Senate Bill sb1988

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    Florida Senate - 2006                                  SB 1988

    By Senator Bennett





    21-1458-06

  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         defining the term "brand family"; creating s.

  5         210.0205, F.S.; providing definitions; imposing

  6         a fee on certain cigarettes; providing payment

  7         requirements; requiring reporting of the number

  8         and denominations of stamps affixed to

  9         individual packages of certain cigarettes by

10         manufacturer and brand family; authorizing

11         rulemaking regarding such reports; requiring

12         registration with the Division of Alcoholic

13         Beverages and Tobacco of the Department of

14         Business and Professional Regulation of

15         nonsettling manufacturers of cigarettes;

16         requiring development, maintenance, and

17         publication by the division of a list of

18         nonsettling manufacturers of cigarettes which

19         have certified their compliance with the act;

20         treating cigarettes of certain manufacturers

21         that have not paid the fee imposed by this act

22         or that have not complied with reporting

23         requirements as cigarettes for which the tax

24         imposed by s. 210.02, F.S., has not been paid;

25         prohibiting the stamping of certain cigarettes

26         for which the fee imposed by the act has not

27         been paid in full or the nonsettling

28         manufacturer of which has not complied with

29         reporting requirements; delaying application of

30         the fee to a subsequent participating

31         manufacturer under certain circumstances;

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 1         amending s. 210.18, F.S.; expanding the group

 2         of violators subject to criminal liability;

 3         prohibiting the sale or possession for sale of

 4         counterfeit cigarettes; providing penalties;

 5         reenacting ss. 772.102(1)(a) and 895.02(1)(a),

 6         F.S., relating to crimes constituting a

 7         "criminal activity" and definitions as used in

 8         the Florida RICO Act, to incorporate the

 9         amendment to s. 210.18, F.S., in references

10         thereto; providing an appropriation and

11         authorizing positions; providing an

12         appropriation to the Department of Health;

13         providing purposes; amending s. 17.41, F.S.;

14         providing an additional source of revenue to

15         the Tobacco Settlement Trust Fund; authorizing

16         the Attorney General to demand from the

17         administrator of the Master Settlement

18         Agreement that the payments currently being

19         made to the 46 Master Settlement Agreement

20         states by tobacco companies be paid annually by

21         the administrator to this state or that the

22         affected companies pay this state directly and

23         receive a credit for the payments; providing

24         that the arrangement not violate any

25         contractual agreements that have been made with

26         this state and the affected companies;

27         requiring that a report on the status of these

28         activities be presented by the Attorney General

29         to the President of the Senate and the Speaker

30         of the House of Representatives by a specified

31         date; providing an effective date.

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 1  

 2         WHEREAS, it is the intent of the Legislature to prevent

 3  nonsettling manufacturers from undermining the state's policy

 4  of reducing underage smoking by offering their cigarettes for

 5  sale substantially below the price of cigarettes of other

 6  manufacturers; to protect the tobacco settlement agreement and

 7  funding, which is reduced as a result of the growth of

 8  nonsettling-manufacturer cigarette sales, for programs funded

 9  in whole or in part by payments to the state under the tobacco

10  settlement agreement and to recoup for the state

11  settlement-payment revenue lost to the state as a result of

12  nonsettling-manufacturer cigarette sales; to fund enforcement

13  and administration of nonsettling-manufacturer legislation and

14  the fee imposed in this act, including reasonable

15  administrative costs incurred by wholesale dealers complying

16  with any additional reporting requirements necessitated by

17  this act; to collect payments that are currently being made to

18  the 46 Master Settlement Agreement states by tobacco

19  companies, which payments are calculated upon the sale of the

20  companies' cigarettes in this state; and to fund such other

21  purposes as the Legislature determines, NOW, THEREFORE,

22  

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

24  

25         Section 1.  Subsection (23) is added to section 210.01,

26  Florida Statutes, to read:

27         210.01  Definitions.--When used in this part the

28  following words shall have the meaning herein indicated:

29         (23)  "Brand family" means all styles of cigarettes

30  sold under the same trademark and differentiated from one

31  another by means of additional modifiers or descriptors,

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 1  including, but not limited to, "menthol," "lights," "kings,"

 2  and "100s," and includes any brand name used alone or in

 3  conjunction with any other word, trademark, logo, symbol,

 4  motto, selling message, recognizable pattern of colors, or any

 5  other indicia of product identification identical or similar

 6  to, or identifiable with, a previously known brand of

 7  cigarettes.

 8         Section 2.  Section 210.0205, Florida Statutes, is

 9  created to read:

10         210.0205  Nonsettling-manufacturer fee.--

11         (1)  As used in this section, the term:

12         (a)  "Consumer Price Index" means the Consumer Price

13  Index for All Urban Consumers as published by the Bureau of

14  Labor Statistics of the United States Department of Labor.

15         (b)  "Manufacturer" means a person or entity holding a

16  valid permit under 26 U.S.C. s. 5712 that manufactures,

17  fabricates, or assembles cigarettes. The term includes an

18  entity that is the first importer into the United States of

19  cigarettes manufactured abroad.

20         (c)  "Nonsettling manufacturer" means any tobacco

21  product manufacturer that has not entered into the tobacco

22  settlement agreement defined in s. 215.56005(1)(f), or the

23  Attorneys General Settlement Agreement dated March 15, 1996,

24  in the State of Florida, et al. v. American Tobacco Company,

25  et al., Fifteenth Judicial Circuit, Case No. 95-1466.

26         (d)  "Nonsettling-manufacturer cigarettes" means

27  cigarettes manufactured by a nonsettling manufacturer, except

28  when payments on such cigarettes are due to be made by a

29  settling manufacturer pursuant to a tobacco settlement

30  agreement described in paragraph (c).

31  

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 1         (2)  A fee, in addition to all other taxes or fees of

 2  every kind imposed by law, is imposed upon the sale, receipt,

 3  purchase, possession, consumption, handling, distribution, and

 4  use in this state of nonsettling-manufactuer cigarettes to the

 5  package of which an agent affixes a stamp or stamp insignia as

 6  required by law or which are sold or purchased in the state

 7  but are not required to bear a stamp or stamp insignia of this

 8  state.  The fee is in the amount of 20 mills per cigarette in

 9  fiscal year 2006-2007. Beginning January 1, 2008, and on

10  January 1 of each year thereafter, the division shall adjust

11  the tax rate by the greater of 3 percent or the percentage

12  change in the average of the Consumer Price Index issued by

13  the United States Department of Labor for the most recent

14  12-month period ending September 30 compared to the 12-month

15  period ending September 30 of the prior year.

16         (3)  The division shall collect the fee once each month

17  from each nonsettling manufacturer based on information

18  received pursuant to subsection (6). The division shall mail

19  to each nonsettling manufacturer not later than the 15th day

20  of each month a notice of the fee due from that manufacturer

21  for sales of its cigarettes made in the preceding month. Each

22  such nonsettling manufacturer shall ensure that the division

23  has received payment of the fee in full no later than the last

24  day of the month in which the notice was mailed. Except as

25  otherwise provided in this section, proceeds from the fee

26  shall be deposited into the Tobacco Settlement Clearing Trust

27  Fund and the fee shall be imposed, collected, paid,

28  administered, and enforced in the same manner as the tax on

29  cigarettes imposed by s. 210.02.

30         (4)  A nonsettling manufacturer selling cigarettes in

31  this state on July 1, 2006, shall provide to the division the

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 1  information described in subsections (7) and (8) and pay the

 2  fee imposed by subsection (2), by August 1, 2006. If a

 3  nonsettling manufacturer is not selling cigarettes in this

 4  state on July 1, 2006, before commencing sales of cigarettes

 5  in this state, the nonsettling manufacturer shall prepay the

 6  fee imposed by subsection (2). The prepayment amount shall be

 7  a sum determined by multiplying by 20 mills in fiscal year

 8  2006-2007 the number of cigarettes the division reasonably

 9  projects that the nonsettling manufacturer will sell in this

10  state in the first calendar month or $50,000, whichever is

11  more. The division may require a nonsettling manufacturer to

12  provide any information reasonably necessary to determine the

13  amount of the prepayment fee and, in the case of prepayment,

14  shall establish procedures for providing reimbursement to

15  nonsettling manufacturers if actual sales are less than sales

16  projected by the division and for additional payment by

17  nonsettling manufacturers if actual sales are greater than

18  sales projected by the division. As used in this subsection,

19  the term "cigarettes" refers only to nonsettling-manufacturer

20  cigarettes.

21         (5)  The purposes of the fee are to:

22         (a)  Prevent nonsettling manufacturers from undermining

23  the state's policy of reducing underage smoking by offering

24  cigarettes for sale substantially below the price of

25  cigarettes of other manufacturers.

26         (b)1.  Protect the tobacco settlement agreement, as

27  defined in s. 215.56005(1)(f), and funding, which is reduced

28  as a result of the growth of nonsettling-manufacturer

29  cigarette sales, for programs funded in whole or in part by

30  payments to the state under the tobacco settlement agreement;

31  and

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 1         2.  Recoup for the state settlement-payment revenue

 2  lost to the state as a result of nonsettling-manufacturer

 3  cigarette sales.

 4         (c)  Fund enforcement and administration of

 5  nonsettling-manufacturer legislation and the fee imposed by

 6  this section, including reasonable administrative costs

 7  incurred by wholesale dealers complying with any additional

 8  reporting requirements necessitated by this section.

 9         (d)  Fund such other purposes as the Legislature

10  determines; however, $16 million of the proceeds received

11  under this section shall be provided annually through

12  quarterly disbursements to the Department of Health, for the

13  purposes of implementing a statewide anti-smoking marketing,

14  educational, and advertising campaign to reduce youth tobacco

15  use. The Department of Health shall conduct surveillance and

16  evaluations to measure program performance and improve

17  implementation strategies. The Department of Health may

18  contract for any of the activities specified in this section.

19         (6)  Monthly reports shall be made to the division

20  pursuant to s. 210.09(2) by each agent and wholesaler. Such

21  reports must state the number and denominations of stamps or

22  stamp insignia affixed to individual packages of

23  nonsettling-manufacturer cigarettes and the number of

24  individual packages of nonsettling-manufacturer cigarettes

25  otherwise sold or purchased in this state or otherwise handled

26  or distributed in this state for sale in another state,

27  commonwealth, or territory of the United States, by

28  manufacturer and brand family, sold for each place of business

29  in the month preceding the month in which the report is made.

30  The division may adopt rules requiring any agent, wholesaler,

31  wholesale dealer, or nonsettling manufacturer to provide in

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 1  the monthly report any information necessary or appropriate to

 2  determing the fee due under subsection (2) or to enforcing

 3  this section.

 4         (7)  Before commencing sales of cigarettes in this

 5  state or, if selling cigarettes in this state on July 1, 2006,

 6  by August 1, 2006, a nonsettling manufacturer shall provide to

 7  the division, on a form prescribed by the division:

 8         (a)  The complete name, address, and telephone number

 9  of the nonsettling manufacturer.

10         (b)  The date the nonsettling manufacturer began or

11  intends to begin selling cigarettes in this state.

12         (c)  The names of the brand families of the cigarettes

13  the nonsettling manufacturer is selling or will sell in this

14  state.

15         (d)  A statement of the nonsettling manufacturer's

16  intention to comply with the obligations imposed by this

17  section.

18         (e)  The name, address, telephone number, and signature

19  of an officer of the nonsettling manufacturer attesting to all

20  of the information described in this subsection.

21         (8)  Each nonsettling manufacturer subject to the fee

22  imposed by subsection (2) shall certify to the division on the

23  first day of each month that the manufacturer is in compliance

24  with this section and has paid in full the fee imposed by

25  subsection (2). The division shall develop, maintain, and

26  publish on its Internet website a directory listing all

27  nonsettling manufacturers that have provided current,

28  accurate, and complete certifications. The division shall

29  provide a copy of the list to any person upon request.

30         (9)  Cigarettes of a nonsettling manufacturer that has

31  not paid a fee imposed by subsection (2), or that has not

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 1  complied with the reporting requirements of subsections (4),

 2  (6), (7), and (8), shall be treated as cigarettes for which

 3  the tax imposed by s. 210.02 has not been paid. A person may

 4  not affix to any package of nonsetttling-manufacturer

 5  cigarettes the stamp required under s. 210.06, or otherwise

 6  purchase or sell such cigarettes, after such person receives

 7  notice from the division that the nonsettling manufacturer of

 8  such cigarettes has not paid in full the fee imposed by

 9  subsection (2) or if the nonsettling manufacturer is not

10  listed on the division's directory described in subsection

11  (8).

12         (10)  The fee imposed by this section does not apply to

13  a subsequent participating manufacturer, as defined in the

14  master settlement agreement, until the effective date of a

15  credit amendment to the master settlement agreement. For

16  purposes of this subsection and s. 210.05(6)(c), the term

17  "master settlement agreement" means the settlement agreement

18  and related documents entered into in 1998 by 46 states and

19  leading United States tobacco manufacturers. An amendment to

20  the master settlement agreement shall be considered a credit

21  amendment if it makes available to each subsequent

22  participating manufacturer, other than any subsequent

23  participating manufacturer that has an agreement as of July 1,

24  2006, as described in the final sentence of this subsection,

25  each year a credit against its payment obligations under the

26  master settlement agreement which is equal to or greater than

27  the product of the total number of individual cigarettes sold

28  by a subsequent participating manufacturer in this state

29  during the year in question multiplied by at least 73.2

30  percent of the per-cigarette fee provided for in this section,

31  and does not condition that credit on such subsequent

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 1  participating manufacturer forfeiting in whole or in part any

 2  other benefits or credits provided for in the master

 3  settlement agreement. This subsection does not apply to any

 4  subsequent participating manufacturer that, as of July 1,

 5  2006, already had an agreement with the settling states, as

 6  defined in the master settlement agreement, pursuant to which

 7  agreement the subsequent participating manufacturer has agreed

 8  to a different credit against its payment obligations under

 9  the master settlement agreement based on its cigarette sales

10  in this state.

11         Section 3.  Subsections (6) and (9) of section 210.18,

12  Florida Statutes, are amended to read:

13         210.18  Penalties for tax evasion; reports by

14  sheriffs.--

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

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

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

18  removing, depositing, or concealing of, any unstamped

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

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

21  775.082 or s. 775.083.  In lieu of the penalties provided in

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

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

24  authorized under s. 210.02 on the unstamped cigarettes.

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

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

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

28  removing, depositing, or concealing of, any unstamped

29  cigarettes in excess of 50 cartons is presumed to have

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

31  

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

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

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

 4  possessing not in excess of three cartons of such cigarettes

 5  purchased by such possessor outside the state in accordance

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

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

 8  cigarettes were purchased outside the state and in accordance

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

10  be upon the possessor of such cigarettes.

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

12  sale or possession for sale of counterfeit cigarettes by any

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

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

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

16  law enforcement agency and shall be punishable as follows:.

17         (a)1.  A first violation with a total quantity of less

18  than two cartons of cigarettes or the equivalent amount of

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

20  $1,000 or five times the retail value of the cigarettes

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

22  5 years, or both.

23         2.  A subsequent violation with a total quantity of

24  less than two cartons of cigarettes or the equivalent amount

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

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

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

28  5 years, or both, and shall also result in the revocation by

29  the division of the permit of the manufacturer, importer,

30  distributing agent, wholesale dealer, or retail dealer.

31  

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

 2  or more cartons of cigarettes or the equivalent amount of

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

 4  $2,000 or five times the retail value of the cigarettes

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

 6  5 years, or both.

 7         2.  A subsequent violation with a quantity of two

 8  cartons of cigarettes or more or the equivalent amount of

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

10  $50,000 or five times the retail value of the cigarettes

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

12  5 years, or both, and shall also result in the revocation by

13  the division of the permit of the manufacturer, importer,

14  distributing agent, wholesale dealer, or retail dealer.

15  

16  For purposes of this subsection, any counterfeit cigarettes

17  seized by the division shall be destroyed.

18         Section 4.  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 5.  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 443.071(4), relating to creation of a

20  fictitious employer scheme to commit unemployment compensation

21  fraud.

22         7.  Section 465.0161, relating to distribution of

23  medicinal drugs without a permit as an Internet pharmacy.

24         8.  Sections 499.0051, 499.0052, 499.00535, 499.00545,

25  and 499.0691, relating to crimes involving contraband and

26  adulterated drugs.

27         9.  Part IV of chapter 501, relating to telemarketing.

28         10.  Chapter 517, relating to sale of securities and

29  investor protection.

30         11.  Section 550.235, s. 550.3551, or s. 550.3605,

31  relating to dogracing and horseracing.

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 1         12.  Chapter 550, relating to jai alai frontons.

 2         13.  Section 551.109, relating to slot machine gaming.

 3         14.  Chapter 552, relating to the manufacture,

 4  distribution, and use of explosives.

 5         15.  Chapter 560, relating to money transmitters, if

 6  the violation is punishable as a felony.

 7         16.  Chapter 562, relating to beverage law enforcement.

 8         17.  Section 624.401, relating to transacting insurance

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

10  relating to operating an unauthorized multiple-employer

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

12  representing or aiding an unauthorized insurer.

13         18.  Section 655.50, relating to reports of currency

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

15         19.  Chapter 687, relating to interest and usurious

16  practices.

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

18  to real estate timeshare plans.

19         21.  Chapter 782, relating to homicide.

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

21         23.  Chapter 787, relating to kidnapping.

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

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

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

25  trafficking.

26         26.  Chapter 806, relating to arson.

27         27.  Section 810.02(2)(c), relating to specified

28  burglary of a dwelling or structure.

29         28.  Chapter 812, relating to theft, robbery, and

30  related crimes.

31         29.  Chapter 815, relating to computer-related crimes.

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 1         30.  Chapter 817, relating to fraudulent practices,

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

 3         31.  Chapter 825, relating to abuse, neglect, or

 4  exploitation of an elderly person or disabled adult.

 5         32.  Section 827.071, relating to commercial sexual

 6  exploitation of children.

 7         33.  Chapter 831, relating to forgery and

 8  counterfeiting.

 9         34.  Chapter 832, relating to issuance of worthless

10  checks and drafts.

11         35.  Section 836.05, relating to extortion.

12         36.  Chapter 837, relating to perjury.

13         37.  Chapter 838, relating to bribery and misuse of

14  public office.

15         38.  Chapter 843, relating to obstruction of justice.

16         39.  Section 847.011, s. 847.012, s. 847.013, s.

17  847.06, or s. 847.07, relating to obscene literature and

18  profanity.

19         40.  Section 849.09, s. 849.14, s. 849.15, s. 849.23,

20  or s. 849.25, relating to gambling.

21         41.  Chapter 874, relating to criminal street gangs.

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

23  control.

24         43.  Chapter 896, relating to offenses related to

25  financial transactions.

26         44.  Sections 914.22 and 914.23, relating to tampering

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

28  a witness, victim, or informant.

29         45.  Sections 918.12 and 918.13, relating to tampering

30  with jurors and evidence.

31  

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 1         (b)  Any conduct defined as "racketeering activity"

 2  under 18 U.S.C. s. 1961(1).

 3         Section 6.  For the 2006-2007 fiscal year, the sum of

 4  $480,028 is appropriated from the Alcoholic Beverage and

 5  Tobacco Trust Fund and four full-time equivalent positions are

 6  authorized to be established by the Department of Business and

 7  Professional Regulation for the purpose of conducting

 8  regulatory activities related to the transportation and sale

 9  of cigarettes.

10         Section 7.  From the funds generated by this act, the

11  sum of $2 million is appropriated to the Department of Health

12  to address health care disparities in the minority community.

13         Section 8.  Subsection (2) of section 17.41, Florida

14  Statutes, is amended to read:

15         17.41  Department of Financial Services Tobacco

16  Settlement Clearing Trust Fund.--

17         (2)  Funds to be credited to the Tobacco Settlement

18  Clearing Trust Fund shall consist of payments received by the

19  state from settlement of State of Florida v. American Tobacco

20  Co., No. 95-1466AH (Fla. 15th Cir. Ct. 1996) and fees from the

21  nonsettling-manufacturer fee collected pursuant to s.

22  210.0205. Moneys received from the settlement and fees that

23  are deposited into the trust fund are exempt from the service

24  charges imposed under s. 215.20.

25         Section 9.  The Attorney General may demand from the

26  administrator of the Master Settlement Agreement that the

27  payments currently being made to the 46 Master Settlement

28  Agreement states by tobacco companies which are based, in

29  part, upon the sale of cigarettes in this state be paid

30  annually by the administrator of the Master Settlement

31  Agreement to this state or that the affected companies pay

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 1  this state directly and receive a credit for the payments from

 2  the administrator. The Attorney General may negotiate with the

 3  administrator of the Master Settlement Agreement so as not to

 4  violate any contractual agreements that have been made with

 5  this state and the affected companies. A report concerning the

 6  status of these activities shall be presented by the Attorney

 7  General to the President of the Senate and the Speaker of the

 8  House of Representatives by January 1, 2007.

 9         Section 10.  This act shall take effect July 1, 2006.

10  

11            *****************************************

12                          SENATE SUMMARY

13    Imposes fees on the sale, handling, etc. in this state of
      cigarettes of manufacturers not party to a described
14    tobacco settlement agreement and provides procedures for
      implementing the collection of fees and for conducting
15    related procedural activities. (See bill for details.)

16  

17  

18  

19  

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

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