Section 624.401, relating to transacting insurance
629	without a certificate of authority, s. 624.437(4)(c)1., relating
630	to operating an unauthorized multiple-employer welfare
631	arrangement, or s. 626.902(1)(b), relating to representing or
632	aiding an unauthorized insurer.
633	16.  Section 655.50, relating to reports of currency
634	transactions, when such violation is punishable as a felony.
635	17.  Chapter 687, relating to interest and usurious
636	practices.
637	18.  Section 721.08, s. 721.09, or s. 721.13, relating to
638	real estate timeshare plans.
639	19.  Chapter 782, relating to homicide.
640	20.  Chapter 784, relating to assault and battery.
641	21.  Chapter 787, relating to kidnapping.
642	22.  Chapter 790, relating to weapons and firearms.
643	23.  Section 796.03, s. 796.035, s. 796.04, s. 796.045, s.
644	796.05, or s. 796.07, relating to prostitution and sex
645	trafficking.
646	24.  Chapter 806, relating to arson.
647	25.  Section 810.02(2)(c), relating to specified burglary
648	of a dwelling or structure.
649	26.  Chapter 812, relating to theft, robbery, and related
650	crimes.
651	27.  Chapter 815, relating to computer-related crimes.
652	28.  Chapter 817, relating to fraudulent practices, false
653	pretenses, fraud generally, and credit card crimes.
654	29.  Chapter 825, relating to abuse, neglect, or
655	exploitation of an elderly person or disabled adult.
656	30.  Section 827.071, relating to commercial sexual
657	exploitation of children.
658	31.  Chapter 831, relating to forgery and counterfeiting.
659	32.  Chapter 832, relating to issuance of worthless checks
660	and drafts.
661	33.  Section 836.05, relating to extortion.
662	34.  Chapter 837, relating to perjury.
663	35.  Chapter 838, relating to bribery and misuse of public
664	office.
665	36.  Chapter 843, relating to obstruction of justice.
666	37.  Section 847.011, s. 847.012, s. 847.013, s. 847.06, or
667	s. 847.07, relating to obscene literature and profanity.
668	38.  Section 849.09, s. 849.14, s. 849.15, s. 849.23, or s.
669	849.25, relating to gambling.
670	39.  Chapter 874, relating to criminal street gangs.
671	40.  Chapter 893, relating to drug abuse prevention and
672	control.
673	41.  Chapter 896, relating to offenses related to financial
674	transactions.
675	42.  Sections 914.22 and 914.23, relating to tampering with
676	a witness, victim, or informant, and retaliation against a
677	witness, victim, or informant.
678	43.  Sections 918.12 and 918.13, relating to tampering with
679	jurors and evidence.
680	Section 12.  This act shall take effect October 1, 2005.

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