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The Committee on Health Policy (Joyner) recommended the following

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amendment:

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     Senate Amendment (with title amendment)

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     Delete everything after the enacting clause

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and insert:

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     Section 1. The Legislature finds that cigarette consumption

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dramatically impacts the state's Medicaid budget and a

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substantial deficit has been created between what consumers pay

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in related excise or privilege fees and what the state actually

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incurs in health care costs. The Legislature further finds that

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the imposition of a user fee on cigarettes should at least be

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commensurate with the projected governmental costs associated

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with the consumption of cigarettes. The Legislature further finds

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that revenues derived from such user fees should apply to health

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care, with an emphasis given to measures for which there is a

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connection between cigarette consumption and the user fee revenue

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generated from the consumption of cigarettes.

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     Section 2.  Section 210.01, Florida Statutes, is amended to

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read:

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

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words shall have the meaning herein indicated:

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     (1)  "Cigarette" means any roll for smoking, except one of

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which the tobacco is fully naturally fermented, without regard to

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the kind of tobacco or other substances used in the inner roll or

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the nature or composition of the material in which the roll is

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wrapped, which is made wholly or in part of tobacco irrespective

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of size or shape and whether such tobacco is flavored,

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adulterated or mixed with any other ingredient.

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     (2)  "Persons" means any individual, copartnership, society,

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club, association, corporation, joint stock company, and any

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combination of individuals and also an executor, administrator,

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receiver, trustee or other fiduciary.

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     (3)  "Sale" means any transfer, exchange or barter in any

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manner, or by any means whatever.

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     (4)  "Retail sale" or "sale at retail" means a sale to a

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consumer or to any person for any purpose other than resale.

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     (5)  "Dealer" means any wholesale dealer as hereinafter

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defined.

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

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outside this state who sells cigarettes to retail dealers or

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other persons for purposes of resale only. Such term shall not

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include any cigarette manufacturer, export warehouse proprietor,

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

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person sells or distributes cigarettes in this state only to

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dealers who are agents and who hold valid and current permits

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under s. 210.15 or to any cigarette manufacturer, export

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warehouse proprietor, or importer who holds a valid and current

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

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

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outside this state other than a wholesale dealer engaged in the

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business of selling cigarettes, including persons issued a permit

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pursuant to s. 569.003.

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     (8)  "Package" means the individual package, box or other

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container in or from which retail sales of cigarettes are

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normally made or intended to be made.

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     (9)  "Agent" means any person authorized by the Division of

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Alcoholic Beverages and Tobacco to purchase and affix adhesive or

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meter stamps under this part.

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     (10)  "Division" means the Division of Alcoholic Beverages

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and Tobacco of the Department of Business and Professional

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Regulation.

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     (11) "Council" means the Biomedical Research Advisory

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Council within the Department of Health established in s.

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215.5602.

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     (12)(11) "Use" means the consuming, giving away or

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disposing, in any manner, of cigarettes.

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     (13)(12) "First sale" means the first use or consumption of

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cigarettes within this state.

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     (14)(13) "Operating ad valorem millage" means all millages

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other than those fixed for debt service.

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(15) "Total collections" means the total amount

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derived from the cigarette user fee during a specified

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period of time.

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     (16) "Net collections" means 99.1 percent of total

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collections less the service charge prescribed in s. 215.20.

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     (17)(14) "Distributing agent" means every person, firm or

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corporation in this state who acts as an agent for any person,

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firm or corporation outside or inside the state by receiving

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cigarettes in interstate or intrastate commerce and storing such

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cigarettes subject to distribution or delivery upon order from

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said principal to wholesale dealers and other distributing agents

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inside or outside this state.

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     (18)(15) "Place of business" means any place where

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cigarettes are sold or where cigarettes are stored or kept for

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the purpose of sale or consumption; or if cigarettes are sold

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from a vending machine the place in which the vending machine is

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located.

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     (19)(16) "Manufacturer's representative" means a person who

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represents a manufacturer of cigarettes but who has no place of

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business in this state where cigarettes are stored. A

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manufacturer's representative is required to obtain any

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cigarettes required by her or him through a wholesale dealer in

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this state and to make such reports as may be required by the

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Division of Alcoholic Beverages and Tobacco of the Department of

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Business and Professional Regulation.

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     (20)(17) "Exporter" means a person who transports user-fee-

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exempt or tax-exempt cigarettes into this state under bond for

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delivery beyond the borders of this state. Each permit shall

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entitle the permittee to store such cigarettes under bond at one

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location in this state pending shipment beyond the borders of

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this state.

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     (21)(18) "Unstamped package" or "unstamped cigarettes"

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means a package on which the user fee tax required by this part

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has not been paid, regardless of whether or not such package is

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stamped or marked with the indicia of any other user fee

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assessment or taxing authority, or a package on which there has

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been affixed a counterfeit or fraudulent indicium or stamp.

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

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be placed on cigarette packages that evidence payment of the user

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fee tax on cigarettes under s. 210.02.

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

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

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directly or indirectly, a finished cigarette for sale or

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distribution.

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     (24)(21) "Manufacturer" means any domestic person or entity

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

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fabricates, assembles, processes, or labels a finished cigarette.

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     (25)(22) "Counterfeit cigarettes" means cigarettes that

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have false manufacturing labels, tobacco product packs with

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counterfeit user fee tax stamps, or any combination thereof.

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     Section 3.  Section 210.02, Florida Statutes, is amended to

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read:

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     210.02 Cigarette user fee tax imposed; collection.--

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     (1) A user fee An excise or privilege tax, in addition to

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all other fees taxes of every kind imposed by law, is imposed

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upon the sale, receipt, purchase, possession, consumption,

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handling, distribution, and use of cigarettes in this state, in

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the following amounts, except as hereinafter otherwise provided,

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for cigarettes of standard dimensions:

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     (a)  Upon all cigarettes weighing not more than 3 pounds per

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thousand, 66.95 16.95 mills on each cigarette.

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     (b)  Upon all cigarettes weighing more than 3 pounds per

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thousand and not more than 6 inches long, 133.9 33.9 mills on

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each cigarette.

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     (c)  Upon all cigarettes weighing more than 3 pounds per

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thousand and more than 6 inches long, 267.8 67.8 mills on each

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cigarette.

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     (2)  The description of cigarettes contained in paragraphs

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(a), (b), and (c) of subsection (1) are hereby declared to be

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standard as to dimensions for the taxing purposes of assessing a

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user fee as provided in this law and should any cigarette be

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received, purchased, possessed, sold, offered for sale, given

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away, or used of a size other than of standard dimensions, the

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same shall be assessed taxed at the rate of 5.69 1.41 cents on

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each such cigarette.

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     (3)  When cigarettes as described in paragraph (1)(a) are

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packed in varying quantities of 20 cigarettes or less, except

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manufacturer's free samples authorized under s. 210.04(9), the

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following rate shall govern:

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     (a)  Packages containing 10 cigarettes or less require a

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66.9-cent user fee 16.95-cent tax.

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     (b)  Packages containing more than 10 but not more than 20

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cigarettes require a 133.9-cent user fee 33.9-cent tax.

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     (4)  When cigarettes as described in paragraph (1)(b) are

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packed in varying quantities of 20 cigarettes or less, except

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manufacturer's free samples authorized under s. 210.04(9), the

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following rates shall govern:

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     (a)  Packages containing 10 cigarettes or less require a

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133.9-cent user fee 33.9-cent tax.

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     (b)  Packages containing more than 10 but not more than 20

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cigarettes require a 267.8-cent user fee 67.8-cent tax.

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     (5)  When cigarettes as described in paragraph (1)(c) are

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packed in varying quantities of 20 cigarettes or less, except

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manufacturer's free samples authorized under s. 210.04(9), the

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following rates shall govern:

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     (a)  Packages containing 10 cigarettes or less require a

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267.8-cent user fee 67.8-cent tax.

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     (b)  Packages containing more than 10 but not more than 20

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cigarettes require a 535.6-cent user fee 135.6-cent tax.

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     (6) This user fee tax shall be paid by the dealer to the

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division for deposit and distribution as hereinafter provided

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upon the first sale or transaction within the state, whether or

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not such sale or transfer be to the ultimate purchaser or

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consumer. The seller or dealer shall collect the user fee tax

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from the purchaser or consumer, and the purchaser or consumer

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shall pay the user fee tax to the seller. The seller or dealer

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shall be responsible for the collection of the user fee tax and

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the payment of the same to the division. All user fees collected

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pursuant to this section taxes are due not later than the 10th

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day of the month following the calendar month in which they were

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incurred, and thereafter shall bear interest at the rate of 1

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percent per month. If the amount of user fee proceeds tax due for

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a given period is assessed without allocating it to any

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particular month, the interest shall begin with the date of the

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assessment. Whenever cigarettes are shipped from outside the

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state to anyone other than a distributing agent or wholesale

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dealer, the person receiving the cigarettes shall be responsible

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for the user fee tax on said cigarettes and the payment of same

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to the division.

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     (7) It is the legislative intent that the user fee tax on

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cigarettes shall be uniform throughout the state.

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     Section 4.  Section 210.021, Florida Statutes, is amended to

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read:

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     210.021 Payment of user fees taxes by certified check or

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electronic funds transfer.--

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     (1)  The Secretary of Business and Professional Regulation

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may require a dealer who sells cigarettes within the state to

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remit by certified check or electronic funds transfer any user

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fee tax imposed under s. 210.02.

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     (2)  The Secretary of Business and Professional Regulation

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shall require for a period not to exceed 12 months that a dealer

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or agent, during the dealer's or agent's initial period of

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licensure or appointment, remit by certified check or electronic

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funds transfer any user fee tax imposed under s. 210.02.

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     (3)  The division shall adopt rules pursuant to ss.

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120.536(1) and 120.54 to administer this section.

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     Section 5.  Section 210.03, Florida Statutes, is amended to

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read:

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     210.03 Prohibition against levying of cigarette user fees

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taxes by municipalities.--No municipality shall, after July 1,

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1972, levy or collect any user fee excise tax on cigarettes.

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     Section 6.  Section 210.04, Florida Statutes, is amended to

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read:

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     210.04  Construction; exemptions; collection.--

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     (1) The amount of user fees taxes advanced and paid to the

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state aforesaid shall be added to and collected as a part of the

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sales price of the cigarettes sold or distributed, which amount

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may be stated separately from the price of the cigarettes on all

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display signs, sales and delivery slips, bills and statements

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which advertise or indicate the price of the product.

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     (2) The cigarette user fee tax imposed shall be collected

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only once upon the same package or container of such cigarettes.

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     (3) No user fee tax shall be imposed by this part upon

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cigarettes not within the taxing power of the state under the

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Commerce Clause of the United States Constitution.

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     (4) No user fee tax shall be required to be paid:

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     (a)  Upon cigarettes sold at post exchanges, ship service

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stores, ship stores, slop chests, or base exchanges to members of

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the Armed Services of the United States when such post exchanges,

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ship service stores, or base exchanges are operated under

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regulations of the Army, Navy, or Air Force of the United States

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on military, naval, or air force reservations in this state or

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when such ship stores or slop chests are operated under the

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regulations of the United States Navy on ships of the United

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States Navy; however, it is unlawful for anyone, including

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members of the Armed Services of the United States, to purchase

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such user-fee-exempt or tax-exempt cigarettes for purposes of

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resale. Any person who resells, or offers for resale, user-fee-

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exempt or tax-exempt cigarettes purchased at post exchanges, ship

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service stores, ship stores, slop chests, or base exchanges is

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guilty of a violation of the cigarette user fee tax law,

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punishable as provided in s. 210.18(1).

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     (b)  Upon the sale or gift of cigarettes by charitable

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organizations to bona fide patients in regularly established

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government veterans' hospitals in Florida for the personal use or

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consumption of such patients.

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     (5)  It shall be presumed that all cigarettes are subject to

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the user fee tax imposed by this part until the contrary is

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established, and the burden of proof that they are not assessable

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taxable shall be upon the person having possession of them.

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     (6)  The sale of single or loose unpacked cigarettes is

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prohibited. The division may authorize any person to give away

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sample packages of cigarettes, each to contain not less than two

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cigarettes upon which the user fees taxes have been paid.

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     (7)  Nothing in this part shall be construed to prohibit the

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sale of cigarettes, upon which the user fee tax has been

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advanced, through the medium of vending machines where the user

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fee tax is collected by the said vending machines.

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     (8)  Except as hereinafter provided, all agents shall be

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liable for the collection and payment of the user fee tax imposed

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by this part and shall pay the user fee tax to the division by

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purchasing, under such regulations as it shall prescribe,

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adhesive stamps of such design and denominations as it shall

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prescribe.

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     (9)  Agents, located within or without the state, shall

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purchase stamps and affix such stamps in the manner prescribed to

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packages or containers of cigarettes to be sold, distributed, or

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given away within the state, in which case any dealer

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subsequently receiving such stamped packages of cigarettes will

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not be required to purchase and affix stamps on such packages of

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cigarettes. However, the division may, in its discretion,

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authorize manufacturers to distribute in the state free sample

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packages of cigarettes containing not less than 2 or more than 20

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cigarettes without affixing any user fee tax stamps provided

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copies of shipping invoices on such cigarettes are furnished, and

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payment of all user fees taxes imposed on such cigarettes by law

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is made, directly to the division not later than the 10th day of

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each calendar month. The user fee tax on cigarettes in sample

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packages shall be based on a unit in accordance with the

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assessment taxing provisions of s. 210.02(1).

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     Section 7.  Section 210.05, Florida Statutes, is amended to

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read:

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     210.05  Preparation and sale of stamps; discount.--

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     (1) The user fee tax imposed by this part shall be paid by

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affixing stamps in the manner herein set forth or by affixing

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stamp insignia through the device of metering machines authorized

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in this part.

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     (2)  The division shall prescribe, prepare, and furnish

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stamps of such denominations and quantities as may be necessary

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for the payment of the user fee tax imposed by this part, and may

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from time to time and as often as it deems advisable provide for

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the issuance and exclusive use of stamps of a new design and

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forbid the use of stamps of any other design. However, all stamps

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prescribed by the division must be designed and furnished in a

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fashion that permits identification of the agent or wholesale

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dealer that affixed the stamp to the particular package of

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cigarettes by means of a serial number or other mark on the

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stamp. The division shall make provisions for the sale of such

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stamps at such places and at such time as it may deem necessary.

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     (3)(a)  The division may appoint dealers in cigarettes,

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manufacturers of cigarettes, within or without the state as agent

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to buy or affix stamps to be used in paying the user fee tax

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herein imposed, but an agent shall at all times have the right to

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appoint a person in his or her employ who is to affix the stamps

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to any cigarettes under the agent's control; provided, however,

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that any wholesale dealer in the state shall have the right to

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buy and affix such stamps. Whenever the division shall sell and

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deliver to any such agent or wholesaler any such stamps, such

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agent or wholesaler shall be entitled to receive as compensation

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for his or her services and expenses as such agent or wholesaler

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in affixing and accounting for the user fees taxes represented by

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such stamps and to retain out of the moneys to be paid by the

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agent or wholesaler for such stamps a discount of 2 percent of

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the par value of any amount of stamps purchased during any fiscal

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year from July 1 through June 30 of the following year, provided

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the discount shall be computed on the basis of 24 cents per pack.

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No such discount shall be allowed to a dealer, vendor, or

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distributor who sells or deals in any form of candy which

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resembles drug paraphernalia. Stamping locations approved by the

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division shall be responsible for computing the discount they

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receive pursuant to this paragraph, and said computations shall

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be retained by the stamping location for a period of 5 years and

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shall be available to the division. All stamps purchased from the

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division under this part shall be paid for in cash on delivery,

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except as hereinafter provided.

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     (b)  Each agent appointed by the division to affix stamps

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shall be authorized to purchase stamps by furnishing an

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irrevocable letter of credit or unconditional guaranty contract

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or by executing bond with a solvent surety company qualified to

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do business in this state, in an amount of 110 percent of the

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agent's estimated user fee tax liability for 30 days, but not

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less than $2,000, conditioned upon said agent paying all user

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fees taxes due the state arising hereunder. This form of payment

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in lieu of cash on delivery or its equivalent shall not preclude

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supplemental purchases for cash. Payment for each month's

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liability shall be due on or before the 10th day of the month

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following the month in which the stamps were sold. Default in the

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aforesaid bonding and payment provisions by any agent may result

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in the revocation of his or her privilege to purchase stamps

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except for cash on delivery for a period up to 12 months in the

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discretion of the division.

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     (4)  The division may in its discretion revoke the authority

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of any agent failing to comply with the requirements of this part

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or the rules and regulations promulgated hereunder and such agent

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may in addition be punished in accordance with the provisions of

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this part.

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     (5)  Agents or wholesale dealers may sell stamped but

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unassessed untaxed cigarettes to the Seminole Indian Tribe, or to

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members thereof, for retail sale. Agents or wholesale dealers

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shall treat such cigarettes and the sale thereof in the same

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manner, with respect to reporting and stamping, as other sales

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under this part, but agents or wholesale dealers shall not

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collect from the purchaser the user fee tax imposed by s. 210.02.

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The purchaser hereunder shall be responsible to the agent or

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wholesale dealer for the services and expenses incurred in

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affixing the stamps and accounting therefor.

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     Section 8.  Section 210.06, Florida Statutes, is amended to

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read:

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     210.06  Affixation of stamps; presumption.--

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     (1)  Every dealer within the state shall affix or cause to

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be affixed to such package or container of such cigarettes such

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stamps as are required under this section within 10 days after

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receipt of such products. Dealers outside this state shall affix

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such stamps before the shipment of cigarettes into this state.

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

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packages intended for sale or distribution to consumers subject

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to the user fee tax imposed under s. 210.02, except as otherwise

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provided in this part.

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     (b)  No stamp shall be applied to any cigarette package

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exempt from a user fee or tax under 26 U.S.C. s. 5704 that is

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distributed by a manufacturer pursuant to federal regulations.

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     (c)  Dealers may apply stamps only to cigarette packages

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received directly from a manufacturer or importer of cigarettes,

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or a distributing agent representing a manufacturer or importer

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of cigarettes, who possesses a valid and current permit under

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this part.

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     (2)  Each retail dealer shall open such box, carton or other

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container of cigarettes prior to exposing for sale or selling

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such cigarettes and examine the packages contained therein for

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the purpose of ascertaining whether or not the said packages have

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affixed thereto the proper user fee tax stamp. If unstamped or

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improperly stamped packages of cigarettes are discovered, the

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retail dealer shall immediately notify the dealer from whom said

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cigarettes were purchased. Upon such notification, the dealer

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from whom said cigarettes were purchased shall replace such

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unstamped or improperly stamped packages of cigarettes with those

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upon which stamps have been properly affixed, or immediately

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affix thereto the proper amount of stamps.

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     (3)  Whenever any cigarettes are found in the place of

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business of any such retail dealer, or in the possession of any

392

other person without the stamps affixed, the presumption shall be

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that such cigarettes are kept in violation of the provisions of

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this law.

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     (4)  Stamps shall be affixed to each package of cigarettes

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of an aggregate denomination not less than the amount of the user

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fee tax upon the contents therein, and shall be affixed in such

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manner as to be visible to the purchaser. All stamps shall be

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affixed in the manner prescribed by the division. The state may

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not impose an additional charge on stamps for printing costs.

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     (5)  Except as provided in s. 210.04(9) or s. 210.09(1), no

402

person, other than a dealer or distributing agent that receives

403

unstamped cigarette packages directly from a cigarette

404

manufacturer or importer in accordance with this section and s.

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210.085, shall hold or possess an unstamped cigarette package.

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Dealers shall be permitted to set aside, without application of

407

stamps, only such part of the dealer's stock that is identified

408

for sale or distribution outside this state. If a dealer

409

maintains stocks of unstamped cigarette packages, such unstamped

410

packages shall be stored separately from stamped product

411

packages. No unstamped cigarette packages shall be transferred by

412

a dealer to another facility of the dealer within this state or

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to another person within this state.

414

     Section 9.  Section 210.07, Florida Statutes, is amended to

415

read:

416

     210.07  Metering machines.--

417

     (1)(a) The user fee tax may also be paid through the use of

418

cigarette user fee tax stamp insignia to be applied by the use of

419

metering machines. The division shall prescribe and promulgate

420

appropriate rules and regulations governing the use of metering

421

machines, the procedure for the payment of such cigarette user

422

fees taxes through the use thereof, requiring adequate surety

423

bonds of the users thereof to assure the proper use of such

424

machines and payment of all cigarette user fees taxes that might

425

come due by the users thereof, and all other rules and

426

regulations necessary and proper to govern the use of same.

427

     (b)  The provisions of s. 210.05(3)(a) and (b) shall be

428

applicable to cigarette user fees taxes paid through the use of

429

metering machines.

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     (2)  All provisions of this part governing the use of

431

cigarette user fee tax stamps, the compiling of records, the

432

making of reports, permits and revocation of permits, seizures

433

and forfeitures, penalties, and all other provisions pertaining

434

to the payment of cigarette user fees taxes through the use of

435

stamps, shall likewise be applicable to the payment of said user

436

fees taxes through the use of metering machines.

437

     (3)  Wholesale or retail dealers of cigarettes owning,

438

leasing, furnishing, or operating cigarette vending machines

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shall affix to each such machine, in a conspicuous place, an

440

identification sticker furnished by the division. Every sticker

441

shall show the vending machine serial number and the name and

442

address of the cigarette wholesale or retail dealer owning,

443

leasing, furnishing, or operating said vending machine.

444

     (4)  No vending machine shall be allowed to operate in the

445

state that does not have affixed thereto the identification

446

sticker required by this section nor shall any vending machine be

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allowed to operate in the state that does not display at all

448

times at least one package of each brand of the packages located

449

therein so the same are clearly visible and arranged in such a

450

manner that the cigarette user fee tax stamps or meter

451

impressions of stamps affixed thereto are clearly visible. It

452

shall be the duty of any person, firm or corporation operating a

453

cigarette vending machine in this state to furnish the division

454

the location of the vending machine and to report within 30 days

455

to the division any change of location of the vending machine.

456

     Section 10.  Section 210.08, Florida Statutes, is amended to

457

read:

458

     210.08 Bond for payment of user fees taxes.--Each dealer,

459

agent, or distributing agent shall file with the division a

460

surety bond, certificate of deposit, or irrevocable letter of

461

credit acceptable to the division in an amount equal to 110

462

percent of the estimated user fee tax liability for 30 days, but

463

not less than $2,000.

464

     Section 11.  Subsections (2) and (3) of section 210.09,

465

Florida Statutes, are amended to read:

466

     210.09  Records to be kept; reports to be made;

467

examination.--     

468

     (2)  The division is authorized to prescribe and promulgate

469

by rules and regulations, which shall have the force and effect

470

of the law, such records to be kept and reports to be made to the

471

division by any manufacturer, importer, distributing agent,

472

wholesale dealer, retail dealer, common carrier, or any other

473

person handling, transporting or possessing cigarettes for sale

474

or distribution within the state as may be necessary to collect

475

and properly distribute the user fees taxes imposed by s. 210.02.

476

All reports shall be made on or before the 10th day of the month

477

following the month for which the report is made, unless the

478

division by rule or regulation shall prescribe that reports be

479

made more often.

480

     (3)  All manufacturers, importers, distributing agents,

481

wholesale dealers, agents, or retail dealers shall maintain and

482

keep for a period of 3 years at the place of business where any

483

transaction takes place, such records of cigarettes received,

484

sold, or delivered within the state as may be required by the

485

division. The division or its duly authorized representative is

486

hereby authorized to examine the books, papers, invoices, and

487

other records, the stock of cigarettes in and upon any premises

488

where the same are placed, stored, and sold, and the equipment of

489

any such manufacturers, importers, distributing agents, wholesale

490

dealers, agents, or retail dealers, pertaining to the sale and

491

delivery of cigarettes assessable taxable under this part. To

492

verify the accuracy of the user fee tax imposed and assessed by

493

this part, each person is hereby directed and required to give to

494

the division or its duly authorized representatives the means,

495

facilities, and opportunity for such examinations as are herein

496

provided for and required.

497

     Section 12.  Section 210.11, Florida Statutes, is amended to

498

read:

499

     210.11 Refunds; sales of stamps and payment of user fee

500

tax.--Whenever any cigarettes upon which stamps have been placed,

501

or upon which the user fee tax has been paid by metering machine,

502

have been sold and shipped into another state for sale or use

503

therein, or have become unfit for use and consumption or

504

unsalable, or have been destroyed, the dealer involved shall be

505

entitled to a refund or credit of the actual amount of the user

506

fee tax paid with respect to such cigarettes less any discount

507

allowed by the division in the sale of the stamps or payment of

508

the user fee tax by metering machine, upon receipt of

509

satisfactory evidence of the dealer's right to receive such

510

refund or credit, provided application for refund or credit is

511

made within 9 months of the date the cigarettes were shipped out

512

of the state, became unfit, or were destroyed. Only the division

513

shall sell, or offer for sale, any stamp or stamps issued under

514

this part. The division may redeem unused stamps lawfully in the

515

possession of any person. The division may prescribe necessary

516

rules and regulations concerning refunds, credits, sales of

517

stamps, and redemptions under the provisions of this part.

518

Appropriation is hereby made out of revenues collected under this

519

part for payment of such allowances.

520

     Section 13.  Section 210.13, Florida Statutes, is amended to

521

read:

522

     210.13 Determination of user fee tax on failure to file a

523

return.--If a dealer fails to file any return required under this

524

part, or having filed an incorrect or insufficient return, fails

525

to file a correct or sufficient return, as the case may require,

526

within 10 days after the giving of notice to the dealer by the

527

Division of Alcoholic Beverages and Tobacco that such return or

528

corrected or sufficient return is required, the division shall

529

determine the amount of user fee tax due by such dealer any time

530

within 3 years after the making of the earliest sale included in

531

such determination and give written notice of such determination

532

to such dealer. Such a determination shall finally and

533

irrevocably fix the user fee tax unless the dealer against whom

534

it is assessed shall, within 30 days after the giving of notice

535

of such determination, apply to the division for a hearing.

536

Judicial review shall not be granted unless the amount of the

537

user fee tax stated in the decision, with penalties thereon, if

538

any, shall have been first deposited with the division, and an

539

undertaking or bond filed in the court in which such cause may be

540

pending in such amount and with such sureties as the court shall

541

approve, conditioned that if such proceeding be dismissed or the

542

decision of the division confirmed, the applicant for review will

543

pay all costs and charges which may accrue against the applicant

544

in the prosecution of the proceeding. At the option of the

545

applicant, such undertaking or bond may be in an additional sum

546

sufficient to cover the user fees tax, penalties, costs, and

547

charges aforesaid, in which event the applicant shall not be

548

required to pay such user fees tax and penalties precedent to the

549

granting of such review by such court.

550

     Section 14.  Section 210.14, Florida Statutes, is amended to

551

read:

552

     210.14 Warrant for collection of user fees taxes.--

553

     (1)  In addition to all other remedies for the collection of

554

any user fees taxes due under the provisions of this part, the

555

division may issue a warrant under its official seal, which

556

warrant may be filed by the division in the office of the clerk

557

of the circuit court of any county where the delinquent person

558

taxpayer owns property. Upon presentation of the warrant, the

559

clerk of the circuit court shall enter it in the judgment docket.

560

The name of the person mentioned in the warrant, the amount of

561

the user fee tax and penalties for which the warrant was issued,

562

and the date such copy was filed shall be included in the record

563

of the warrant. The clerk shall be allowed the same fees as are

564

allowed by law for similar services rendered in judgment

565

execution proceedings. The warrant issued by the division may

566

then be directed to the sheriff of any county commanding that

567

sheriff to levy upon and sell the goods and chattels of the

568

specified delinquent person found within the sheriff's

569

jurisdiction, for the payment of the amount of such delinquency

570

plus a penalty equal to 50 percent of the amount thereof, and

571

interest on the total at 1 percent per month and the cost of

572

executing the warrant, and to return such warrant to the division

573

and to pay it the money collected by virtue thereof within 60

574

days after receipt of such warrant.

575

     (2)  The amount of the warrant docketed pursuant to

576

subsection (1) shall become a lien upon the title to or the

577

interest in real or personal property of the person against whom

578

the warrant is issued. The sheriff to whom any such warrant is

579

directed shall proceed upon the warrant in all respects and with

580

like effect and in the same manner as prescribed by law in

581

respect to executions issued against goods and chattels upon

582

judgments by a court of record, and the sheriff shall be entitled

583

to the same fees for his or her services in executing the warrant

584

to be collected in the same manner.

585

     (3)  In the discretion of the division, a warrant of like

586

terms, force, and effect may be issued and directed to any

587

officer or employee of the division; and in the execution thereof

588

such officer or employee shall have all the power conferred by

589

law upon sheriffs, but shall be entitled to no fee or

590

compensation in excess of the actual expenses paid in the

591

performance of such duty. If a warrant is returned not satisfied

592

in full, the division may from time to time issue new warrants

593

and shall also have the same remedies to enforce the amount due

594

thereunder as if the state had recovered judgment therefor and

595

execution thereon had been returned satisfied.

596

     Section 15.  Paragraphs (c) and (h) of subsection (1), and

597

subsection (2) of section 210.15, Florida Statutes, are amended

598

to read:

599

     210.15  Permits.--

600

     (1)

601

     (c)  No permit under this part or chapter 569 shall be

602

issued, maintained, or renewed if the applicant, its officers, or

603

any person or persons owning directly or indirectly, in the

604

aggregate, more than 10 percent of the ownership interests in the

605

applicant:

606

     1.  Has been finally adjudicated as owing $500 or more in

607

delinquent cigarette user fees taxes;

608

     2.  Had a permit revoked by the division within the previous

609

2 years;

610

     3.  Has been convicted of selling stolen or counterfeit

611

cigarettes, receiving stolen cigarettes, or being involved in the

612

counterfeiting of cigarettes;

613

     4.  Has been convicted within the past 5 years of any

614

offense against the cigarette laws of this state or convicted in

615

this state, any other state, or the United States during the past

616

5 years of any offense designated as a felony by such state or

617

the United States, or to a corporation, any of whose officers

618

have been so convicted. The term "convicted" shall include an

619

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

620

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

621

crime;

622

     5.  Has imported, or caused to be imported, into the United

623

States any cigarette in violation of 19 U.S.C. s. 1681a; or

624

     6.  Has imported, or caused to be imported, into the United

625

States, or manufactured for sale or distribution in the United

626

States, any cigarette that does not fully comply with the Federal

627

Cigarette Labeling and Advertising Act (15 U.S.C. ss. 1331 et

628

seq.).

629

     (h)  No retail sales of cigarettes may be made at a location

630

for which a wholesale dealer, distributing agent, or exporter

631

permit has been issued. The user fee excise tax on sales made to

632

any traveling location, such as an itinerant store or industrial

633

caterer, shall be paid into the General Revenue Fund unallocated.

634

Cigarettes may be purchased for retail purposes only from a

635

person holding a wholesale dealer permit. The invoice for the

636

purchase of cigarettes must show the place of business for which

637

the purchase is made and the cigarettes cannot be transferred to

638

any other place of business for the purpose of resale.

639

     (2)  The division may not furnish stamps or approve the use

640

of meter machines to evidence the payment of the user fees taxes

641

on cigarettes except to qualified wholesale dealers.     

642

     Section 16.  Section 210.18, Florida Statutes, is amended to

643

read:

644

     210.18 Penalties for user fee tax evasion; reports by

645

sheriffs.--

646

     (1)  Any person who possesses or transports any unstamped

647

packages of cigarettes upon the public highways, roads, or

648

streets in the state for the purpose of sale; or who sells or

649

offers for sale unstamped packages of cigarettes in violation of

650

the provisions of this part; or who willfully attempts in any

651

manner to evade or defeat any user fee tax imposed by this part,

652

or the payment thereof, is guilty of a misdemeanor of the first

653

degree, punishable as provided in s. 775.082 or s. 775.083. Any

654

person who has been convicted of a violation of any provision of

655

the cigarette user fee tax law and who is thereafter convicted of

656

a further violation of the cigarette user fee tax law is, upon

657

conviction of such further offense, guilty of a felony of the

658

third degree, punishable as provided in s. 775.082, s. 775.083,

659

or s. 775.084.

660

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

661

person who fails, neglects, or refuses to comply with, or

662

violates the provisions of, this part or the rules adopted by the

663

division under this part commits a misdemeanor of the first

664

degree, punishable as provided in s. 775.082 or s. 775.083. Any

665

person who has been convicted of a violation of any provision of

666

the cigarette user fee tax law and who is thereafter convicted of

667

a further violation of the cigarette user fee tax law is, upon

668

conviction of such further offense, guilty of a felony of the

669

third degree, punishable as provided in s. 775.082, s. 775.083,

670

or s. 775.084.

671

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

672

alters, or counterfeits any stamp or impression die used in meter

673

machines prescribed by the division under the provisions of this

674

part; or, with intent to evade user fees taxes, jams, tampers

675

with, or alters such a machine; or causes or procures to be

676

falsely or fraudulently made, forged, altered, or counterfeited

677

any such stamp or die; or knowingly and willfully utters,

678

purchases, passes or tenders as true any such false, altered, or

679

counterfeited stamp or die impression; or, with the intent to

680

defraud the state, fails to comply with any other requirement of

681

this part commits a felony of the third degree, punishable as

682

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

683

     (4)(a)  Any person or corporation that owns or is in

684

possession of any cigarettes upon which a user fee tax is imposed

685

by the cigarette law, or would be imposed if such cigarettes were

686

manufactured in or brought into this state in accordance with the

687

regulatory provisions of the cigarette law, and upon which such

688

user fee tax has not been paid is, in addition to the fines and

689

penalties otherwise provided in the cigarette law, personally

690

liable for the amount of the user fee tax imposed on such

691

cigarettes; and the division may collect such user fee tax from

692

such person or corporation by suit or by restitution if the

693

person taxpayer is convicted, found guilty, or pleads nolo

694

contendere or guilty to any crime under this chapter. This

695

paragraph is applicable even if adjudication is withheld.

696

     (b)  This subsection does not apply to a manufacturer or

697

distributor licensed under the cigarette law, to a state bonded

698

warehouse, or to a person possessing not in excess of three

699

cartons of such cigarettes, which cigarettes were purchased by

700

such possessor outside the state in accordance with the laws of

701

the place where purchased and brought into this state by such

702

possessor. The burden of proof that such cigarettes were

703

purchased outside the state and in accordance with the laws of

704

the place where purchased shall in all cases be upon the

705

possessor of such cigarettes.

706

     (5)(a) All cigarettes on which user fees taxes are imposed

707

by the cigarette law, or would be imposed if such cigarettes were

708

manufactured in or brought into this state in accordance with the

709

regulatory provisions of such law, which are found in the

710

possession or custody or within the control of any person for the

711

purpose of being sold or removed by him or her in fraud of the

712

cigarette law or with design to evade payment of such user fees

713

taxes may be seized by the division or any supervisor, sheriff,

714

deputy sheriff, or other law enforcement agent and shall be

715

forfeited to the state.

716

     (b)  This subsection does not apply to a person possessing

717

not in excess of three cartons of cigarettes, which cigarettes

718

were purchased by such possessor outside the state in accordance

719

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

720

state by such possessor.

721

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

722

licensee under the provisions of this part, who possesses,

723

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

724

removing, depositing, or concealing of, any unstamped cigarettes

725

not in excess of 50 cartons is guilty of a misdemeanor of the

726

second degree, punishable as provided in s. 775.082 or s.

727

775.083. In lieu of the penalties provided in those sections,

728

however, the person, firm, or corporation may pay the user fee

729

tax plus a penalty equal to the amount of the user fee tax

730

authorized under s. 210.02 on the unstamped cigarettes.

731

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

732

licensee under the provisions of this part, who possesses,

733

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

734

removing, depositing, or concealing of, any unstamped cigarettes

735

in excess of 50 cartons is presumed to have knowledge that they

736

have not been assessed the user fee taxed and is guilty of a

737

felony of the third degree, punishable as provided in s. 775.082,

738

s. 775.083, or s. 775.084.

739

     (c)  This section does not apply to a person possessing not

740

in excess of three cartons of such cigarettes purchased by such

741

possessor outside the state in accordance with the laws of the

742

place where purchased and brought into this state by such

743

possessor. The burden of proof that such cigarettes were

744

purchased outside the state and in accordance with the laws of

745

the place where purchased shall in all cases be upon the

746

possessor of such cigarettes.

747

     (7)  Any sheriff, deputy sheriff, police officer, or state

748

law enforcement officer, upon the seizure of any unstamped

749

cigarettes under this section, shall promptly report such seizure

750

to the division or its representative, together with a

751

description of all such unstamped cigarettes seized, so that the

752

state may be kept informed as to the size and magnitude of the

753

illicit cigarette business. The division shall keep records

754

showing the number of seizures and seized cigarettes reported to,

755

or seized by, the division.

756

     (8)(a)  It is unlawful for any person to conspire with any

757

other person or persons to do any act in violation of the

758

provisions of this part, when any one or more of such persons

759

does or commits any act to effect the object of the conspiracy.

760

     (b)  Any person who violates the provisions of this

761

subsection:

762

     1.  If the act conspired to be done would constitute a

763

misdemeanor, is guilty of a misdemeanor of the second degree,

764

punishable as provided in s. 775.082 or s. 775.083.

765

     2.  If the act conspired to be done would constitute a

766

felony, is guilty of a felony of the third degree, punishable as

767

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

768

     (9)  Notwithstanding any other provision of law, the sale or

769

possession for sale of counterfeit cigarettes by any person or by

770

a manufacturer, importer, distributing agent, wholesale dealer,

771

or retail dealer shall result in the seizure of the product and

772

related machinery by the division or any law enforcement agency.

773

     (10)  It is unlawful to sell or possess with the intent to

774

sell counterfeit cigarettes, as defined in s. 210.01(22).

775

     (a)  A person who does not hold a permit or holds a retail

776

permit under the provisions of this chapter and who violates this

777

subsection commits a felony of the third degree, punishable as

778

provided in s. 775.082, s. 775.083, or s. 775.084, and is subject

779

to the imposition of fines and additional penalties as follows:

780

     1.  If the quantity of counterfeit cigarettes sold or

781

possessed with the intent to sell is less than two cartons or the

782

equivalent, the fine for a first violation shall not exceed

783

$1,000 or five times the retail value of the counterfeit

784

cigarettes, whichever is greater. A subsequent violation may

785

result in the imposition of a fine not to exceed $5,000 or five

786

times the retail value of the counterfeit cigarettes, whichever

787

is greater, and shall result in revocation of the retail permit

788

by the division.

789

     2.  If the quantity of counterfeit cigarettes sold or

790

possessed with the intent to sell is two cartons or more or the

791

equivalent, the fine for a first violation shall not exceed

792

$2,000 or five times the retail value of the counterfeit

793

cigarettes, whichever is greater. A subsequent violation may

794

result in the imposition of a fine not to exceed $50,000 or five

795

times the retail value of the counterfeit cigarettes, whichever

796

is greater, and shall result in revocation of the retail permit

797

by the division.

798

     (b)  A person who holds a permit, other than a retail

799

permit, under the provisions of this chapter and who violates

800

this subsection commits a felony of the third degree, punishable

801

as provided in s. 775.082, s. 775.083, or s. 775.084, and is

802

subject to the imposition of fines and additional penalties as

803

follows:

804

     1.  If the quantity of counterfeit cigarettes sold or

805

possessed with the intent to sell is less than 10 cartons or the

806

equivalent, the fine for a first violation shall not exceed

807

$1,000 or five times the retail value of the counterfeit

808

cigarettes, whichever is greater. A subsequent violation may

809

result in the imposition of a fine not to exceed $5,000 or five

810

times the retail value of the counterfeit cigarettes, whichever

811

is greater, and shall result in revocation of the permit by the

812

division.

813

     2.  If the quantity of counterfeit cigarettes sold or

814

possessed with the intent to sell is 10 cartons or more or the

815

equivalent, the fine for a first violation shall not exceed

816

$2,000 or five times the retail value of the counterfeit

817

cigarettes, whichever is greater. A subsequent violation may

818

result in the imposition of a fine not to exceed $50,000 or five

819

times the retail value of the counterfeit cigarettes, whichever

820

is greater, and shall result in revocation of the permit by the

821

division.

822

823

For purposes of this subsection, any counterfeit cigarettes

824

seized by the division shall be destroyed.

825

     Section 17.  Subsection (2) of section 210.181, Florida

826

Statutes, is amended to read:

827

     210.181  Civil penalties.--     

828

     (2) Whoever fails to pay any user fee tax imposed by this

829

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

830

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

831

of five times the unpaid user fees tax due.

832

     Section 18.  Subsection (2) and paragraph (c) of subsection

833

(6) of section 210.185, Florida Statutes, are amended to read:

834

     210.185  Prohibition on sale or distribution of cigarettes;

835

criminal penalties; administrative sanctions; applicability.--

836

     (2)  DOCUMENTATION.--On or before the 10th day of each

837

month, each person permitted to affix the user fee tax stamp to

838

cigarettes shall file with the division, for all cigarettes

839

imported into the United States to which the person has affixed

840

the user fee tax stamp in the preceding month, a copy of the

841

permit issued under the Internal Revenue Code, 26 U.S.C. s. 5713,

842

to the person importing the cigarettes into the United States

843

which allows that person to import those cigarettes; a copy of

844

the customs form containing, with respect to the cigarettes, the

845

internal revenue tax information required by the United States

846

Bureau of Alcohol, Tobacco and Firearms; and a statement, signed

847

by an officer of the manufacturer or importer under penalty of

848

perjury, certifying that the manufacturer or importer has

849

complied with the package health warning and ingredient reporting

850

requirements of the Federal Cigarette Labeling and Advertising

851

Act, 15 U.S.C. ss. 1333 and 1335a, with respect to those

852

cigarettes.     

853

     (6)  GENERAL PROVISIONS.--

854

     (c)  In addition to any other remedy provided by law,

855

including enforcement as provided in paragraph (a), any person

856

may bring an action for appropriate injunctive or other equitable

857

relief for a violation of this section; for actual damages, if

858

any, sustained by reason of the violation; and, as determined by

859

the court, for interest on the damages from the date of the

860

complaint, assessable taxable costs, and reasonable attorney's

861

fees. If the trier of fact finds that the violation is flagrant,

862

it may increase recovery to an amount not in excess of 3 times

863

the actual damages sustained by reason of the violation.

864

     Section 19.  Section 210.19, Florida Statutes, is amended to

865

read:

866

     210.19  Records to be kept by division.--The division shall

867

keep records showing the total amount of user fees taxes

868

collected, which records shall be open to the public during the

869

regular office hours of the division. The division shall maintain

870

records that identify which agent or wholesale dealer affixed the

871

user fee tax stamp to each package of cigarettes. The identifying

872

records must be made available for public inspection and retained

873

for at least 3 years.

874

     Section 20.  Subsection (2) of section 210.20, Florida

875

Statutes, is amended to read:

876

     210.20  Employees and assistants; distribution of funds.--

877

     (2)(a) For purposes of this subsection, the term:

878

     1. "Agency" means the Agency for Health Care

879

Administration.

880

     2. "Cigarette user fee" means the user fee imposed by s.

881

210.02.

882

     3. "Council" means the Biomedical Research Advisory Council

883

within the Department of Health as established in s. 215.5602.

884

     4. "Reference year" means July 1, 2007, to June 30, 2008.

885

     5. "Total collections" means the total amount derived from

886

the cigarette user fee during a specified period of time.

887

     6. "Net collections" means 99.1 percent of the total

888

collections less the service charges provided for in s. 215.20.

889

     7. "Reference year allocation" means the total amount

890

credited or transferred from the Cigarette Tax Collection Trust

891

Fund to a particular trust fund or the General Revenue Fund

892

during the reference year divided by 12.

893

     8. "Total base allocation" means, for a given month, 8.333

894

percent of the average of the projected net collections for the

895

fiscal year containing such month, based on the most recent

896

estimates generated by a Revenue Estimating Conference convened

897

pursuant to s. 216.136(3), or net collections for such month,

898

whichever is less.

899

     (b) As collections are received by the division from the

900

user fee on cigarettes such cigarette taxes, it shall pay the

901

same into a trust fund in the State Treasury designated

902

"Cigarette Tax Collection Trust Fund." which shall be paid and

903

distributed as follows:

904

     (c)(a) The division shall from month to month certify to

905

the Chief Financial Officer the amount of net collections derived

906

from the cigarette user fee tax imposed by s. 210.02, less the

907

service charges provided for in s. 215.20 and less 0.9 percent of

908

the amount derived from the cigarette tax imposed by s. 210.02,

909

which shall be deposited into the Alcoholic Beverage and Tobacco

910

Trust Fund, specifying the amounts to be transferred from the

911

Cigarette Tax Collection Trust Fund and credited on the following

912

bases; however, the division shall first deposit monthly into the

913

Alcoholic Beverage and Tobacco Trust Fund an amount equal to the

914

sum of 0.9 percent of total collections and the service charge on

915

total collection provided for in s. 215.20 as follows:

916

     1. The sum of 0.8345 percent basis of 2.9 percent of the

917

total base allocation net collections to the Revenue Sharing

918

Trust Fund for Counties for distribution pursuant to the Florida

919

Revenue Sharing Act.

920

     2. The sum of 8.5857 percent and 29.3 percent of the total

921

base allocation to the Public Medical Assistance Trust Fund net

922

collections for the funding of indigent health care pursuant to

923

s. 409.918 to the Public Medical Assistance Trust Fund.

924

     3. The sum of 7.737 percent of the total base allocation to

925

the Public Medical Assistance trust Fund specifically to

926

contribute to the state share of funding for the low-income pool.

927

     4. The sum of 4.06 percent of the total base allocation to

928

the H. Lee Moffitt Cancer Center and Research Institute

929

established in s. 1004.43, which shall be paid on a monthly basis

930

to the center's Board of Directors by warrant drawn by the Chief

931

Financial Officer upon the State Treasury. The revenues derived

932

from this allocation are separate and distinct from any funds

933

allocated to the H. Lee Moffitt Cancer Center through the James

934

and Esther King Biomedical Research Program or the Bankhead-Coley

935

Cancer Research Program. Funds derived pursuant this subparagraph

936

are to be used for the purpose of constructing, furnishing, and

937

equipping cancer research, treatment, and related facilities. The

938

appropriation to the H. Lee Moffitt Cancer Center and Research

939

Institute authorized by this subparagraph shall not be less than

940

the amount that would have been paid to the H. Lee Moffitt and

941

Cancer Research Institute for fiscal year 2006-2007 had this

942

subparagraph been in effect.

943

     5. The sum of 6.01 percent of the total base allocation to

944

the Biomedical Research Trust Fund for distribution by the

945

Biomedical Research Advisory Council to grantees of the James and

946

Esther King Biomedical Research Program authorized pursuant to s.

947

215.5602 and the Bankhead-Coley Cancer Research Program

948

authorized pursuant to s. 381.922, with such programs dividing

949

equally the allocation derived from this subparagraph. The

950

provisions of ss. 215.5602 and 381.922 shall determine the

951

methods of distribution under the respective programs.

952

     6. The sum of 15.13 percent of the total base allocation to

953

the Medical Care Trust Fund for the funding of the Medically

954

Needy program established pursuant to 42 U.S.C. ss. 1396(a) and

955

(d) and 409.904(2).

956

     7.     The sum of 13.68 percent of the total base allocation

957

to the Medical Care Trust Fund for the funding of annual

958

adjustments to fee reimbursements made to physicians for services

959

provided for children under the Medicaid program so that

960

reimbursement rates for such services are made equal to the

961

Medicaid reimbursement rates as such rates existed on January 1,

962

2008.

963

     8. The sum of 1.01 percent of the total base allocation to

964

the Medical Care Trust Fund for the funding of children's health

965

care coverage through the Florida Kidcare program established in

966

ss. 409.810-409.820. It is the intent of the Legislature to use

967

cigarette user fee collections to increase enrollment of

968

previously uninsured children in the Florida Kidcare program and

969

minimize disruption of such coverage for children at risk for

970

involuntary or premature disenrollment from the program.

971

Therefore, for the purposes of this subparagraph, such credits

972

shall be made each month to the Medical Care Trust Fund as

973

follows:

974

     a. A percentage of the total base allocation shall first be

975

credited to fund efforts to ensure appropriate retention of

976

coverage by, and prevention of, the involuntary or premature

977

disenrollment from coverage for children enrolled in the Florida

978

Kidcare program during any month in which such children are not

979

subject to disenrollment under the laws and policies in effect,

980

but would have been subject to disenrollment if the laws and

981

policies governing the Florida Kidcare program in effect on June

982

30, 2008, had remained in effect during such month. The

983

percentage shall be determined by the agency for each fiscal year

984

based on the estimated amount needed to fully fund such retention

985

and prevention efforts, except that such percentage shall not

986

exceed one-tenth of the allocation in this subparagraph and shall

987

remain fixed throughout the fiscal year.

988

     b. A percentage of the total base allocation shall next be

989

credited to fund the coverage of children who are enrolled in the

990

Florida Kidcare program and covered under Title XXI of the Social

991

Security Act during any month. The percentage shall be determined

992

by the agency based on the estimated amount needed to fund

993

coverage for a number of children equal to the number enrolled in

994

the Florida Kidcare program and covered under Title XXI of the

995

Social Security Act during such month, as certified to the Chief

996

Financial Officer by the agency less the number of children

997

similarly enrolled and covered as of June 30, 2008. Such

998

percentage shall not exceed a percentage equal to 1.01 percent

999

less the percentage established pursuant to sub-subparagraph 8.a.

1000

     9. The sum of 3.452 percent of the total base allocation

1001

for the funding of medical residency and fellowship programs, as

1002

determined by the Legislature, with primary emphasis given to the

1003

establishment of residencies in the fields of oncology,

1004

cardiology, and pulmonary medicine.

1005

     10. The sum of 15.2409 percent of the total base allocation

1006

to the Medical Care Trust Fund for the funding of the MEDS-AD

1007

Waiver Program.

1008

     (b)1. Beginning January 1, 1999, and continuing for 10

1009

years thereafter, the division shall from month to month certify

1010

to the Chief Financial Officer the amount derived from the

1011

cigarette tax imposed by s. 210.02, less the service charges

1012

provided for in s. 215.20 and less 0.9 percent of the amount

1013

derived from the cigarette tax imposed by s. 210.02, which shall

1014

be deposited into the Alcoholic Beverage and Tobacco Trust Fund,

1015

specifying an amount equal to 2.59 percent of the net

1016

collections, and that amount shall be paid to the Board of

1017

Directors of the H. Lee Moffitt Cancer Center and Research

1018

Institute, established under s. 1004.43, by warrant drawn by the

1019

Chief Financial Officer upon the State Treasury. These funds are

1020

hereby appropriated monthly out of the Cigarette Tax Collection

1021

Trust Fund, to be used for the purpose of constructing,

1022

furnishing, and equipping a cancer research facility at the

1023

University of South Florida adjacent to the H. Lee Moffitt Cancer

1024

Center and Research Institute. In fiscal years 1999-2000 and

1025

thereafter with the exception of fiscal year 2008-2009, the

1026

appropriation to the H. Lee Moffitt Cancer Center and Research

1027

Institute authorized by this subparagraph shall not be less than

1028

the amount that would have been paid to the H. Lee Moffitt Cancer

1029

Center and Research Institute for fiscal year 1998-1999 had

1030

payments been made for the entire fiscal year rather than for a

1031

6-month period thereof.

1032

     2. Beginning July 1, 2002, and continuing through June 30,

1033

2004, the division shall, in addition to the distribution

1034

authorized in subparagraph 1., from month to month certify to the

1035

Chief Financial Officer the amount derived from the cigarette tax

1036

imposed by s. 210.02, less the service charges provided for in s.

1037

215.20 and less 0.9 percent of the amount derived from the

1038

cigarette tax imposed by s. 210.02, which shall be deposited into

1039

the Alcoholic Beverage and Tobacco Trust Fund, specifying an

1040

amount equal to 0.2632 percent of the net collections, and that

1041

amount shall be paid to the Board of Directors of the H. Lee

1042

Moffitt Cancer Center and Research Institute, established under

1043

s. 1004.43, by warrant drawn by the Chief Financial Officer.

1044

Beginning July 1, 2004, and continuing through June 30, 2016, the

1045

division shall, in addition to the distribution authorized in

1046

subparagraph 1., from month to month certify to the Chief

1047

Financial Officer the amount derived from the cigarette tax

1048

imposed by s. 210.02, less the service charges provided for in s.

1049

215.20 and less 0.9 percent of the amount derived from the

1050

cigarette tax imposed by s. 210.02, which shall be deposited into

1051

the Alcoholic Beverage and Tobacco Trust Fund, specifying an

1052

amount equal to 1.47 percent of the net collections, and that

1053

amount shall be paid to the Board of Directors of the H. Lee

1054

Moffitt Cancer Center and Research Institute, established under

1055

s. 1004.43, by warrant drawn by the Chief Financial Officer.

1056

These funds are appropriated monthly out of the Cigarette Tax

1057

Collection Trust Fund, to be used for the purpose of

1058

constructing, furnishing, and equipping a cancer research

1059

facility at the University of South Florida adjacent to the H.

1060

Lee Moffitt Cancer Center and Research Institute. In fiscal years

1061

2004-2005 and thereafter, the appropriation to the H. Lee Moffitt

1062

Cancer Center and Research Institute authorized by this

1063

subparagraph shall not be less than the amount that would have

1064

been paid to the H. Lee Moffitt Cancer Center and Research

1065

Institute in fiscal year 2001-2002, had this subparagraph been in

1066

effect.

1067

     (d) During any month, the total amount credited or

1068

transferred from the Cigarette Tax Collection Trust Fund for any

1069

of the uses provided in subparagraph (c)1., subparagraph (c)2.,

1070

or subparagraph (c)4. may not be less than the corresponding

1071

reference year allocation, otherwise, all other amounts to be

1072

transferred or credited pursuant to paragraph (c) must be reduced

1073

proportionately by the minimum amount necessary so that a

1074

reassignment of the total reduction amounts proportionately

1075

increases the amounts to be credited or transferred pursuant to

1076

subparagraph (c)1., subparagraph (c)2., or subparagraph (c)4. to

1077

their corresponding reference year allocation levels, except that

1078

if the sum of all reference year allocations exceeds the total

1079

base allocation, credits or transfers shall be made only for the

1080

latter three purposes in relatively proportionate amounts.

1081

     (e) If the total base allocation for a particular month

1082

exceeds the total base allocation for any previous month within

1083

the same fiscal year, the amounts to be credited or transferred

1084

for each of the purposes described in paragraph (c) shall be

1085

increased proportionately, subject to the availability of

1086

appropriations; however, the total supplemental allocation may

1087

not exceed an amount in accordance with the formula: SA = M x

1088

TBA(c) - TBA(i), where:

1089

     1. "SA" is the maximum total supplemental allocation for

1090

the current month.

1091

     2. "M" is the number of prior months in the current fiscal

1092

year.

1093

     3. "TBA(c)" is the total base allocation for the current

1094

month.

1095

     4. "TBA(i)" is the sum of total base allocations for all of

1096

the prior months in the current fiscal year.

1097

     Section 21.  Section 210.201, Florida Statutes, is amended

1098

to read:

1099

     210.201 Cancer facilities research facility at the

1100

University of South Florida; establishment; funding.--The Board

1101

of Directors of the H. Lee Moffitt Cancer Center and Research

1102

Institute shall construct, furnish, and equip, and shall covenant

1103

to complete, the cancer research facility at the University of

1104

South Florida adjacent to the H. Lee Moffitt Cancer Center and

1105

Research Institute. Moneys transferred to the Board of Directors

1106

of the H. Lee Moffitt Cancer Center and Research Institute

1107

pursuant to s. 210.20 shall be used to secure financing to pay or

1108

secure bonds or financial products issued or incurred in

1109

connection with the financing of costs related to constructing,

1110

furnishing, and equipping the cancer research, treatment, and

1111

related facilities facility. Such financing may include the

1112

issuance of tax-exempt bonds or other forms of indebtedness by a

1113

local authority, municipality, or county pursuant to parts II and

1114

III of chapter 159. Such bonds shall not constitute state bonds

1115

for purposes of s. 11, Art. VII of the State Constitution, but

1116

shall constitute bonds of a "local agency," as defined in s.

1117

159.27(4). The cigarette user fee tax dollars pledged to the

1118

facilities this facility pursuant to s. 210.20 may be replaced

1119

annually by the Legislature from tobacco litigation settlement

1120

proceeds.

1121

     Section 22.  Subsections (1), (2), (12), (13), (14), and

1122

(15) of section 215.5602, Florida Statutes, are amended to read:

1123

     215.5602  James and Esther King Biomedical Research

1124

Program.--

1125

     (1)  There is established within the Department of Health

1126

the James and Esther King Biomedical Research Program funded by

1127

the designated proceeds of s. 210.20(2)(c)5., as well as any

1128

prescribed portion of the Lawton Chiles Endowment Fund pursuant

1129

to s. 215.5601. The purpose of the James and Esther King

1130

Biomedical Research Program is to provide an annual and perpetual

1131

source of funding in order to support research initiatives that

1132

address the health care problems of Floridians in the areas of

1133

tobacco-related cancer, cardiovascular disease, stroke, and

1134

pulmonary disease. The long-term goals of the program are to:

1135

     (a)  Improve the health of Floridians by researching better

1136

prevention, diagnoses, treatments, and cures for cancer,

1137

cardiovascular disease, stroke, and pulmonary disease.

1138

     (b)  Expand the foundation of biomedical knowledge relating

1139

to the prevention, diagnosis, treatment, and cure of diseases

1140

related to tobacco use, including cancer, cardiovascular disease,

1141

stroke, and pulmonary disease.

1142

     (c)  Improve the quality of the state's academic health

1143

centers by bringing the advances of biomedical research into the

1144

training of physicians and other health care providers.

1145

     (d)  Increase the state's per capita funding for research by

1146

undertaking new initiatives in public health and biomedical

1147

research that will attract additional funding from outside the

1148

state.

1149

     (e)  Stimulate economic activity in the state in areas

1150

related to biomedical research, such as the research and

1151

production of pharmaceuticals, biotechnology, and medical

1152

devices.

1153

     (f) Expand the research capacity and infrastructure needed

1154

to conduct research on tobacco-related illnesses, with the

1155

provision of fixed capital outlay project funding as deemed

1156

appropriate by the Biomedical Research Advisory Council within

1157

the program's annual appropriation and with up to 25 percent of

1158

the program's annual funding allocation applied for this purpose

1159

by the council.

1160

     (2)  Funds appropriated for the James and Esther King

1161

Biomedical Research Program shall be used exclusively for the

1162

award of grants and fellowships as established in this section;

1163

for research relating to the prevention, diagnosis, treatment,

1164

and cure of diseases related to tobacco use, including cancer,

1165

cardiovascular disease, stroke, and pulmonary disease; for

1166

expenditures related to the expansion of tobacco-related research

1167

capacity and infrastructure within the state, including the

1168

provision of capital outlay costs to achieve such purpose; and

1169

for expenses incurred in the administration of this section.

1170

Priority shall be granted to research designed to prevent or cure

1171

disease.

1172

     (12)  Beginning in fiscal year 2006-2007, the sum of $6

1173

million is appropriated annually from recurring funds in the

1174

General Revenue Fund to the Biomedical Research Trust Fund within

1175

the Department of Health for purposes of the James and Esther

1176

King Biomedical Research Program pursuant to this section. From

1177

these funds up to $1 million $250,000 shall be available for the

1178

operating costs of the Florida Center for Universal Research to

1179

Eradicate Disease.

1180

     (13)  By June 1, 2009, the Division of Statutory Revision of

1181

the Office of Legislative Services shall certify to the President

1182

of the Senate and the Speaker of the House of Representatives the

1183

language and statutory citation of this section, which is

1184

scheduled to expire January 1, 2015 2011.

1185

     (14)  The Legislature shall review the performance, the

1186

outcomes, and the financial management of the James and Esther

1187

King Biomedical Research Program during the 2014 2010 Regular

1188

Session of the Legislature and shall determine the most

1189

appropriate funding source and means of funding the program based

1190

on its review.

1191

     (15) This section expires January 1, 2015 2011, unless

1192

reviewed and reenacted by the Legislature before that date.

1193

     Section 23.  Subsections (1) and (2) of section 381.922,

1194

Florida Statutes, are amended, present subsections (6), (7), and

1195

(8) of that section are amended and redesignated as subsections

1196

(7), (8), and (9), respectively, and a new subsection (6) is

1197

added to that section, to read:

1198

     381.922  William G. "Bill" Bankhead, Jr., and David Coley

1199

Cancer Research Program.--

1200

     (1)  The William G. "Bill" Bankhead, Jr., and David Coley

1201

Cancer Research Program, which may be otherwise cited as the

1202

"Bankhead-Coley Program," is created within the Department of

1203

Health. The purpose of the program shall be to advance progress

1204

towards cures for cancer through grants awarded through a peer-

1205

reviewed, competitive process, and to expand cancer research and

1206

treatment capacity in the state.

1207

     (2)  The program shall provide grants for cancer research to

1208

further the search for cures for cancer, for the recruitment of

1209

cancer researchers and research teams to institutions within the

1210

state, for operational start-up grants for newly recruited cancer

1211

researchers and research teams, and for fixed capital outlay

1212

expenditures related to the expansion of cancer research and

1213

treatment capacity in Florida, with up to 25 percent of the

1214

program's annual allocation applied to these purposes.

1215

     (a)  Emphasis shall be given to the goals enumerated in s.

1216

381.921, as those goals support the advancement of such cures.

1217

     (b)  Preference may be given to grant proposals that foster

1218

collaborations among institutions, researchers, and community

1219

practitioners, as such proposals support the advancement of cures

1220

through basic or applied research, including clinical trials

1221

involving cancer patients and related networks.

1222

     (6) Beginning in the 2008-2009 fiscal year, and every year

1223

thereafter, designated proceeds generated by s. 210.20(2)(c)5.

1224

shall be employed to enhance the purposes prescribed in this

1225

section.

1226

     (7)(6) By June 1, 2009, the Division of Statutory Revision

1227

of the Office of Legislative Services shall certify to the

1228

President of the Senate and the Speaker of the House of

1229

Representatives the language and statutory citation of this

1230

section, which is scheduled to expire January 1, 2015 2011.

1231

     (8)(7) The Legislature shall review the performance, the

1232

outcomes, and the financial management of the William G. "Bill"

1233

Bankhead, Jr., and David Coley Cancer Research Program during the

1234

2014 2010 Regular Session of the Legislature and shall determine

1235

the most appropriate funding source and means of funding the

1236

program based on its review.

1237

     (9)(8) This section expires January 1, 2015 2011, unless

1238

reviewed and reenacted by the Legislature before that date.

1239

     Section 24. By December 1, 2009, and before December 1 of

1240

each year thereafter, the Department of Health shall submit to

1241

the Governor, the President of the Senate, and the Speaker of the

1242

House of Representatives a report containing an estimate of the

1243

financial impact of tobacco use and related illnesses on the

1244

state's economy and its taxpayers for each of the prior 10 years,

1245

as well as an estimate of the value of cost savings associated

1246

with the expenditure of revenues generated by the cigarette user

1247

fee imposed by s. 210.02, Florida Statutes, during the same

1248

period.

1249

     Section 25.  This act shall take effect July 1, 2008.

1250

1251

================ T I T L E  A M E N D M E N T ================

1252

And the title is amended as follows:

1253

     Delete everything before the enacting clause

1254

and insert:

1255

A bill to be entitled

1256

An act relating to cigarette user fees; providing

1257

legislative findings; amending s. 210.01, F.S.; defining

1258

the terms "council," "total collections," and "net

1259

collections"; revising the definitions of "exporter,"

1260

"unstamped package," "stamp" or "stamps," and "counterfeit

1261

cigarettes"; amending s. 210.02, F.S.; replacing all

1262

references to the term tax with user fee; increasing the

1263

amount of the cigarette user fee; amending ss. 210.021,

1264

210.03, 210.04, 210.05, 210.06, 210.07, 210.08, 210.09,

1265

210.11, 210.12, 210.13, 210.14, 210.15, 210.18, 210.181,

1266

210.185, and 210.19,F.S.; conforming provisions to changes

1267

made by the act; amending s. 210.20, F.S.; providing

1268

definitions; requiring the Division of Alcoholic Beverages

1269

and Tobacco to certify to the Chief Financial Officer the

1270

amount of net collections derived from the user fee on a

1271

monthly basis; requiring the division to credit a specific

1272

percent of the total base allocation to certain trust

1273

funds, the H. Lee Moffitt Cancer Center and Research

1274

Institute's Board of Directors, the William G. "Bill"

1275

Bankhead, Jr., and David Coley Cancer Research Program,

1276

and certain medical residency and fellowship programs;

1277

providing legislative intent to use the cigarette user fee

1278

collections to increase enrollment in the Florida Kidcare

1279

program; requiring that the amounts credited or

1280

transferred from the Cigarette Tax Collection Trust Fund

1281

be adjusted in proportion to the corresponding reference

1282

year allocation; providing a formula for calculating the

1283

maximum total supplemental allocation; amending s.

1284

210.201, F.S.; requiring the Board of Directors of the H.

1285

Lee Moffitt Cancer Center and Research Institute to use

1286

funds to secure bonds or financial products for cancer

1287

facilities; amending s. 215.5602, F.S.; requiring the

1288

James and Esther King Biomedical Research Program to

1289

appropriate a certain percent of the program's annual

1290

funding to expand research conducted on tobacco-related

1291

illnesses; increasing the amount of funds allocated to the

1292

Florida Center for Universal Research to Eradicate

1293

Disease; extending certain expiration dates; amending s.

1294

381.922, F.S.; revising the purpose of the William G.

1295

"Bill" Bankhead, Jr., and David Coley Cancer Research

1296

Program to expand cancer research and treatment; requiring

1297

the program to provide grants for the recruitment of

1298

cancer researchers and institutions, operational start-up

1299

grants for newly recruited researchers, and for fixed

1300

capital outlay; requiring that certain proceeds be used

1301

for certain purposes; extending certain expiration dates;

1302

requiring the Department of Health to submit a report to

1303

the Governor and the Legislature by a certain date which

1304

contains an estimate of the financial impact of tobacco

1305

use and related illnesses on the economy and taxpayers;

1306

providing an effective date.

4/14/2008  10:14:00 AM     587-07418-08