HB 1313

1	A bill to be entitled
2	An act relating to the transportation and sale of
3	cigarettes; amending s. 210.01, F.S.; defining the term
4	"brand family"; creating s. 210.0205, F.S.; providing
5	definitions; imposing a fee on certain cigarettes;
6	providing payment requirements; requiring reporting of the
7	number and denominations of stamps affixed to individual
8	packages of certain cigarettes by manufacturer and brand
9	family; authorizing rulemaking regarding such reports;
10	requiring registration with the Division of Alcoholic
11	Beverages and Tobacco of the Department of Business and
12	Professional Regulation of nonsettling manufacturers of
13	cigarettes; requiring development, maintenance, and
14	publication by the division of a list of nonsettling
15	manufacturers of cigarettes which have certified their
16	compliance with the act; treating cigarettes of certain
17	manufacturers that have not paid the fee imposed by this
18	act or that have not complied with reporting requirements
19	as cigarettes for which the tax imposed by s. 210.02,
20	F.S., has not been paid; prohibiting the stamping of
21	certain cigarettes for which the fee imposed by the act
22	has not been paid in full or the nonsettling manufacturer
23	of which has not complied with reporting requirements;
24	delaying application of the fee to a subsequent
25	participating manufacturer under certain circumstances;
26	amending s. 210.18, F.S.; expanding the group of violators
27	subject to criminal liability; prohibiting the sale or
28	possession for sale of counterfeit cigarettes; providing
29	penalties; reenacting ss. 772.102(1)(a) and 895.02(1)(a),
30	F.S., relating to crimes constituting a "criminal
31	activity" and definitions as used in the Florida RICO Act,
32	to incorporate the amendment to s. 210.18, F.S., in
33	references thereto; providing an appropriation and
34	authorizing positions; providing an appropriation to the
35	Department of Health; providing purposes; amending s.
36	17.41, F.S.; providing an additional source of revenue to
37	the Tobacco Settlement Clearing Trust Fund; authorizing
38	the Attorney General to demand from the administrator of
39	the Master Settlement Agreement that the payments
40	currently being made to the 46 Master Settlement Agreement
41	states by tobacco companies be paid annually by the
42	administrator to this state or that the affected companies
43	pay this state directly and receive a credit for the
44	payments; providing that the arrangement not violate any
45	contractual agreements that have been made with this state
46	and the affected companies; requiring that a report on the
47	status of these activities be presented by the Attorney
48	General to the President of the Senate and the Speaker of
49	the House of Representatives by a specified date;
50	providing an effective date.
51
52	WHEREAS, it is the intent of the Legislature to prevent
53	nonsettling manufacturers from undermining the state's policy of
54	reducing underage smoking by offering their cigarettes for sale
55	substantially below the price of cigarettes of other
56	manufacturers; to protect the tobacco settlement agreement and
57	funding, which is reduced as a result of the growth of
58	nonsettling-manufacturer cigarette sales, for programs funded in
59	whole or in part by payments to the state under the tobacco
60	settlement agreement and to recoup for the state settlement-
61	payment revenue lost to the state as a result of nonsettling-
62	manufacturer cigarette sales; to fund enforcement and
63	administration of nonsettling-manufacturer legislation and the
64	fee imposed in this act, including reasonable administrative
65	costs incurred by wholesale dealers complying with any
66	additional reporting requirements necessitated by this act; to
67	collect payments that are currently being made to the 46 Master
68	Settlement Agreement states by tobacco companies, which payments
69	are calculated upon the sale of the companies' cigarettes in
70	this state; and to fund such other purposes as the Legislature
71	determines, NOW, THEREFORE,
72
73	Be It Enacted by the Legislature of the State of Florida:
74
75	Section 1.  Subsection (23) is added to section 210.01,
76	Florida Statutes, to read:
77	210.01  Definitions.--When used in this part the following
78	words shall have the meaning herein indicated:
79	(23)  "Brand family" means all styles of cigarettes sold
80	under the same trademark and differentiated from one another by
81	means of additional modifiers or descriptors, including, but not
82	limited to, "menthol," "lights," "kings," and "100s," and
83	includes any brand name used alone or in conjunction with any
84	other word, trademark, logo, symbol, motto, selling message,
85	recognizable pattern of colors, or any other indicia of product
86	identification identical or similar to, or identifiable with, a
87	previously known brand of cigarettes.
88	Section 2.  Section 210.0205, Florida Statutes, is created
89	to read:
90	210.0205  Nonsettling-manufacturer fee.--
91	(1)  As used in this section, the term:
92	(a)  "Consumer Price Index" means the Consumer Price Index
93	for All Urban Consumers as published by the Bureau of Labor
94	Statistics of the United States Department of Labor.
95	(b)  "Manufacturer" means a person or entity holding a
96	valid permit under 26 U.S.C. s. 5712 that manufactures,
97	fabricates, or assembles cigarettes. The term includes an entity
98	that is the first importer into the United States of cigarettes
99	manufactured abroad.
100	(c)  "Nonsettling manufacturer" means any tobacco product
101	manufacturer that has not entered into the tobacco settlement
102	agreement defined in s. 215.56005(1)(f), or the Attorneys
103	General Settlement Agreement dated March 15, 1996, in the State
104	of Florida, et al. v. American Tobacco Company, et al.,
105	Fifteenth Judicial Circuit, Case No. 95-1466.
106	(d)  "Nonsettling-manufacturer cigarettes" means cigarettes
107	manufactured by a nonsettling manufacturer, except when payments
108	on such cigarettes are due to be made by a settling manufacturer
109	pursuant to a tobacco settlement agreement described in
110	paragraph (c).
111	(2)  A fee, in addition to all other taxes or fees of every
112	kind imposed by law, is imposed upon the sale, receipt,
113	purchase, possession, consumption, handling, distribution, and
114	use in this state of nonsettling-manufacturer cigarettes to the
115	package of which an agent affixes a stamp or stamp insignia as
116	required by law or which are sold or purchased in the state but
117	are not required to bear a stamp or stamp insignia of this
118	state. The fee is in the amount of 20 mills per cigarette in
119	fiscal year 2006-2007. Beginning January 1, 2008, and on January
120	1 of each year thereafter, the division shall adjust the tax
121	rate by the greater of 3 percent or the percentage change in the
122	average of the Consumer Price Index issued by the United States
123	Department of Labor for the most recent 12-month period ending
124	September 30 compared to the 12-month period ending September 30
125	of the prior year.
126	(3)  The division shall collect the fee once each month
127	from each nonsettling manufacturer based on information received
128	pursuant to subsection (6). The division shall mail to each
129	nonsettling manufacturer not later than the 15th day of each
130	month a notice of the fee due from that manufacturer for sales
131	of its cigarettes made in the preceding month. Each such
132	nonsettling manufacturer shall ensure that the division has
133	received payment of the fee in full no later than the last day
134	of the month in which the notice was mailed. Except as otherwise
135	provided in this section, proceeds from the fee shall be
136	deposited into the Tobacco Settlement Clearing Trust Fund and
137	the fee shall be imposed, collected, paid, administered, and
138	enforced in the same manner as the tax on cigarettes imposed by
139	s. 210.02.
140	(4)  A nonsettling manufacturer selling cigarettes in this
141	state on July 1, 2006, shall provide to the division the
142	information described in subsections (7) and (8) and pay the fee
143	imposed by subsection (2), by August 1, 2006. If a nonsettling
144	manufacturer is not selling cigarettes in this state on July 1,
145	2006, before commencing sales of cigarettes in this state, the
146	nonsettling manufacturer shall prepay the fee imposed by
147	subsection (2). The prepayment amount shall be a sum determined
148	by multiplying by 20 mills in fiscal year 2006-2007 the number
149	of cigarettes the division reasonably projects that the
150	nonsettling manufacturer will sell in this state in the first
151	calendar month or $50,000, whichever is more. The division may
152	require a nonsettling manufacturer to provide any information
153	reasonably necessary to determine the amount of the prepayment
154	fee and, in the case of prepayment, shall establish procedures
155	for providing reimbursement to nonsettling manufacturers if
156	actual sales are less than sales projected by the division and
157	for additional payment by nonsettling manufacturers if actual
158	sales are greater than sales projected by the division. As used
159	in this subsection, the term "cigarettes" refers only to
160	nonsettling-manufacturer cigarettes.
161	(5)  The purposes of the fee are to:
162	(a)  Prevent nonsettling manufacturers from undermining the
163	state's policy of reducing underage smoking by offering
164	cigarettes for sale substantially below the price of cigarettes
165	of other manufacturers.
166	(b)1.  Protect the tobacco settlement agreement, as defined
167	in s. 215.56005(1)(f), and funding, which is reduced as a result
168	of the growth of nonsettling-manufacturer cigarette sales, for
169	programs funded in whole or in part by payments to the state
170	under the tobacco settlement agreement; and
171	2.  Recoup for the state settlement-payment revenue lost to
172	the state as a result of nonsettling-manufacturer cigarette
173	sales.
174	(c)  Fund enforcement and administration of nonsettling-
175	manufacturer legislation and the fee imposed by this section,
176	including reasonable administrative costs incurred by wholesale
177	dealers complying with any additional reporting requirements
178	necessitated by this section.
179	(d)  Fund such other purposes as the Legislature
180	determines; however, $16 million of the proceeds received under
181	this section shall be provided annually through quarterly
182	disbursements to the Department of Health, for the purposes of
183	implementing a statewide anti-smoking marketing, educational,
184	and advertising campaign to reduce youth tobacco use. The
185	Department of Health shall conduct surveillance and evaluations
186	to measure program performance and improve implementation
187	strategies. The Department of Health may contract for any of the
188	activities specified in this section.
189	(6)  Monthly reports shall be made to the division pursuant
190	to s. 210.09(2) by each agent and wholesaler. Such reports must
191	state the number and denominations of stamps or stamp insignia
192	affixed to individual packages of nonsettling-manufacturer
193	cigarettes and the number of individual packages of nonsettling-
194	manufacturer cigarettes otherwise sold or purchased in this
195	state or otherwise handled or distributed in this state for sale
196	in another state, commonwealth, or territory of the United
197	States, by manufacturer and brand family, sold for each place of
198	business in the month preceding the month in which the report is
199	made. The division may adopt rules requiring any agent,
200	wholesaler, wholesale dealer, or nonsettling manufacturer to
201	provide in the monthly report any information necessary or
202	appropriate to determining the fee due under subsection (2) or
203	to enforcing this section.
204	(7)  Before commencing sales of cigarettes in this state
205	or, if selling cigarettes in this state on July 1, 2006, by
206	August 1, 2006, a nonsettling manufacturer shall provide to the
207	division, on a form prescribed by the division:
208	(a)  The complete name, address, and telephone number of
209	the nonsettling manufacturer.
210	(b)  The date the nonsettling manufacturer began or intends
211	to begin selling cigarettes in this state.
212	(c)  The names of the brand families of the cigarettes the
213	nonsettling manufacturer is selling or will sell in this state.
214	(d)  A statement of the nonsettling manufacturer's
215	intention to comply with the obligations imposed by this
216	section.
217	(e)  The name, address, telephone number, and signature of
218	an officer of the nonsettling manufacturer attesting to all of
219	the information described in this subsection.
220	(8)  Each nonsettling manufacturer subject to the fee
221	imposed by subsection (2) shall certify to the division on the
222	first day of each month that the manufacturer is in compliance
223	with this section and has paid in full the fee imposed by
224	subsection (2). The division shall develop, maintain, and
225	publish on its Internet website a directory listing all
226	nonsettling manufacturers that have provided current, accurate,
227	and complete certifications. The division shall provide a copy
228	of the list to any person upon request.
229	(9)  Cigarettes of a nonsettling manufacturer that has not
230	paid a fee imposed by subsection (2), or that has not complied
231	with the reporting requirements of subsections (4), (6), (7),
232	and (8), shall be treated as cigarettes for which the tax
233	imposed by s. 210.02 has not been paid. A person may not affix
234	to any package of nonsettling-manufacturer cigarettes the stamp
235	required under s. 210.06, or otherwise purchase or sell such
236	cigarettes, after such person receives notice from the division
237	that the nonsettling manufacturer of such cigarettes has not
238	paid in full the fee imposed by subsection (2) or if the
239	nonsettling manufacturer is not listed on the division's
240	directory described in subsection (8).
241	(10)  The fee imposed by this section does not apply to a
242	subsequent participating manufacturer, as defined in the master
243	settlement agreement, until the effective date of a credit
244	amendment to the master settlement agreement. For purposes of
245	this subsection, the term "master settlement agreement" means
246	the settlement agreement and related documents entered into in
247	1998 by 46 states and leading United States tobacco
248	manufacturers. An amendment to the master settlement agreement
249	shall be considered a credit amendment if it makes available to
250	each subsequent participating manufacturer, other than any
251	subsequent participating manufacturer that has an agreement as
252	of July 1, 2006, as described in the final sentence of this
253	subsection, each year a credit against its payment obligations
254	under the master settlement agreement which is equal to or
255	greater than the product of the total number of individual
256	cigarettes sold by a subsequent participating manufacturer in
257	this state during the year in question multiplied by at least
258	73.2 percent of the per-cigarette fee provided for in this
259	section, and does not condition that credit on such subsequent
260	participating manufacturer forfeiting in whole or in part any
261	other benefits or credits provided for in the master settlement
262	agreement. This subsection does not apply to any subsequent
263	participating manufacturer that, as of July 1, 2006, already had
264	an agreement with the settling states, as defined in the master
265	settlement agreement, pursuant to which agreement the subsequent
266	participating manufacturer has agreed to a different credit
267	against its payment obligations under the master settlement
268	agreement based on its cigarette sales in this state.
269	Section 3.  Subsections (6) and (9) of section 210.18,
270	Florida Statutes, are amended to read:
271	210.18  Penalties for tax evasion; reports by sheriffs.--
272	(6)(a)  Every person, firm, or corporation, other than a
273	licensee under the provisions of this part, who possesses,
274	removes, deposits, or conceals, or aids in the possessing,
275	removing, depositing, or concealing of, any unstamped cigarettes
276	not in excess of 50 cartons is guilty of a misdemeanor of the
277	second degree, punishable as provided in s. 775.082 or s.
278	775.083. In lieu of the penalties provided in those sections,
279	however, the person, firm, or corporation may pay the tax plus a
280	penalty equal to the amount of the tax authorized under s.
281	210.02 on the unstamped cigarettes.
282	(a)(b)  Every person, firm, or corporation, other than a
283	licensee under the provisions of this part, who possesses,
284	removes, deposits, or conceals, or aids in the possessing,
285	removing, depositing, or concealing of, any unstamped cigarettes
286	in excess of 50 cartons is presumed to have knowledge that they
287	have not been taxed and commits is guilty of a felony of the
288	third degree, punishable as provided in s. 775.082, s. 775.083,
289	or s. 775.084.
290	(b)(c)  This section does not apply to a person possessing
291	not in excess of three cartons of such cigarettes purchased by
292	such possessor outside the state in accordance with the laws of
293	the place where purchased and brought into this state by such
294	possessor. The burden of proof that such cigarettes were
295	purchased outside the state and in accordance with the laws of
296	the place where purchased shall in all cases be upon the
297	possessor of such cigarettes.
298	(9)  Notwithstanding any other provision of law, the sale
299	or possession for sale of counterfeit cigarettes by any person
300	or by a manufacturer, importer, distributing agent, wholesale
301	dealer, or retail dealer shall result in the seizure of the
302	product and related machinery by the division or any law
303	enforcement agency and shall be punishable as follows:.
304	(a)1.  A first violation with a total quantity of less than
305	two cartons of cigarettes or the equivalent amount of other
306	cigarettes shall be punishable by a fine not to exceed $1,000 or
307	five times the retail value of the cigarettes involved,
308	whichever is greater, or imprisonment not to exceed 5 years, or
309	both.
310	2.  A subsequent violation with a total quantity of less
311	than two cartons of cigarettes or the equivalent amount of other
312	cigarettes shall be punishable by a fine not to exceed $5,000 or
313	five times the retail value of the cigarettes involved,
314	whichever is greater, or imprisonment not to exceed 5 years, or
315	both, and shall also result in the revocation by the division of
316	the permit of the manufacturer, importer, distributing agent,
317	wholesale dealer, or retail dealer.
318	(b)1.  A first violation with a total quantity of two or
319	more cartons of cigarettes or the equivalent amount of other
320	cigarettes shall be punishable by a fine not to exceed $2,000 or
321	five times the retail value of the cigarettes involved,
322	whichever is greater, or imprisonment not to exceed 5 years, or
323	both.
324	2.  A subsequent violation with a quantity of two cartons
325	of cigarettes or more or the equivalent amount of other
326	cigarettes shall be punishable by a fine not to exceed $50,000
327	or five times the retail value of the cigarettes involved,
328	whichever is greater, or imprisonment not to exceed 5 years, or
329	both, and shall also result in the revocation by the division of
330	the permit of the manufacturer, importer, distributing agent,
331	wholesale dealer, or retail dealer.
332
333	For purposes of this subsection, any counterfeit cigarettes
334	seized by the division shall be destroyed.
335	Section 4.  For the purpose of incorporating the amendment
336	made by this act to section 210.18, Florida Statutes, in a
337	reference thereto, paragraph (a) of subsection (1) of section
338	772.102, Florida Statutes, is reenacted to read:
339	772.102  Definitions.--As used in this chapter, the term:
340	(1)  "Criminal activity" means to commit, to attempt to
341	commit, to conspire to commit, or to solicit, coerce, or
342	intimidate another person to commit:
343	(a)  Any crime which is chargeable by indictment or
344	information under the following provisions:
345	1.  Section 210.18, relating to evasion of payment of
346	cigarette taxes.
347	2.  Section 414.39, relating to public assistance fraud.
348	3.  Section 440.105 or s. 440.106, relating to workers'
349	compensation.
350	4.  Part IV of chapter 501, relating to telemarketing.
351	5.  Chapter 517, relating to securities transactions.
352	6.  Section 550.235, s. 550.3551, or s. 550.3605, relating
353	to dogracing and horseracing.
354	7.  Chapter 550, relating to jai alai frontons.
355	8.  Chapter 552, relating to the manufacture, distribution,
356	and use of explosives.
357	9.  Chapter 562, relating to beverage law enforcement.
358	10.  Section 624.401, relating to transacting insurance
359	without a certificate of authority, s. 624.437(4)(c)1., relating
360	to operating an unauthorized multiple-employer welfare
361	arrangement, or s. 626.902(1)(b), relating to representing or
362	aiding an unauthorized insurer.
363	11.  Chapter 687, relating to interest and usurious
364	practices.
365	12.  Section 721.08, s. 721.09, or s. 721.13, relating to
366	real estate timeshare plans.
367	13.  Chapter 782, relating to homicide.
368	14.  Chapter 784, relating to assault and battery.
369	15.  Chapter 787, relating to kidnapping.
370	16.  Chapter 790, relating to weapons and firearms.
371	17.  Section 796.03, s. 796.04, s. 796.05, or s. 796.07,
372	relating to prostitution.
373	18.  Chapter 806, relating to arson.
374	19.  Section 810.02(2)(c), relating to specified burglary
375	of a dwelling or structure.
376	20.  Chapter 812, relating to theft, robbery, and related
377	crimes.
378	21.  Chapter 815, relating to computer-related crimes.
379	22.  Chapter 817, relating to fraudulent practices, false
380	pretenses, fraud generally, and credit card crimes.
381	23.  Section 827.071, relating to commercial sexual
382	exploitation of children.
383	24.  Chapter 831, relating to forgery and counterfeiting.
384	25.  Chapter 832, relating to issuance of worthless checks
385	and drafts.
386	26.  Section 836.05, relating to extortion.
387	27.  Chapter 837, relating to perjury.
388	28.  Chapter 838, relating to bribery and misuse of public
389	office.
390	29.  Chapter 843, relating to obstruction of justice.
391	30.  Section 847.011, s. 847.012, s. 847.013, s. 847.06, or
392	s. 847.07, relating to obscene literature and profanity.
393	31.  Section 849.09, s. 849.14, s. 849.15, s. 849.23, or s.
394	849.25, relating to gambling.
395	32.  Chapter 893, relating to drug abuse prevention and
396	control.
397	33.  Section 914.22 or s. 914.23, relating to witnesses,
398	victims, or informants.
399	34.  Section 918.12 or s. 918.13, relating to tampering
400	with jurors and evidence.
401	Section 5.  For the purpose of incorporating the amendment
402	made by this act to section 210.18, Florida Statutes, in a
403	reference thereto, paragraph (a) of subsection (1) of section
404	895.02, Florida Statutes, is reenacted to read:
405	895.02  Definitions.--As used in ss. 895.01-895.08, the
406	term:
407	(1)  "Racketeering activity" means to commit, to attempt to
408	commit, to conspire to commit, or to solicit, coerce, or
409	intimidate another person to commit:
410	(a)  Any crime which is chargeable by indictment or
411	information under the following provisions of the Florida
412	Statutes:
413	1.  Section 210.18, relating to evasion of payment of
414	cigarette taxes.
415	2.  Section 403.727(3)(b), relating to environmental
416	control.
417	3.  Section 409.920 or s. 409.9201, relating to Medicaid
418	fraud.
419	4.  Section 414.39, relating to public assistance fraud.
420	5.  Section 440.105 or s. 440.106, relating to workers'
421	compensation.
422	6.  Section 443.071(4), relating to creation of a
423	fictitious employer scheme to commit unemployment compensation
424	fraud.
425	7.  Section 465.0161, relating to distribution of medicinal
426	drugs without a permit as an Internet pharmacy.
427	8.  Sections 499.0051, 499.0052, 499.00535, 499.00545, and
428	499.0691, relating to crimes involving contraband and
429	adulterated drugs.
430	9.  Part IV of chapter 501, relating to telemarketing.
431	10.  Chapter 517, relating to sale of securities and
432	investor protection.
433	11.  Section 550.235, s. 550.3551, or s. 550.3605, relating
434	to dogracing and horseracing.
435	12.  Chapter 550, relating to jai alai frontons.
436	13.  Section 551.109, relating to slot machine gaming.
437	14.  Chapter 552, relating to the manufacture,
438	distribution, and use of explosives.
439	15.  Chapter 560, relating to money transmitters, if the
440	violation is punishable as a felony.
441	16.  Chapter 562, relating to beverage law enforcement.
442	17.  Section 624.401, relating to transacting insurance
443	without a certificate of authority, s. 624.437(4)(c)1., relating
444	to operating an unauthorized multiple-employer welfare
445	arrangement, or s. 626.902(1)(b), relating to representing or
446	aiding an unauthorized insurer.
447	18.  Section 655.50, relating to reports of currency
448	transactions, when such violation is punishable as a felony.
449	19.  Chapter 687, relating to interest and usurious
450	practices.
451	20.  Section 721.08, s. 721.09, or s. 721.13, relating to
452	real estate timeshare plans.
453	21.  Chapter 782, relating to homicide.
454	22.  Chapter 784, relating to assault and battery.
455	23.  Chapter 787, relating to kidnapping.
456	24.  Chapter 790, relating to weapons and firearms.
457	25.  Section 796.03, s. 796.035, s. 796.04, s. 796.045, s.
458	796.05, or s. 796.07, relating to prostitution and sex
459	trafficking.
460	26.  Chapter 806, relating to arson.
461	27.  Section 810.02(2)(c), relating to specified burglary
462	of a dwelling or structure.
463	28.  Chapter 812, relating to theft, robbery, and related
464	crimes.
465	29.  Chapter 815, relating to computer-related crimes.
466	30.  Chapter 817, relating to fraudulent practices, false
467	pretenses, fraud generally, and credit card crimes.
468	31.  Chapter 825, relating to abuse, neglect, or
469	exploitation of an elderly person or disabled adult.
470	32.  Section 827.071, relating to commercial sexual
471	exploitation of children.
472	33.  Chapter 831, relating to forgery and counterfeiting.
473	34.  Chapter 832, relating to issuance of worthless checks
474	and drafts.
475	35.  Section 836.05, relating to extortion.
476	36.  Chapter 837, relating to perjury.
477	37.  Chapter 838, relating to bribery and misuse of public
478	office.
479	38.  Chapter 843, relating to obstruction of justice.
480	39.  Section 847.011, s. 847.012, s. 847.013, s. 847.06, or
481	s. 847.07, relating to obscene literature and profanity.
482	40.  Section 849.09, s. 849.14, s. 849.15, s. 849.23, or s.
483	849.25, relating to gambling.
484	41.  Chapter 874, relating to criminal street gangs.
485	42.  Chapter 893, relating to drug abuse prevention and
486	control.
487	43.  Chapter 896, relating to offenses related to financial
488	transactions.
489	44.  Sections 914.22 and 914.23, relating to tampering with
490	a witness, victim, or informant, and retaliation against a
491	witness, victim, or informant.
492	45.  Sections 918.12 and 918.13, relating to tampering with
493	jurors and evidence.
494	(b)  Any conduct defined as "racketeering activity" under
495	18 U.S.C. s. 1961(1).
496	Section 6.  For the 2006-2007 fiscal year, the sum of
497	$480,028 is appropriated from the Alcoholic Beverage and Tobacco
498	Trust Fund and four full-time equivalent positions are
499	authorized to be established by the Department of Business and
500	Professional Regulation for the purpose of conducting regulatory
501	activities related to the transportation and sale of cigarettes.
502	Section 7.  From the funds generated by this act, the sum
503	of $2 million is appropriated to the Department of Health for
504	the 2006-2007 fiscal year to address health care disparities in
505	the minority community.
506	Section 8.  Subsection (2) of section 17.41, Florida
507	Statutes, is amended to read:
508	17.41  Department of Financial Services Tobacco Settlement
509	Clearing Trust Fund.--
510	(2)  Funds to be credited to the Tobacco Settlement
511	Clearing Trust Fund shall consist of payments received by the
512	state from settlement of State of Florida v. American Tobacco
513	Co., No. 95-1466AH (Fla. 15th Cir. Ct. 1996) and fees from the
514	nonsettling-manufacturer fee collected pursuant to s. 210.0205.
515	Moneys received from the settlement and fees that are deposited
516	into the trust fund are exempt from the service charges imposed
517	under s. 215.20.
518	Section 9.  The Attorney General may demand from the
519	administrator of the Master Settlement Agreement that the
520	payments currently being made to the 46 Master Settlement
521	Agreement states by tobacco companies which are based, in part,
522	upon the sale of cigarettes in this state be paid annually by
523	the administrator of the Master Settlement Agreement to this
524	state or that the affected companies pay this state directly and
525	receive a credit for the payments from the administrator. The
526	Attorney General may negotiate with the administrator of the
527	Master Settlement Agreement so as not to violate any contractual
528	agreements that have been made with this state and the affected
529	companies. A report concerning the status of these activities
530	shall be presented by the Attorney General to the President of
531	the Senate and the Speaker of the House of Representatives by
532	January 1, 2007.
533	Section 10.  This act shall take effect July 1, 2006.

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