HB 0205

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

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