Senate Bill sb0816

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    Florida Senate - 2005                                   SB 816

    By Senator Haridopolos





    26-317A-05

  1                      A bill to be entitled

  2         An act relating to the transportation and sale

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

  4         revising and providing definitions; amending s.

  5         210.06, F.S.; revising requirements for and

  6         limitations on the affixation of stamps;

  7         providing requirements with respect to receipt,

  8         possession, storage, and transport of unstamped

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

10         requiring manufacturers, importers,

11         distributing agents, dealers, and retail

12         dealers to hold a current, valid permit to

13         sell, distribute, or receive cigarettes;

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

15         filing guidelines for certain persons shipping

16         unstamped cigarette packages; authorizing

17         certain law enforcement officials to inspect

18         certain shipping vehicles; requiring

19         manufacturers and importers to keep records of

20         cigarettes received, sold, and delivered and to

21         keep daily sales tickets of cigarette sales;

22         authorizing the Division of Alcoholic Beverages

23         and Tobacco of the Department of Business and

24         Professional Regulation to examine records and

25         equipment of any manufacturer or importer of

26         cigarettes; amending s. 210.12, F.S.;

27         authorizing the state to claim certain property

28         and materials from certain dealers and

29         retailers who attempt to defraud the state;

30         authorizing the destruction of certain

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

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 1         criteria for permit applications; prohibiting

 2         the issuance, maintenance, or renewal of

 3         certain permits for certain applicants;

 4         providing guidelines for permit application

 5         denial; amending s. 210.16, F.S.; authorizing

 6         the division to revoke a person's permit for

 7         certain violations; prohibiting a person whose

 8         permit has been revoked from engaging in

 9         business; prohibiting a person whose permit has

10         been revoked from renewing or obtaining a new

11         permit for a certain period of time;

12         authorizing the division to impose a civil

13         penalty not to exceed a certain dollar amount

14         in addition to revocation of a permit; amending

15         s. 210.18, F.S.; expanding the group of

16         violators subject to criminal liability;

17         prohibiting the sale or possession for sale of

18         counterfeit cigarettes; providing penalties;

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

20         penalties for failure to comply with certain

21         duties or pay certain taxes; reenacting ss.

22         772.102(1)(a) and 895.02(1)(a), F.S., relating

23         to crimes constituting a "criminal activity"

24         and definitions as used in the Florida RICO

25         Act, to incorporate the amendment to s. 210.18,

26         F.S., in references thereto; providing an

27         effective date.

28  

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

30  

31  

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

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

 3  (22) are added to that section, to read:

 4         210.01  Definitions.--When used in this part the

 5  following words shall have the meaning herein indicated:

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

 7  or outside this state who sells cigarettes to retail dealers

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

 9  who operates more than one cigarette vending machine located

10  in more than one place of business. The term does not include

11  any cigarette manufacturer, export warehouse proprietor, or

12  importer with a valid permit under 26 U.S.C. s. 5712 if such

13  person sells or distributes cigarettes in this state only to

14  dealers who are agents and who hold valid and current permits

15  under s. 210.15 or to any cigarette manufacturer, export

16  warehouse proprietor, or importer who holds a valid and

17  current permit under 26 U.S.C. s. 5712.

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

19  outside this state other than a wholesale dealer engaged in

20  the business of selling cigarettes, including persons licensed

21  pursuant to s. 569.003.

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

23  be placed on cigarette packages that evidences payment of the

24  tax on cigarettes under s. 210.02.

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

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

27  directly or indirectly, a finished cigarette for sale or

28  distribution.

29         (21)  "Manufacturer" means any domestic or foreign

30  person or entity that manufactures, fabricates, assembles,

31  processes, or labels a finished cigarette.

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 1         (22)  "Counterfeit cigarettes" means cigarettes that

 2  have false manufacturing labels, tobacco product packs with

 3  counterfeit tax stamps, or any combination thereof.

 4         Section 2.  Subsection (1) of section 210.06, Florida

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

 6  section, to read:

 7         210.06  Affixation of stamps; presumption.--

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

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

10  such cigarettes such, stamps as are required under this

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

12  outside this state shall affix such stamps before the shipment

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

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

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

16  otherwise disposed of in the state.

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

18  packages intended for sale or distribution to consumers

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

20  otherwise provided in this part.

21         (b)  A stamp may not be applied to any cigarette

22  package exempt from tax under 26 U.S.C. s. 5704 which is

23  distributed by a manufacturer pursuant to federal regulations.

24         (c)  Dealers may apply stamps only to cigarette

25  packages received directly from a manufacturer or importer of

26  cigarettes who possesses a valid and current permit under 26

27  U.S.C. s. 5712.

28         (5)  Except as provided in s. 210.09(1), a person,

29  other than a dealer that receives unstamped cigarette packages

30  directly from a cigarette manufacturer or importer in

31  accordance with this section and s. 210.085, may not hold or

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 1  possess an unstamped cigarette package. Dealers shall be

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

 3  such part of the dealer's stock which is identified for sale

 4  or distribution outside this state. If a dealer maintains

 5  stocks of unstamped cigarette packages, such unstamped

 6  packages shall be stored separately from stamped product

 7  packages. Unstamped cigarette packages may not be transferred

 8  by a dealer to another facility of the dealer within this

 9  state or to another person within this state.

10         Section 3.  Section 210.085, Florida Statutes, is

11  created to read:

12         210.085  Transactions only with permitted

13  manufacturers, importers, distributing agents, dealers, and

14  retail dealers.--A manufacturer, importer, or a distributing

15  agent representing a manufacturer or importer may sell or

16  distribute cigarettes to a person located or doing business

17  within this state only if such person is a dealer or importer

18  with a valid, current permit under s. 210.15. An importer may

19  obtain cigarettes only from a licensed manufacturer. A dealer

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

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

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

23  dealer may obtain cigarettes only from a manufacturer or

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

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

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

27  cigarettes only from a dealer with a valid, current permit

28  under s. 210.15.

29         Section 4.  Subsections (1), (3), and (4) of section

30  210.09, Florida Statutes, are amended to read:

31  

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 1         210.09  Records to be kept; reports to be made;

 2  examination.--

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

 4  unstamped cigarettes upon the public highways, roads, or

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

 6  actual possession invoices or delivery tickets for such

 7  cigarettes.  The absence of such invoices or delivery tickets

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

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

10  part.

11         (b)  Any person who ships unstamped cigarette packages

12  into this state other than to a manufacturer, importer, or

13  dealer holding a valid, current permit pursuant to s. 210.15

14  shall first file with the division a notice of such shipment.

15  This paragraph does not apply to any common or contract

16  carrier that is transporting cigarettes through this state to

17  another location outside this state under a proper bill of

18  lading or freight bill that states the quantity, source, and

19  destination of such cigarettes.

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

21  authorized agent, or any law enforcement officer of this

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

23  vehicle is transporting cigarettes in violation of this part,

24  the division, such agent, or such law enforcement officer may

25  stop such vehicle and inspect the vehicle for contraband

26  cigarettes.

27         (3)  All manufacturers, importers, distributing agents,

28  wholesale dealers, agents, or retail dealers shall maintain

29  and keep for a period of 3 years at the place of business

30  where any transaction takes place, such records of cigarettes

31  received, sold, or delivered within the state as may be

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 1  required by the division.  The division or its duly authorized

 2  representative may is hereby authorized to examine the books,

 3  papers, invoices, and other records;, the stock of cigarettes

 4  in and upon any premises where the same are placed, stored,

 5  and sold;, and the equipment of any such manufacturers,

 6  importers, distributing agents, wholesale dealers, agents, or

 7  retail dealers, pertaining to the sale and delivery of

 8  cigarettes taxable under this part. To verify the accuracy of

 9  the tax imposed and assessed by this part, each person shall

10  is hereby directed and required to give to the division or its

11  duly authorized representatives the means, facilities, and

12  opportunity for such examinations as are herein provided for

13  and required in this section.

14         (4)(a)  All persons who are either cigarette

15  manufacturers, importers, wholesalers, vending machine

16  operators or distributing agents, and agents and employees of

17  the same, shall are required to keep daily sales tickets or

18  invoices of cigarette sales and it shall be the duty of said

19  persons to see that each sales ticket and invoice handled by

20  them or on behalf of them show the correct name and address to

21  whom sold and the number of packages or cartons of each brand

22  sold.  It shall also be the duty of said persons to see that

23  each sales ticket or invoice correctly shows whether the same

24  is inside or outside of a qualified municipality and if the

25  sale is made within the limits of a qualified municipality,

26  the correct name of the municipality must be indicated.

27         (b)  The division shall suspend or revoke the license

28  of any person who is either a cigarette wholesaler, vending

29  machine operator, or distributing agent upon sufficient cause

30  appearing that the said persons, their agents, or employees

31  

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 1  have failed to keep daily sales tickets or invoices in

 2  accordance with this section.

 3         Section 5.  Subsection (1) of section 210.12, Florida

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

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

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

 7  that section, to read:

 8         210.12  Seizures; forfeiture proceedings.--

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

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

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

12  upon which taxes payable hereunder may be unpaid or which are

13  otherwise held in violation of the requirements of this

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

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

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

17  thereto the identification sticker required by the provisions

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

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

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

21  cigarette tax stamp or meter impression of the stamp affixed

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

23  division, its duly authorized representative, any sheriff or

24  deputy sheriff, or any police officer.

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

26  personal property on the premises of any dealer or retail

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

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

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

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

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

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

 2  the state.

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

 4  to the state under this part shall be destroyed.

 5         Section 6.  Subsection (1) of section 210.15, Florida

 6  Statutes, is amended to read:

 7         210.15  Permits.--

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

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

10  distributing agent, or wholesale dealer of cigarettes deal in

11  cigarettes as a distributing agent, wholesale dealer, or

12  exporter within this state shall file with the division an

13  application for a cigarette permit for each place of business

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

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

16  business is located with the Division of Alcoholic Beverages

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

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

19  the name under which the applicant transacts or intends to

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

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

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

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

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

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

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

27  persons constituting the association, and if a corporation,

28  the names and addresses of the principal officers thereof and

29  any other information prescribed by the division for the

30  purpose of identification. The application shall be signed and

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

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

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

 3  by an executive officer thereof or by any person specifically

 4  authorized by the corporation to sign the application, to

 5  which shall be attached the written evidence of this

 6  authority. The cigarette permit for a distributing agent shall

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

 8  charged.

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

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

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

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

13  upon payment of this annual permit fee.

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

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

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

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

18  to corporations shall be issued only to corporations whose

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

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

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

22  or corporation, any law to the contrary notwithstanding.

23         (d)  A No distributing agent, wholesale dealer, or

24  exporter permit may not shall be issued, maintained, or

25  renewed under this part or chapter 569 if the applicant, its

26  officers, or any person or persons owning directly or

27  indirectly, in the aggregate, more than 10 percent of the

28  ownership interests in the applicant:

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

30  

31  

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 1         2.  Had a cigarette manufacturer, importer, retail

 2  dealer, or dealer permit revoked by the division within the

 3  previous 2 years;

 4         3.  Has been convicted of selling stolen or counterfeit

 5  cigarettes, receiving stolen cigarettes, or being involved in

 6  the counterfeiting of cigarettes;

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

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

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

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

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

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

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

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

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

16  crime;.

17         5.  Has imported or caused to be imported into the

18  United States any cigarette in violation of 19 U.S.C. 1681a;

19  or

20         6.  Has imported or caused to be imported into the

21  United States, or manufactured for sale or distribution in the

22  United States, any cigarette that does not fully comply with

23  the Federal Cigarette Labeling and Advertising Act, 15 U.S.C.

24  1331 et seq.

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

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

27  corporation whose permit under the cigarette law has been

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

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

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

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

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 1  issued to a firm or corporation prohibited from obtaining such

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

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

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

 5  the applicant shall file a set of fingerprints on forms

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

 7  of fingerprints for any person or persons interested directly

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

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

10  the applicant or any person interested with the applicant,

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

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

13  definition of persons to whom a distributing agent, wholesale

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

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

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

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

18  officers of the corporation are required to file said

19  fingerprints. The cigarette permit for a wholesale dealer or

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

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

22  issuing such permit.

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

24  permit for a wholesale dealer or exporter shall be renewed

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

26  $100, on or before July 1, upon making application to the

27  division and upon payment of the annual renewal fee.

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

29  agree that their places of business or vehicles transporting

30  cigarettes shall always be subject to be inspected and

31  searched without a search warrant for the purpose of

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 1  ascertaining that all provisions of this part are complied

 2  with by authorized employees of the division and also by

 3  sheriffs, deputy sheriffs, and police officers during business

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

 5  the permittee or other persons. Retail cigarette dealers and

 6  manufacturers' representatives, by dealing in cigarettes,

 7  agree that their places of business or vehicles transporting

 8  cigarettes shall always be subject to inspection and search

 9  without a search warrant for the purpose of ascertaining that

10  all provisions of this part are complied with by authorized

11  employees of the division and also by sheriffs, deputy

12  sheriffs, and police officers during business hours or other

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

14  manufacturers' representatives or other persons.

15         (i)(h)  No Retail sales of cigarettes may not be made

16  at a location for which a wholesale dealer, distributing

17  agent, or exporter permit has been issued. The excise tax on

18  sales made to any traveling location, such as an itinerant

19  store or industrial caterer, shall be paid into the General

20  Revenue Fund unallocated. Cigarettes may be purchased for

21  retail purposes only from a person holding a wholesale dealer

22  permit. The invoice for the purchase of cigarettes must show

23  the place of business for which the purchase is made and the

24  cigarettes cannot be transferred to any other place of

25  business for the purpose of resale.

26         Section 7.  Section 210.16, Florida Statutes, is

27  amended to read:

28         210.16  Revocation or suspension of permit.--

29         (1)  The Division of Alcoholic Beverages and Tobacco

30  may is given full power and authority to revoke the permit of

31  any person wholesale dealer receiving a permit to engage in

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 1  business under this part or chapter 569 for violation of any

 2  of the provisions of this part.

 3         (2)  The division shall revoke the permit of any person

 4  who would be ineligible to obtain or to renew a license by

 5  reason of any of the conditions for permitting provided in s.

 6  210.15(1)(d)1.-5.

 7         (3)(2)  The division may suspend for a reasonable

 8  period of time or revoke, in its discretion, the permits of

 9  wholesale dealers issued under the provisions of this part or

10  chapter 569 to any person who has violated any other provision

11  of this part for the same causes and under the same

12  limitations as is authorized hereunder to revoke the permits

13  of such wholesale dealers.

14         (4)(3)  A person No wholesale dealer whose permit for

15  any place of business has been revoked may not shall engage in

16  business under this part or chapter 569 at such place of

17  business after such revocation until a new permit is issued. A

18  person No wholesale dealer whose permit for any place of

19  business has been revoked may not shall be permitted to have

20  the said permit renewed, and may not or to obtain an

21  additional cigarette permit for any other place of business,

22  for a period of 2 years 6 months after the date such

23  revocation becomes final.

24         (5)(4)  In addition to lieu of the suspension or

25  revocation of permits, the division may impose civil penalties

26  against holders of permits for violations of this part or

27  rules and regulations relating thereto. A No civil penalty so

28  imposed may not shall exceed $2,500 $1,000 for each offense,

29  and all amounts collected shall be deposited with the Chief

30  Financial Officer to the credit of the General Revenue Fund.

31  If the holder of the permit fails to pay the civil penalty,

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 1  his or her permit shall be suspended for such period of time

 2  as the division may specify.

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

 4  210.18, Florida Statutes, are amended, and subsection (9) is

 5  added to that section, to read:

 6         210.18  Penalties for tax evasion; reports by

 7  sheriffs.--

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

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

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

11  part or the rules adopted and regulations promulgated by the

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

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

14  775.083. Any person wholesale or retail dealer who has been

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

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

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

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

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

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

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

22  used in meter machines prescribed by the division under the

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

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

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

26  counterfeited any such stamp or die; or knowingly and

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

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

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

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

31  

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

 2  775.082, s. 775.083, or s. 775.084.

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

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

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

 6  removing, depositing, or concealing of, any unstamped

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

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

 9  775.082 or s. 775.083. In lieu of the penalties provided in

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

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

12  authorized under s. 210.02 on the unstamped cigarettes.

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

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

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

16  removing, depositing, or concealing of, any unstamped

17  cigarettes in excess of 50 cartons is presumed to have

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

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

20  775.082, s. 775.083, or s. 775.084.

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

22  possessing not in excess of three cartons of such cigarettes

23  purchased by such possessor outside the state in accordance

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

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

26  cigarettes were purchased outside the state and in accordance

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

28  be upon the possessor of such cigarettes.

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

30  sale or possession for sale of counterfeit cigarettes by any

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

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

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

 3  law enforcement agency and shall be punishable as follows:

 4         (a)1.  A first violation with a total quantity of fewer

 5  than two cartons of cigarettes or the equivalent amount of

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

 7  $1,000 or five times the retail value of the cigarettes

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

 9  5 years, or both.

10         2.  A subsequent violation with a total quantity of

11  fewer than two cartons of cigarettes or the equivalent amount

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

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

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

15  5 years, or both, and shall also result in the revocation by

16  the division of the permit of the manufacturer, importer,

17  distributing agent, wholesale dealer, or retail dealer.

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

19  or more cartons of cigarettes or the equivalent amount of

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

21  $2,000 or five times the retail value of the cigarettes

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

23  5 years, or both.

24         2.  A subsequent violation with a quantity of two

25  cartons of cigarettes or more or the equivalent amount of

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

27  $50,000 or five times the retail value of the cigarettes

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

29  5 years, or both, and shall also result in the revocation by

30  the division of the permit of the manufacturer, importer,

31  distributing agent, wholesale dealer, or retail dealer.

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 1  

 2  For purposes of this subsection, any counterfeit cigarettes

 3  seized by the division shall be destroyed.

 4         Section 9.  Section 210.181, Florida Statutes, is

 5  created to read:

 6         210.181  Civil penalties.--

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

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

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

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

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

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

13  cigarettes involved, whichever is greater.

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

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

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

17  penalty of five times the unpaid tax due.

18         Section 10.  For the purpose of incorporating the

19  amendment made by this act to section 210.18, Florida

20  Statutes, in a reference thereto, paragraph (a) of subsection

21  (1) of section 772.102, Florida Statutes, is reenacted to

22  read:

23         772.102  Definitions.--As used in this chapter, the

24  term:

25         (1)  "Criminal activity" means to commit, to attempt to

26  commit, to conspire to commit, or to solicit, coerce, or

27  intimidate another person to commit:

28         (a)  Any crime which is chargeable by indictment or

29  information under the following provisions:

30         1.  Section 210.18, relating to evasion of payment of

31  cigarette taxes.

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 1         2.  Section 414.39, relating to public assistance

 2  fraud.

 3         3.  Section 440.105 or s. 440.106, relating to workers'

 4  compensation.

 5         4.  Part IV of chapter 501, relating to telemarketing.

 6         5.  Chapter 517, relating to securities transactions.

 7         6.  Section 550.235, s. 550.3551, or s. 550.3605,

 8  relating to dogracing and horseracing.

 9         7.  Chapter 550, relating to jai alai frontons.

10         8.  Chapter 552, relating to the manufacture,

11  distribution, and use of explosives.

12         9.  Chapter 562, relating to beverage law enforcement.

13         10.  Section 624.401, relating to transacting insurance

14  without a certificate of authority, s. 624.437(4)(c)1.,

15  relating to operating an unauthorized multiple-employer

16  welfare arrangement, or s. 626.902(1)(b), relating to

17  representing or aiding an unauthorized insurer.

18         11.  Chapter 687, relating to interest and usurious

19  practices.

20         12.  Section 721.08, s. 721.09, or s. 721.13, relating

21  to real estate timeshare plans.

22         13.  Chapter 782, relating to homicide.

23         14.  Chapter 784, relating to assault and battery.

24         15.  Chapter 787, relating to kidnapping.

25         16.  Chapter 790, relating to weapons and firearms.

26         17.  Section 796.03, s. 796.04, s. 796.05, or s.

27  796.07, relating to prostitution.

28         18.  Chapter 806, relating to arson.

29         19.  Section 810.02(2)(c), relating to specified

30  burglary of a dwelling or structure.

31  

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 1         20.  Chapter 812, relating to theft, robbery, and

 2  related crimes.

 3         21.  Chapter 815, relating to computer-related crimes.

 4         22.  Chapter 817, relating to fraudulent practices,

 5  false pretenses, fraud generally, and credit card crimes.

 6         23.  Section 827.071, relating to commercial sexual

 7  exploitation of children.

 8         24.  Chapter 831, relating to forgery and

 9  counterfeiting.

10         25.  Chapter 832, relating to issuance of worthless

11  checks and drafts.

12         26.  Section 836.05, relating to extortion.

13         27.  Chapter 837, relating to perjury.

14         28.  Chapter 838, relating to bribery and misuse of

15  public office.

16         29.  Chapter 843, relating to obstruction of justice.

17         30.  Section 847.011, s. 847.012, s. 847.013, s.

18  847.06, or s. 847.07, relating to obscene literature and

19  profanity.

20         31.  Section 849.09, s. 849.14, s. 849.15, s. 849.23,

21  or s. 849.25, relating to gambling.

22         32.  Chapter 893, relating to drug abuse prevention and

23  control.

24         33.  Section 914.22 or s. 914.23, relating to

25  witnesses, victims, or informants.

26         34.  Section 918.12 or s. 918.13, relating to tampering

27  with jurors and evidence.

28         Section 11.  For the purpose of incorporating the

29  amendment made by this act to section 210.18, Florida

30  Statutes, in a reference thereto, paragraph (a) of subsection

31  (1) of section 895.02, Florida Statutes, is reenacted to read:

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 1         895.02  Definitions.--As used in ss. 895.01-895.08, the

 2  term:

 3         (1)  "Racketeering activity" means to commit, to

 4  attempt to commit, to conspire to commit, or to solicit,

 5  coerce, or intimidate another person to commit:

 6         (a)  Any crime which is chargeable by indictment or

 7  information under the following provisions of the Florida

 8  Statutes:

 9         1.  Section 210.18, relating to evasion of payment of

10  cigarette taxes.

11         2.  Section 403.727(3)(b), relating to environmental

12  control.

13         3.  Section 409.920 or s. 409.9201, relating to

14  Medicaid fraud.

15         4.  Section 414.39, relating to public assistance

16  fraud.

17         5.  Section 440.105 or s. 440.106, relating to workers'

18  compensation.

19         6.  Section 465.0161, relating to distribution of

20  medicinal drugs without a permit as an Internet pharmacy.

21         7.  Sections 499.0051, 499.0052, 499.00535, 499.00545,

22  and 499.0691, relating to crimes involving contraband and

23  adulterated drugs.

24         8.  Part IV of chapter 501, relating to telemarketing.

25         9.  Chapter 517, relating to sale of securities and

26  investor protection.

27         10.  Section 550.235, s. 550.3551, or s. 550.3605,

28  relating to dogracing and horseracing.

29         11.  Chapter 550, relating to jai alai frontons.

30         12.  Chapter 552, relating to the manufacture,

31  distribution, and use of explosives.

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 1         13.  Chapter 560, relating to money transmitters, if

 2  the violation is punishable as a felony.

 3         14.  Chapter 562, relating to beverage law enforcement.

 4         15.  Section 624.401, relating to transacting insurance

 5  without a certificate of authority, s. 624.437(4)(c)1.,

 6  relating to operating an unauthorized multiple-employer

 7  welfare arrangement, or s. 626.902(1)(b), relating to

 8  representing or aiding an unauthorized insurer.

 9         16.  Section 655.50, relating to reports of currency

10  transactions, when such violation is punishable as a felony.

11         17.  Chapter 687, relating to interest and usurious

12  practices.

13         18.  Section 721.08, s. 721.09, or s. 721.13, relating

14  to real estate timeshare plans.

15         19.  Chapter 782, relating to homicide.

16         20.  Chapter 784, relating to assault and battery.

17         21.  Chapter 787, relating to kidnapping.

18         22.  Chapter 790, relating to weapons and firearms.

19         23.  Section 796.03, s. 796.035, s. 796.04, s. 796.045,

20  s. 796.05, or s. 796.07, relating to prostitution and sex

21  trafficking.

22         24.  Chapter 806, relating to arson.

23         25.  Section 810.02(2)(c), relating to specified

24  burglary of a dwelling or structure.

25         26.  Chapter 812, relating to theft, robbery, and

26  related crimes.

27         27.  Chapter 815, relating to computer-related crimes.

28         28.  Chapter 817, relating to fraudulent practices,

29  false pretenses, fraud generally, and credit card crimes.

30         29.  Chapter 825, relating to abuse, neglect, or

31  exploitation of an elderly person or disabled adult.

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 1         30.  Section 827.071, relating to commercial sexual

 2  exploitation of children.

 3         31.  Chapter 831, relating to forgery and

 4  counterfeiting.

 5         32.  Chapter 832, relating to issuance of worthless

 6  checks and drafts.

 7         33.  Section 836.05, relating to extortion.

 8         34.  Chapter 837, relating to perjury.

 9         35.  Chapter 838, relating to bribery and misuse of

10  public office.

11         36.  Chapter 843, relating to obstruction of justice.

12         37.  Section 847.011, s. 847.012, s. 847.013, s.

13  847.06, or s. 847.07, relating to obscene literature and

14  profanity.

15         38.  Section 849.09, s. 849.14, s. 849.15, s. 849.23,

16  or s. 849.25, relating to gambling.

17         39.  Chapter 874, relating to criminal street gangs.

18         40.  Chapter 893, relating to drug abuse prevention and

19  control.

20         41.  Chapter 896, relating to offenses related to

21  financial transactions.

22         42.  Sections 914.22 and 914.23, relating to tampering

23  with a witness, victim, or informant, and retaliation against

24  a witness, victim, or informant.

25         43.  Sections 918.12 and 918.13, relating to tampering

26  with jurors and evidence.

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

28  law.

29  

30  

31  

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 1            *****************************************

 2                          SENATE SUMMARY

 3    Requires manufacturers, importers, distributing agents,
      dealers, and retail dealers to hold a current, valid
 4    permit in order to sell, distribute, or receive
      cigarettes.  Authorizes certain law enforcement officials
 5    to inspect certain shipping vehicles. Requires
      manufacturers and importers to keep records of cigarettes
 6    received, sold, and delivered and to keep daily sales
      tickets of cigarette sales. Authorizes the Division of
 7    Alcoholic Beverages and Tobacco of the Department of
      Business and Professional Regulation to examine records
 8    and equipment of any manufacturer or importer of
      cigarettes. Authorizes the state to claim certain
 9    property and materials from certain dealers and retailers
      who attempt to defraud the state. Prohibits issuance,
10    maintenance, or renewal of certain permits for certain
      applicants. Authorizes the division to revoke a person's
11    permit. Prohibits a person whose permit has been revoked
      from engaging in business. Prohibits a person whose
12    permit has been revoked from renewing or obtaining a new
      permit for 2 years. Authorizes the division to impose a
13    civil penalty, not to exceed $25,000, in addition to
      revocation of a permit. Expands the group of violators
14    subject to criminal liability. Prohibits the sale or
      possession for sale of counterfeit cigarettes. Provides
15    civil penalties for failure to comply with certain duties
      or to pay certain taxes.
16  

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