HB 0205

CS

CHAMBER ACTION

1	The Commerce Council 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. 210.021, F.S.; directing the
10	Secretary of Business and Professional Regulation to
11	require certain dealers and agents to remit the tax on
12	cigarettes by certified check or electronic funds
13	transfer; requiring the Division of Alcoholic Beverages
14	and Tobacco of the department to adopt rules governing the
15	payment of taxes by electronic funds transfer; amending s.
16	210.06, F.S.; revising requirements for and limitations on
17	the affixation of stamps; providing requirements with
18	respect to receipt, possession, storage, and transport of
19	unstamped cigarette packages; amending s. 210.08, F.S.;
20	revising the amount of the surety bond, certificate of
21	deposit, or irrevocable letter of credit required by the
22	division as surety for the payment of cigarette taxes;
23	creating s. 210.085, F.S.; requiring manufacturers,
24	importers, distributing agents, dealers, and retail
25	dealers to hold a current, valid permit to sell,
26	distribute, or receive cigarettes; amending s. 210.09,
27	F.S.; providing notice and filing guidelines for certain
28	persons shipping unstamped cigarette packages; authorizing
29	certain law enforcement officials to inspect certain
30	shipping vehicles; providing for application to and
31	records requirements of manufacturers and importers;
32	amending s. 210.12, F.S.; authorizing the state to claim
33	certain property and materials from certain dealers and
34	retailers who attempt to defraud the state; authorizing
35	the destruction of certain cigarettes; amending s. 210.15,
36	F.S.; providing criteria for permit application;
37	prohibiting issuance, maintenance, or renewal of certain
38	permits for certain applicants; providing guidelines for
39	permit application denial; amending s. 210.16, F.S.;
40	revising the authority of the Division of Alcoholic
41	Beverages and Tobacco to revoke or suspend the permits of
42	certain persons under certain circumstances; revising a
43	penalty period for revoked permits; increasing a civil
44	penalty; amending s. 210.18, F.S.; expanding the group of
45	violators subject to criminal liability; expanding the
46	list of persons required to report seizures of unstamped
47	cigarettes; requiring the division to keep certain
48	records; providing for seizure of counterfeit cigarettes
49	and related machinery; making unlawful the selling or
50	possessing with intent to sell counterfeit cigarettes;
51	providing criminal penalties; providing for destruction of
52	counterfeit cigarettes; creating s. 210.181, F.S.;
53	providing civil penalties for failure to comply with
54	certain duties or pay certain taxes; reenacting ss.
55	772.102(1)(a) and 895.02(1)(a), F.S., relating to crimes
56	constituting a "criminal activity" and definitions as used
57	in the Florida RICO Act, to incorporate the amendment to
58	s. 210.18, F.S., in references thereto; providing an
59	effective date.
60
61	Be It Enacted by the Legislature of the State of Florida:
62
63	Section 1.  Subsections (6) and (7) of section 210.01,
64	Florida Statutes, are amended, and subsections (19) through (22)
65	are added to said section, to read:
66	210.01  Definitions.--When used in this part the following
67	words shall have the meaning herein indicated:
68	(6)  "Wholesale dealer" means any person located inside or
69	outside this state who sells cigarettes to retail dealers or
70	other persons for purposes of resale only, or any person who
71	operates more than one cigarette vending machine located in more
72	than one place of business. Such term shall not include any
73	cigarette manufacturer, export warehouse proprietor, or importer
74	with a valid permit under 26 U.S.C. s. 5712 if such person sells
75	or distributes cigarettes in this state only to dealers who are
76	agents and who hold valid and current permits under s. 210.15 or
77	to any cigarette manufacturer, export warehouse proprietor, or
78	importer who holds a valid and current permit under 26 U.S.C. s.
79	5712.
80	(7)  "Retail dealer" means any person located inside or
81	outside this state other than a wholesale dealer engaged in the
82	business of selling cigarettes, including persons issued a
83	permit pursuant to s. 569.003.
84	(19)  "Stamp" or "stamps" means the indicia required to be
85	placed on cigarette packages that evidence payment of the tax on
86	cigarettes under s. 210.02.
87	(20)  "Importer" means any person with a valid permit under
88	26 U.S.C. s. 5712 who imports into the United States, directly
89	or indirectly, a finished cigarette for sale or distribution.
90	(21)  "Manufacturer" means any domestic person or entity
91	with a valid permit under 26 U.S.C. s. 5712 that manufactures,
92	fabricates, assembles, processes, or labels a finished
93	cigarette.
94	(22)  "Counterfeit cigarettes" means cigarettes that have
95	false manufacturing labels, tobacco product packs with
96	counterfeit tax stamps, or any combination thereof.
97	Section 2.  Section 210.021, Florida Statutes, is amended
98	to read:
99	210.021  Payment of taxes by certified check or electronic
100	funds transfer.--
101	(1)  The Secretary of Business and Professional Regulation
102	may require a dealer who sells cigarettes within the state to
103	remit by certified check or electronic funds transfer any tax
104	imposed under s. 210.02 if the taxpayer is subject to the tax
105	and if the total of such taxes he or she paid in the prior year
106	amounted to $50,000 or more.
107	(2)  The Secretary of Business and Professional Regulation
108	shall require for a period not to exceed 12 months that a dealer
109	or agent, during the dealer's or agent's initial period of
110	licensure or appointment, remit by certified check or electronic
111	funds transfer any tax imposed under s. 210.02.
112	(3)  The division shall adopt rules pursuant to ss.
113	120.536(1) and 120.54 to administer this section.
114	Section 3.  Subsection (1) of section 210.06, Florida
115	Statutes, is amended, and subsection (5) is added to said
116	section, to read:
117	210.06  Affixation of stamps; presumption.--
118	(1)  Every dealer within or without the state shall affix
119	or cause to be affixed to such package or container of such
120	cigarettes such, stamps as are required under this section
121	within 10 days after receipt of such products. Dealers outside
122	this state shall affix such stamps before the shipment of
123	cigarettes into this state, evidencing the payment of the tax
124	imposed by virtue of this part before such cigarettes are
125	offered for sale or use or consumed or before they are otherwise
126	disposed of in the state.
127	(a)  A tax stamp shall be applied to all cigarette packages
128	intended for sale or distribution to consumers subject to the
129	tax imposed under s. 210.02, except as otherwise provided in
130	this part.
131	(b)  No stamp shall be applied to any cigarette package
132	exempt from tax under 26 U.S.C. s. 5704 that is distributed by a
133	manufacturer pursuant to federal regulations.
134	(c)  Dealers may apply stamps only to cigarette packages
135	received directly from a manufacturer or importer of cigarettes,
136	or a distributing agent representing a manufacturer or importer
137	of cigarettes, who possesses a valid and current permit under
138	this part.
139	(5)  Except as provided in s. 210.04(9) or s. 210.09(1), no
140	person, other than a dealer or distributing agent that receives
141	unstamped cigarette packages directly from a cigarette
142	manufacturer or importer in accordance with this section and s.
143	210.085, shall hold or possess an unstamped cigarette package.
144	Dealers shall be permitted to set aside, without application of
145	stamps, only such part of the dealer's stock that is identified
146	for sale or distribution outside this state. If a dealer
147	maintains stocks of unstamped cigarette packages, such unstamped
148	packages shall be stored separately from stamped product
149	packages. No unstamped cigarette packages shall be transferred
150	by a dealer to another facility of the dealer within this state
151	or to another person within this state.
152	Section 4.  Section 210.08, Florida Statutes, is amended to
153	read:
154	210.08  Bond for payment of taxes.--Each dealer, agent, or
155	distributing agent shall file with the division a surety bond,
156	certificate of deposit, or irrevocable letter of credit
157	acceptable to the division in an amount equal to 110 percent of
158	the estimated tax liability for 30 days, but not less than
159	$2,000 the sum of $10,000 as surety for the payment of all
160	taxes; provided, however, that where in the discretion of the
161	division the amount of business done by the dealer, agent, or
162	distributing agent is of such volume that a bond, certificate of
163	deposit, or irrevocable letter of credit of less than $10,000
164	will be adequate to secure the payment of all taxes assessed as
165	authorized by the cigarette tax law, the division may accept a
166	bond, certificate of deposit, or irrevocable letter of credit in
167	a lesser sum than $10,000, but in no event shall it accept a
168	bond, certificate of deposit, or irrevocable letter of credit of
169	less than $1,000, and it may at any time in its discretion
170	require any bond, certificate of deposit, or irrevocable letter
171	of credit in an amount less than $10,000 to be increased not to
172	exceed $10,000.
173	Section 5.  Section 210.085, Florida Statutes, is created
174	to read:
175	210.085  Transactions only with permitted manufacturers,
176	importers, distributing agents, dealers, and retail
177	dealers.--Except as otherwise provided in s. 210.04(9), a
178	manufacturer or importer, or a distributing agent representing a
179	manufacturer or importer, may sell or distribute cigarettes to a
180	person located or doing business within this state only if such
181	person is a dealer or importer with a valid, current permit
182	under s. 210.15. A distributing agent may accept cigarettes from
183	a manufacturer or importer with a valid, current permit for
184	transfer to a dealer with a valid, current permit but may not
185	own or sell cigarettes. A dealer may sell or distribute
186	cigarettes to a person located or doing business within this
187	state only if such person is a dealer or retail dealer with a
188	valid, current permit under s. 569.003. A dealer may obtain
189	cigarettes only from a manufacturer or importer or from a
190	distributing agent or dealer with a valid, current permit under
191	s. 210.15. A retail dealer may obtain cigarettes only from a
192	dealer with a valid, current permit under s. 210.15.
193	Section 6.  Subsections (1), (2), and (3) and paragraph (a)
194	of subsection (4) of section 210.09, Florida Statutes, are
195	amended to read:
196	210.09  Records to be kept; reports to be made;
197	examination.--
198	(1)(a)  Every person who shall possess or transport any
199	unstamped cigarettes upon the public highways, roads, or streets
200	of the state, shall be required to have in his or her actual
201	possession invoices or delivery tickets for such cigarettes. The
202	absence of such invoices or delivery tickets shall be prima
203	facie evidence that such person is a dealer in cigarettes in
204	this state and subject to the provisions of this part.
205	(b)  Any person who ships unstamped cigarette packages into
206	this state other than to a manufacturer, an importer, or a
207	distributing agent representing a manufacturer or an importer,
208	or dealer holding a valid, current permit pursuant to s. 210.15
209	shall first file with the division a notice of such shipment.
210	This paragraph shall not apply to any common or contract carrier
211	that:
212	1.  Is transporting cigarettes through this state to
213	another location outside this state under a proper bill of
214	lading or freight bill that states the quantity, source, and
215	destination of such cigarettes or to cigarettes shipped or
216	otherwise transported pursuant to s. 210.04(9); or
217	2.  Does not issue paper bills of lading or freight bills
218	and does not obtain specific information about the contents of
219	the shipment that includes a description of the freight carried
220	but uses electronic shipping documents as part of its ordinary
221	course of business to provide transportation services for
222	individually addressed packages weighing less than 150 pounds,
223	which electronic shipping documents shall be made available for
224	inspection upon request.
225	(c)  In any case in which the division or its duly
226	authorized agent, or any law enforcement officer of this state,
227	has probable cause to believe that any vehicle is transporting
228	cigarettes in violation of this part, the division, such agent,
229	or such law enforcement officer is authorized to stop such
230	vehicle and inspect the vehicle for contraband cigarettes.
231	(2)  The division is authorized to prescribe and promulgate
232	by rules and regulations, which shall have the force and effect
233	of the law, such records to be kept and reports to be made to
234	the division by any manufacturer, importer, distributing agent,
235	wholesale dealer, retail dealer, common carrier, or any other
236	person handling, transporting or possessing cigarettes for sale
237	or distribution within the state as may be necessary to collect
238	and properly distribute the taxes imposed by s. 210.02. All
239	reports shall be made on or before the 10th day of the month
240	following the month for which the report is made, unless the
241	division by rule or regulation shall prescribe that reports be
242	made more often.
243	(3)  All manufacturers, importers, distributing agents,
244	wholesale dealers, agents, or retail dealers shall maintain and
245	keep for a period of 3 years at the place of business where any
246	transaction takes place, such records of cigarettes received,
247	sold, or delivered within the state as may be required by the
248	division. The division or its duly authorized representative is
249	hereby authorized to examine the books, papers, invoices, and
250	other records, the stock of cigarettes in and upon any premises
251	where the same are placed, stored, and sold, and the equipment
252	of any such manufacturers, importers, distributing agents,
253	wholesale dealers, agents, or retail dealers, pertaining to the
254	sale and delivery of cigarettes taxable under this part. To
255	verify the accuracy of the tax imposed and assessed by this
256	part, each person is hereby directed and required to give to the
257	division or its duly authorized representatives the means,
258	facilities, and opportunity for such examinations as are herein
259	provided for and required.
260	(4)(a)  All persons who are either cigarette manufacturers,
261	importers, wholesalers, vending machine operators or
262	distributing agents, and agents and employees of the same, are
263	required to keep daily sales tickets or invoices of cigarette
264	sales and it shall be the duty of said persons to see that each
265	sales ticket and invoice handled by them or on behalf of them
266	show the correct name and address to whom sold and the number of
267	packages or cartons of each brand sold. It shall also be the
268	duty of said persons to see that each sales ticket or invoice
269	correctly shows whether the same is inside or outside of a
270	qualified municipality and if the sale is made within the limits
271	of a qualified municipality, the correct name of the
272	municipality must be indicated.
273	Section 7.  Subsection (1) of section 210.12, Florida
274	Statutes, is amended, subsections (2) through (6) of said
275	section are renumbered as subsections (4) through (8),
276	respectively, and new subsections (2) and (3) are added to said
277	section, to read:
278	210.12  Seizures; forfeiture proceedings.--
279	(1)  The state, acting by and through the division, shall
280	be authorized and empowered to seize, confiscate, and forfeit
281	for the use and benefit of the state, any cigarettes upon which
282	taxes payable hereunder may be unpaid or that are otherwise held
283	in violation of the requirements of this chapter, and also any
284	vending machine or receptacle in which such cigarettes upon
285	which taxes have not been paid are held for sale, or any vending
286	machine that does not have affixed thereto the identification
287	sticker required by the provisions of s. 210.07, or which does
288	not display at all times at least one package of each brand of
289	cigarettes located therein so the same is clearly visible and
290	arranged in such a manner that the cigarette tax stamp or meter
291	impression of the stamp affixed thereto is clearly visible. Such
292	seizure may be made by the division, its duly authorized
293	representative, any sheriff or deputy sheriff, or any police
294	officer.
295	(2)  All fixtures, equipment, and other materials and
296	personal property on the premises of any dealer, retail dealer,
297	or distributing agent who, with intent to defraud the state,
298	fails to keep or make any record, return, report, or inventory
299	required by this part; keeps or makes any false or fraudulent
300	record, return, report, or inventory required by this part;
301	refuses to pay any tax imposed by this part; or attempts in any
302	manner to evade or defeat the requirements of this part shall be
303	forfeited to the state as provided by the Florida Contraband
304	Forfeiture Act.
305	(3)  All cigarettes seized, confiscated, and forfeited to
306	the state under this part shall be destroyed.
307	Section 8.  Subsection (1) of section 210.15, Florida
308	Statutes, is amended to read:
309	210.15  Permits.--
310	(1)(a)  Every person, firm, or corporation desiring to
311	engage in business as a manufacturer, importer, exporter,
312	distributing agent, or wholesale dealer of cigarettes deal in
313	cigarettes as a distributing agent, wholesale dealer, or
314	exporter within this state shall file with the division an
315	application for a cigarette permit for each place of business
316	located within this state or, in the absence of such place of
317	business in this state, for wherever its principal place of
318	business is located with the Division of Alcoholic Beverages and
319	Tobacco. Every application for a cigarette permit shall be made
320	on forms furnished by the division and shall set forth the name
321	under which the applicant transacts or intends to transact
322	business, the location of the applicant's place of business
323	within the state, if any, and such other information as the
324	division may require. If the applicant has or intends to have
325	more than one place of business dealing in cigarettes within
326	this state, the application shall state the location of each
327	place of business. If the applicant is an association, the
328	application shall set forth the names and addresses of the
329	persons constituting the association, and if a corporation, the
330	names and addresses of the principal officers thereof and any
331	other information prescribed by the division for the purpose of
332	identification. The application shall be signed and verified by
333	oath or affirmation by the owner, if a natural person, and in
334	the case of an association or partnership, members or partners
335	thereof, and in the case of a corporation, by an executive
336	officer thereof or by any person specifically authorized by the
337	corporation to sign the application, to which shall be attached
338	the written evidence of this authority. The cigarette permit for
339	a distributing agent shall be issued annually for which an
340	annual fee of $5 shall be charged.
341	(b)  The holder of any duly issued, annual permit for a
342	distributing agent shall be entitled to a renewal of his or her
343	annual permit from year to year as a matter of course, on or
344	before July 1, upon making application to the division and upon
345	payment of this annual permit fee.
346	(b)(c)  Permits The permit for a distributing agent,
347	wholesale dealer, or exporter shall be issued only to persons of
348	good moral character, who are not less than 18 years of age.
349	Distributing agent, wholesale dealer, or exporter Permits to
350	corporations shall be issued only to corporations whose officers
351	are of good moral character and not less than 18 years of age.
352	There shall be no exemptions from the permit fees herein
353	provided to any persons, association of persons, or corporation,
354	any law to the contrary notwithstanding.
355	(c)  No distributing agent, wholesale dealer, or exporter
356	permit under this part or chapter 569 shall be issued,
357	maintained, or renewed if the applicant, its officers, or any
358	person or persons owning directly or indirectly, in the
359	aggregate, more than 10 percent of the ownership interests in
360	the applicant:
361	1.  Has been finally adjudicated as owing $500 or more in
362	delinquent cigarette taxes;
363	2.  Had a permit revoked by the division within the
364	previous 2 years;
365	3.  Has been convicted of selling stolen or counterfeit
366	cigarettes, receiving stolen cigarettes, or being involved in
367	the counterfeiting of cigarettes;
368	4.  to any person who Has been convicted within the past 5
369	years of any offense against the cigarette laws of this state or
370	who has been convicted in this state, any other state, or the
371	United States during the past 5 years of any offense designated
372	as a felony by such state or the United States, or to a
373	corporation, any of whose officers have been so convicted. The
374	term "convicted conviction" shall include an adjudication of
375	guilt on a plea of guilty or a plea of nolo contendere, or the
376	forfeiture of a bond when charged with a crime;.
377	5.  Has imported, or caused to be imported, into the United
378	States any cigarette in violation of 19 U.S.C. s. 1681a; or
379	6.  Has imported, or caused to be imported, into the United
380	States, or manufactured for sale or distribution in the United
381	States, any cigarette that does not fully comply with the
382	Federal Cigarette Labeling and Advertising Act (15 U.S.C. ss.
383	1331 et seq.).
384	(d)  The division may refuse to issue a distributing agent,
385	wholesale, or exporter permit to any person, firm, or
386	corporation whose permit under the cigarette law has been
387	revoked, or to any corporation, an officer of which has had his
388	or her permit under the cigarette law revoked, or to any person
389	who is or has been an officer of a corporation whose permit has
390	been revoked under the cigarette law. Any permit issued to a
391	firm or corporation prohibited from obtaining such permit under
392	the cigarette law may be revoked by the division.
393	(e)  Prior to an application for a distributing agent,
394	wholesale dealer, or exporter permit being approved, the
395	applicant shall file a set of fingerprints on forms provided by
396	the division. The applicant shall also file a set of
397	fingerprints for any person or persons interested directly or
398	indirectly with the applicant in the business for which the
399	permit is being sought, when so required by the division. If the
400	applicant or any person interested with the applicant, either
401	directly or indirectly, in the business for which the permit is
402	sought shall be such a person as is within the definition of
403	persons to whom a distributing agent, wholesale dealer, or
404	exporter permit shall be denied, then the application may be
405	denied by the division. If the applicant is a partnership, all
406	members of the partnership are required to file said
407	fingerprints, or if a corporation, all principal officers of the
408	corporation are required to file said fingerprints. The
409	cigarette permit for a manufacturer, importer, distributing
410	agent, wholesale dealer, or exporter shall be originally issued
411	at a fee of $100, which sum is to cover the cost of the
412	investigation required before issuing such permit.
413	(f)  The cigarette permits issued under this section permit
414	for a wholesale dealer or exporter shall be renewed from year to
415	year as a matter of course, at an annual cost of $100, on or
416	before July 1, upon making application to the division and upon
417	payment of the annual renewal fee.
418	(g)  Permittees, by acceptance of their permits, agree that
419	their places of business or vehicles transporting cigarettes
420	shall always be subject to be inspected and searched without a
421	search warrant for the purpose of ascertaining that all
422	provisions of this part are complied with by authorized
423	employees of the division and also by sheriffs, deputy sheriffs,
424	and police officers during business hours or during any other
425	time such premises are occupied by the permittee or other
426	persons. Retail cigarette dealers and manufacturers'
427	representatives, by dealing in cigarettes, agree that their
428	places of business or vehicles transporting cigarettes shall
429	always be subject to inspection and search without a search
430	warrant for the purpose of ascertaining that all provisions of
431	this part are complied with by authorized employees of the
432	division and also by sheriffs, deputy sheriffs, and police
433	officers during business hours or other times when the premises
434	are occupied by the retail dealer or manufacturers'
435	representatives or other persons.
436	(h)  No retail sales of cigarettes may be made at a
437	location for which a wholesale dealer, distributing agent, or
438	exporter permit has been issued. The excise tax on sales made to
439	any traveling location, such as an itinerant store or industrial
440	caterer, shall be paid into the General Revenue Fund
441	unallocated. Cigarettes may be purchased for retail purposes
442	only from a person holding a wholesale dealer permit. The
443	invoice for the purchase of cigarettes must show the place of
444	business for which the purchase is made and the cigarettes
445	cannot be transferred to any other place of business for the
446	purpose of resale.
447	Section 9.  Section 210.16, Florida Statutes, is amended to
448	read:
449	210.16  Revocation or suspension of permit.--
450	(1)  The Division of Alcoholic Beverages and Tobacco is
451	given full power and authority to revoke the permit of any
452	person wholesale dealer receiving a permit to engage in business
453	under this part or chapter 569 for violation of any of the
454	provisions of this part or chapter 569.
455	(2)  The division shall revoke the permit or permits of any
456	person who would be ineligible to obtain a new license or renew
457	a license by reason of any of the conditions for permitting
458	provided in s. 210.15(1)(c)1.-6.
459	(3)(2)  The division may suspend for a reasonable period of
460	time or revoke, in its discretion, the permits of wholesale
461	dealers issued under the provisions of this part or chapter 569
462	to any person who has violated any other provision of this part
463	or chapter 569 for the same causes and under the same
464	limitations as is authorized hereunder to revoke the permits of
465	such wholesale dealers.
466	(4)(3)  No person wholesale dealer whose permit for any
467	place of business has been revoked shall engage in business
468	under this part or chapter 569 at such place of business after
469	such revocation until a new permit is issued. No person
470	wholesale dealer whose permit for any place of business has been
471	revoked shall be permitted to have said permit renewed, or to
472	obtain an additional cigarette permit for any other place of
473	business, for a period of 2 years 6 months after the date such
474	revocation becomes final.
475	(5)(4)  In addition to lieu of the suspension or revocation
476	of permits, the division may impose civil penalties against
477	holders of permits for violations of this part or rules and
478	regulations relating thereto. No civil penalty so imposed shall
479	exceed $2,500 $1,000 for each offense, and all amounts collected
480	shall be deposited with the Chief Financial Officer to the
481	credit of the General Revenue Fund. If the holder of the permit
482	fails to pay the civil penalty, his or her permit shall be
483	suspended for such period of time as the division may specify.
484	Section 10.  Subsections (2), (3), and (7) of section
485	210.18, Florida Statutes, are amended, and subsections (9) and
486	(10) are added to said section, to read:
487	210.18  Penalties for tax evasion; reports by sheriffs.--
488	(2)  Except as otherwise provided in this section, any
489	person wholesale or retail dealer who fails, neglects, or
490	refuses to comply with, or violates the provisions of, this part
491	or the rules adopted and regulations promulgated by the division
492	under this part commits is guilty of a misdemeanor of the first
493	degree, punishable as provided in s. 775.082 or s. 775.083. Any
494	person wholesale or retail dealer who has been convicted of a
495	violation of any provision of the cigarette tax law and who is
496	thereafter convicted of a further violation of the cigarette tax
497	law is, upon conviction of such further offense, guilty of a
498	felony of the third degree, punishable as provided in s.
499	775.082, s. 775.083, or s. 775.084.
500	(3)  Any person who falsely or fraudulently makes, forges,
501	alters, or counterfeits any stamp or impression die used in
502	meter machines prescribed by the division under the provisions
503	of this part; or, with intent to evade taxes, jams, tampers
504	with, or alters such a machine; or causes or procures to be
505	falsely or fraudulently made, forged, altered, or counterfeited
506	any such stamp or die; or knowingly and willfully utters,
507	purchases, passes or tenders as true any such false, altered, or
508	counterfeited stamp or die impression; or, with the intent to
509	defraud the state, fails to comply with any other requirement of
510	this part commits is guilty of a felony of the third degree,
511	punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
512	(7)  Any sheriff, deputy sheriff, or police officer, or
513	state law enforcement officer, upon the seizure of any unstamped
514	cigarettes under this section, shall promptly report such
515	seizure to the division or its representative, together with a
516	description of all such unstamped cigarettes seized, so that the
517	state may be kept informed as to the size and magnitude of the
518	illicit cigarette business. The division shall keep records
519	showing the number of seizures and seized cigarettes reported
520	to, or seized by, the division.
521	(9)  Notwithstanding any other provision of law, the sale
522	or possession for sale of counterfeit cigarettes by any person
523	or by a manufacturer, importer, distributing agent, wholesale
524	dealer, or retail dealer shall result in the seizure of the
525	product and related machinery by the division or any law
526	enforcement agency.
527	(10)  It is unlawful to sell or possess with the intent to
528	sell counterfeit cigarettes, as defined in s. 210.01(22).
529	(a)  A person who does not hold a permit or holds a retail
530	permit under the provisions of this chapter and who violates
531	this subsection commits a felony of the third degree, punishable
532	as provided in s. 775.082, s. 775.083, or s. 775.084, and is
533	subject to the imposition of fines and additional penalties as
534	follows:
535	1.  If the quantity of counterfeit cigarettes sold or
536	possessed with the intent to sell is less than two cartons or
537	the equivalent, the fine for a first violation shall not exceed
538	$1,000 or five times the retai1 value of the counterfeit
539	cigarettes, whichever is greater. A subsequent violation may
540	result in the imposition of a fine not to exceed $5,000 or five
541	times the retail value of the counterfeit cigarettes, whichever
542	is greater, and shall result in revocation of the retail permit
543	by the division.
544	2.  If the quantity of counterfeit cigarettes sold or
545	possessed with the intent to sell is two cartons or more or the
546	equivalent, the fine for a first violation shall not exceed
547	$2,000 or five times the retail value of the counterfeit
548	cigarettes, whichever is greater. A subsequent violation may
549	result in the imposition of a fine not to exceed $50,000 or five
550	times the retail value of the counterfeit cigarettes, whichever
551	is greater, and shall result in revocation of the retail permit
552	by the division.
553	(b)  A person who holds a permit, other than a retail
554	permit, under the provisions of this chapter and who violates
555	this subsection commits a felony of the third degree, punishable
556	as provided in s. 775.082, s. 775.083, or s. 775.084, and is
557	subject to the imposition of fines and additional penalties as
558	follows:
559	1.  If the quantity of counterfeit cigarettes sold or
560	possessed with the intent to sell is less than 10 cartons or the
561	equivalent, the fine for a first violation shall not exceed
562	$1,000 or five times the retail value of the counterfeit
563	cigarettes, whichever is greater. A subsequent violation may
564	result in the imposition of a fine not to exceed $5,000 or five
565	times the retail value of the counterfeit cigarettes, whichever
566	is greater, and shall result in revocation of the permit by the
567	division.
568	2.  If the quantity of counterfeit cigarettes sold or
569	possessed with the intent to sell is 10 cartons or more or the
570	equivalent, the fine for a first violation shall not exceed
571	$2,000 or five times the retail value of the counterfeit
572	cigarettes, whichever is greater. A subsequent violation may
573	result in the imposition of a fine not to exceed $50,000 or five
574	times the retail value of the counterfeit cigarettes, whichever
575	is greater, and shall result in revocation of the permit by the
576	division.
577
578	For purposes of this subsection, any counterfeit cigarettes
579	seized by the division shall be destroyed.
580	Section 11.  Section 210.181, Florida Statutes, is created
581	to read:
582	210.181  Civil penalties.--
583	(1)  Except as provided in s. 210.16(5), whoever knowingly
584	omits, neglects, or refuses to comply with any duty imposed upon
585	him or her by this part, or to do or cause to be done any of the
586	things required by this part, or does anything prohibited by
587	this part shall, in addition to any other penalty provided in
588	this part, be liable for a fine of $1,000 or five times the
589	retail value of the cigarettes involved, whichever is greater.
590	(2)  Whoever fails to pay any tax imposed by this part at
591	the time prescribed by law or rules shall, in addition to any
592	other penalty provided in this part, be liable for a penalty of
593	five times the unpaid tax due.
594	Section 12.  For the purpose of incorporating the amendment
595	to section 210.18, Florida Statutes, in a reference thereto,
596	paragraph (a) of subsection (1) of section 772.102, Florida
597	Statutes, is reenacted to read:
598	772.102  Definitions.--As used in this chapter, the term:
599	(1)  "Criminal activity" means to commit, to attempt to
600	commit, to conspire to commit, or to solicit, coerce, or
601	intimidate another person to commit:
602	(a)  Any crime which is chargeable by indictment or
603	information under the following provisions:
604	1.  Section 210.18, relating to evasion of payment of
605	cigarette taxes.
606	2.  Section 414.39, relating to public assistance fraud.
607	3.  Section 440.105 or s. 440.106, relating to workers'
608	compensation.
609	4.  Part IV of chapter 501, relating to telemarketing.
610	5.  Chapter 517, relating to securities transactions.
611	6.  Section 550.235, s. 550.3551, or s. 550.3605, relating
612	to dogracing and horseracing.
613	7.  Chapter 550, relating to jai alai frontons.
614	8.  Chapter 552, relating to the manufacture, distribution,
615	and use of explosives.
616	9.  Chapter 562, relating to beverage law enforcement.
617	10.  Section 624.401, relating to transacting insurance
618	without a certificate of authority, s. 624.437(4)(c)1., relating
619	to operating an unauthorized multiple-employer welfare
620	arrangement, or s. 626.902(1)(b), relating to representing or
621	aiding an unauthorized insurer.
622	11.  Chapter 687, relating to interest and usurious
623	practices.
624	12.  Section 721.08, s. 721.09, or s. 721.13, relating to
625	real estate timeshare plans.
626	13.  Chapter 782, relating to homicide.
627	14.  Chapter 784, relating to assault and battery.
628	15.  Chapter 787, relating to kidnapping.
629	16.  Chapter 790, relating to weapons and firearms.
630	17.  Section 796.03, s. 796.04, s. 796.05, or s. 796.07,
631	relating to prostitution.
632	18.  Chapter 806, relating to arson.
633	19.  Section 810.02(2)(c), relating to specified burglary
634	of a dwelling or structure.
635	20.  Chapter 812, relating to theft, robbery, and related
636	crimes.
637	21.  Chapter 815, relating to computer-related crimes.
638	22.  Chapter 817, relating to fraudulent practices, false
639	pretenses, fraud generally, and credit card crimes.
640	23.  Section 827.071, relating to commercial sexual
641	exploitation of children.
642	24.  Chapter 831, relating to forgery and counterfeiting.
643	25.  Chapter 832, relating to issuance of worthless checks
644	and drafts.
645	26.  Section 836.05, relating to extortion.
646	27.  Chapter 837, relating to perjury.
647	28.  Chapter 838, relating to bribery and misuse of public
648	office.
649	29.  Chapter 843, relating to obstruction of justice.
650	30.  Section 847.011, s. 847.012, s. 847.013, s. 847.06, or
651	s. 847.07, relating to obscene literature and profanity.
652	31.  Section 849.09, s. 849.14, s. 849.15, s. 849.23, or s.
653	849.25, relating to gambling.
654	32.  Chapter 893, relating to drug abuse prevention and
655	control.
656	33.  Section 914.22 or s. 914.23, relating to witnesses,
657	victims, or informants.
658	34.  Section 918.12 or s. 918.13, relating to tampering
659	with jurors and evidence.
660	Section 13.  For the purpose of incorporating the amendment
661	to section 210.18, Florida Statutes, in a reference thereto,
662	paragraph (a) of subsection (1) of section 895.02, Florida
663	Statutes, is reenacted to read:
664	895.02  Definitions.--As used in ss. 895.01-895.08, the
665	term:
666	(1)  "Racketeering activity" means to commit, to attempt to
667	commit, to conspire to commit, or to solicit, coerce, or
668	intimidate another person to commit:
669	(a)  Any crime which is chargeable by indictment or
670	information under the following provisions of the Florida
671	Statutes:
672	1.  Section 210.18, relating to evasion of payment of
673	cigarette taxes.
674	2.  Section 403.727(3)(b), relating to environmental
675	control.
676	3.  Section 409.920 or s. 409.9201, relating to Medicaid
677	fraud.
678	4.  Section 414.39, relating to public assistance fraud.
679	5.  Section 440.105 or s. 440.106, relating to workers'
680	compensation.
681	6.  Section 465.0161, relating to distribution of medicinal
682	drugs without a permit as an Internet pharmacy.
683	7.  Sections 499.0051, 499.0052, 499.00535, 499.00545, and
684	499.0691, relating to crimes involving contraband and
685	adulterated drugs.
686	8.  Part IV of chapter 501, relating to telemarketing.
687	9.  Chapter 517, relating to sale of securities and
688	investor protection.
689	10.  Section 550.235, s. 550.3551, or s. 550.3605, relating
690	to dogracing and horseracing.
691	11.  Chapter 550, relating to jai alai frontons.
692	12.  Chapter 552, relating to the manufacture,
693	distribution, and use of explosives.
694	13.  Chapter 560, relating to money transmitters, if the
695	violation is punishable as a felony.
696	14.  Chapter 562, relating to beverage law enforcement.
697	15.  Section 624.401, relating to transacting insurance
698	without a certificate of authority, s. 624.437(4)(c)1., relating
699	to operating an unauthorized multiple-employer welfare
700	arrangement, or s. 626.902(1)(b), relating to representing or
701	aiding an unauthorized insurer.
702	16.  Section 655.50, relating to reports of currency
703	transactions, when such violation is punishable as a felony.
704	17.  Chapter 687, relating to interest and usurious
705	practices.
706	18.  Section 721.08, s. 721.09, or s. 721.13, relating to
707	real estate timeshare plans.
708	19.  Chapter 782, relating to homicide.
709	20.  Chapter 784, relating to assault and battery.
710	21.  Chapter 787, relating to kidnapping.
711	22.  Chapter 790, relating to weapons and firearms.
712	23.  Section 796.03, s. 796.035, s. 796.04, s. 796.045, s.
713	796.05, or s. 796.07, relating to prostitution and sex
714	trafficking.
715	24.  Chapter 806, relating to arson.
716	25.  Section 810.02(2)(c), relating to specified burglary
717	of a dwelling or structure.
718	26.  Chapter 812, relating to theft, robbery, and related
719	crimes.
720	27.  Chapter 815, relating to computer-related crimes.
721	28.  Chapter 817, relating to fraudulent practices, false
722	pretenses, fraud generally, and credit card crimes.
723	29.  Chapter 825, relating to abuse, neglect, or
724	exploitation of an elderly person or disabled adult.
725	30.  Section 827.071, relating to commercial sexual
726	exploitation of children.
727	31.  Chapter 831, relating to forgery and counterfeiting.
728	32.  Chapter 832, relating to issuance of worthless checks
729	and drafts.
730	33.  Section 836.05, relating to extortion.
731	34.  Chapter 837, relating to perjury.
732	35.  Chapter 838, relating to bribery and misuse of public
733	office.
734	36.  Chapter 843, relating to obstruction of justice.
735	37.  Section 847.011, s. 847.012, s. 847.013, s. 847.06, or
736	s. 847.07, relating to obscene literature and profanity.
737	38.  Section 849.09, s. 849.14, s. 849.15, s. 849.23, or s.
738	849.25, relating to gambling.
739	39.  Chapter 874, relating to criminal street gangs.
740	40.  Chapter 893, relating to drug abuse prevention and
741	control.
742	41.  Chapter 896, relating to offenses related to financial
743	transactions.
744	42.  Sections 914.22 and 914.23, relating to tampering with
745	a witness, victim, or informant, and retaliation against a
746	witness, victim, or informant.
747	43.  Sections 918.12 and 918.13, relating to tampering with
748	jurors and evidence.
749	Section 14.  This act shall take effect October 1, 2005.

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