Florida Senate - 2008 SB 2790
By Senator Deutch
30-03441C-08 20082790__
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A bill to be entitled
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An act relating to cigarette user fees; providing
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legislative findings; amending s. 210.01, F.S.; defining
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the terms "council," "total collections," and "net
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collections"; revising the definitions of "exporter,"
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"unstamped package," "stamp" or "stamps," and "counterfeit
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cigarettes"; amending s. 210.02, F.S.; replacing all
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references to the term tax with user fee; increasing the
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amount of the cigarette user fee; amending ss. 210.021,
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made by the act; amending s. 210.20, F.S.; providing
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definitions; requiring the Division of Alcoholic Beverages
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and Tobacco to certify to the Chief Financial Officer the
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amount of net collections derived from the user fee on a
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monthly basis; requiring the division to credit a specific
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percent of the total base allocation to certain trust
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funds, the H. Lee Moffitt Cancer Center and Research
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Institute's Board of Directors, the William G. "Bill"
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Bankhead, Jr., and David Coley Cancer Research Program,
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and certain medical residency and fellowship programs;
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providing legislative intent to use the cigarette user fee
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collections to increase enrollment in the Florida Kidcare
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program; requiring that the amounts credited or
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transferred from the Cigarette Tax Collection Trust Fund
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be adjusted in proportion to the corresponding reference
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year allocation; providing a formula for calculating the
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maximum total supplemental allocation; amending s.
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210.201, F.S.; requiring the Board of Directors of the H.
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Lee Moffitt Cancer Center and Research Institute to use
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funds to secure bonds or financial products for cancer
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facilities; amending s. 215.5602, F.S.; requiring the
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James and Esther King Biomedical Research Program to
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appropriate a certain percent of the program's annual
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funding to expand research conducted on tobacco-related
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illnesses; increasing the amount of funds allocated to the
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Florida Center for Universal Research to Eradicate
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Disease; extending certain expiration dates; amending s.
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381.922, F.S.; revising the purpose of the William G.
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"Bill" Bankhead, Jr., and David Coley Cancer Research
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Program to expand cancer research and treatment; requiring
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the program to provide grants for the recruitment of
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cancer researchers and institutions, operational start-up
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grants for newly recruited researchers, and for fixed
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capital outlay; requiring that certain proceeds be used
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for certain purposes; extending certain expiration dates;
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amending s. 395.701, F.S.; defining the term "relative
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share"; providing that a hospital's relative share
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credited or transferred from the Cigarette Tax Collections
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Trust Fund to the Public Medical Assistance Trust Fund are
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not included in the annual assessment on net operating
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revenues for inpatient and outpatient services; repealing
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s. 395.7015, F.S; relating to the annual assessment on
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health care entities; requiring the Department of Health
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to submit a report to the Governor and the Legislature by
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a certain date which contains an estimate of the financial
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impact of tobacco use and related illnesses on the economy
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and taxpayers; providing an effective date.
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Be It Enacted by the Legislature of the State of Florida:
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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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(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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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
441
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
444
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
447
business of any such retail dealer, or in the possession of any
448
other person without the stamps affixed, the presumption shall be
449
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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person, other than a dealer or distributing agent that receives
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unstamped cigarette packages directly from a cigarette
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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
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stamps, only such part of the dealer's stock that is identified
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for sale or distribution outside this state. If a dealer
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maintains stocks of unstamped cigarette packages, such unstamped
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packages shall be stored separately from stamped product
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packages. No unstamped cigarette packages shall be transferred by
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a dealer to another facility of the dealer within this state or
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to another person within this state.
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Section 9. Section 210.07, Florida Statutes, is amended to
471
read:
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210.07 Metering machines.--
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(1)(a) The user fee tax may also be paid through the use of
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cigarette user fee tax stamp insignia to be applied by the use of
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metering machines. The division shall prescribe and promulgate
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appropriate rules and regulations governing the use of metering
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machines, the procedure for the payment of such cigarette user
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fees taxes through the use thereof, requiring adequate surety
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bonds of the users thereof to assure the proper use of such
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machines and payment of all cigarette user fees taxes that might
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come due by the users thereof, and all other rules and
482
regulations necessary and proper to govern the use of same.
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(b) The provisions of s. 210.05(3)(a) and (b) shall be
484
applicable to cigarette user fees taxes paid through the use of
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metering machines.
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(2) All provisions of this part governing the use of
487
cigarette user fee tax stamps, the compiling of records, the
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making of reports, permits and revocation of permits, seizures
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and forfeitures, penalties, and all other provisions pertaining
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to the payment of cigarette user fees taxes through the use of
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stamps, shall likewise be applicable to the payment of said user
492
fees taxes through the use of metering machines.
493
(3) Wholesale or retail dealers of cigarettes owning,
494
leasing, furnishing, or operating cigarette vending machines
495
shall affix to each such machine, in a conspicuous place, an
496
identification sticker furnished by the division. Every sticker
497
shall show the vending machine serial number and the name and
498
address of the cigarette wholesale or retail dealer owning,
499
leasing, furnishing, or operating said vending machine.
500
(4) No vending machine shall be allowed to operate in the
501
state that does not have affixed thereto the identification
502
sticker required by this section nor shall any vending machine be
503
allowed to operate in the state that does not display at all
504
times at least one package of each brand of the packages located
505
therein so the same are clearly visible and arranged in such a
506
manner that the cigarette user fee tax stamps or meter
507
impressions of stamps affixed thereto are clearly visible. It
508
shall be the duty of any person, firm or corporation operating a
509
cigarette vending machine in this state to furnish the division
510
the location of the vending machine and to report within 30 days
511
to the division any change of location of the vending machine.
512
Section 10. Section 210.08, Florida Statutes, is amended to
513
read:
514
210.08 Bond for payment of user fees taxes.--Each dealer,
515
agent, or distributing agent shall file with the division a
516
surety bond, certificate of deposit, or irrevocable letter of
517
credit acceptable to the division in an amount equal to 110
518
percent of the estimated user fee tax liability for 30 days, but
519
not less than $2,000.
520
Section 11. Subsections (2) and (3) of section 210.09,
521
Florida Statutes, are amended to read:
522
210.09 Records to be kept; reports to be made;
523
examination.--
524
(2) The division is authorized to prescribe and promulgate
525
by rules and regulations, which shall have the force and effect
526
of the law, such records to be kept and reports to be made to the
527
division by any manufacturer, importer, distributing agent,
528
wholesale dealer, retail dealer, common carrier, or any other
529
person handling, transporting or possessing cigarettes for sale
530
or distribution within the state as may be necessary to collect
531
and properly distribute the user fees taxes imposed by s. 210.02.
532
All reports shall be made on or before the 10th day of the month
533
following the month for which the report is made, unless the
534
division by rule or regulation shall prescribe that reports be
535
made more often.
536
(3) All manufacturers, importers, distributing agents,
537
wholesale dealers, agents, or retail dealers shall maintain and
538
keep for a period of 3 years at the place of business where any
539
transaction takes place, such records of cigarettes received,
540
sold, or delivered within the state as may be required by the
541
division. The division or its duly authorized representative is
542
hereby authorized to examine the books, papers, invoices, and
543
other records, the stock of cigarettes in and upon any premises
544
where the same are placed, stored, and sold, and the equipment of
545
any such manufacturers, importers, distributing agents, wholesale
546
dealers, agents, or retail dealers, pertaining to the sale and
547
delivery of cigarettes assessable taxable under this part. To
548
verify the accuracy of the user fee tax imposed and assessed by
549
this part, each person is hereby directed and required to give to
550
the division or its duly authorized representatives the means,
551
facilities, and opportunity for such examinations as are herein
552
provided for and required.
553
Section 12. Section 210.11, Florida Statutes, is amended to
554
read:
555
210.11 Refunds; sales of stamps and payment of user fee
556
tax.--Whenever any cigarettes upon which stamps have been placed,
557
or upon which the user fee tax has been paid by metering machine,
558
have been sold and shipped into another state for sale or use
559
therein, or have become unfit for use and consumption or
560
unsalable, or have been destroyed, the dealer involved shall be
561
entitled to a refund or credit of the actual amount of the user
562
fee tax paid with respect to such cigarettes less any discount
563
allowed by the division in the sale of the stamps or payment of
564
the user fee tax by metering machine, upon receipt of
565
satisfactory evidence of the dealer's right to receive such
566
refund or credit, provided application for refund or credit is
567
made within 9 months of the date the cigarettes were shipped out
568
of the state, became unfit, or were destroyed. Only the division
569
shall sell, or offer for sale, any stamp or stamps issued under
570
this part. The division may redeem unused stamps lawfully in the
571
possession of any person. The division may prescribe necessary
572
rules and regulations concerning refunds, credits, sales of
573
stamps, and redemptions under the provisions of this part.
574
Appropriation is hereby made out of revenues collected under this
575
part for payment of such allowances.
576
Section 13. Section 210.13, Florida Statutes, is amended to
577
read:
578
210.13 Determination of user fee tax on failure to file a
579
return.--If a dealer fails to file any return required under this
580
part, or having filed an incorrect or insufficient return, fails
581
to file a correct or sufficient return, as the case may require,
582
within 10 days after the giving of notice to the dealer by the
583
Division of Alcoholic Beverages and Tobacco that such return or
584
corrected or sufficient return is required, the division shall
585
determine the amount of user fee tax due by such dealer any time
586
within 3 years after the making of the earliest sale included in
587
such determination and give written notice of such determination
588
to such dealer. Such a determination shall finally and
589
irrevocably fix the user fee tax unless the dealer against whom
590
it is assessed shall, within 30 days after the giving of notice
591
of such determination, apply to the division for a hearing.
592
Judicial review shall not be granted unless the amount of the
593
user fee tax stated in the decision, with penalties thereon, if
594
any, shall have been first deposited with the division, and an
595
undertaking or bond filed in the court in which such cause may be
596
pending in such amount and with such sureties as the court shall
597
approve, conditioned that if such proceeding be dismissed or the
598
decision of the division confirmed, the applicant for review will
599
pay all costs and charges which may accrue against the applicant
600
in the prosecution of the proceeding. At the option of the
601
applicant, such undertaking or bond may be in an additional sum
602
sufficient to cover the user fees tax, penalties, costs, and
603
charges aforesaid, in which event the applicant shall not be
604
required to pay such user fees tax and penalties precedent to the
605
granting of such review by such court.
606
Section 14. Section 210.14, Florida Statutes, is amended to
607
read:
608
210.14 Warrant for collection of user fees taxes.--
609
(1) In addition to all other remedies for the collection of
610
any user fees taxes due under the provisions of this part, the
611
division may issue a warrant under its official seal, which
612
warrant may be filed by the division in the office of the clerk
613
of the circuit court of any county where the delinquent person
614
taxpayer owns property. Upon presentation of the warrant, the
615
clerk of the circuit court shall enter it in the judgment docket.
616
The name of the person mentioned in the warrant, the amount of
617
the user fee tax and penalties for which the warrant was issued,
618
and the date such copy was filed shall be included in the record
619
of the warrant. The clerk shall be allowed the same fees as are
620
allowed by law for similar services rendered in judgment
621
execution proceedings. The warrant issued by the division may
622
then be directed to the sheriff of any county commanding that
623
sheriff to levy upon and sell the goods and chattels of the
624
specified delinquent person found within the sheriff's
625
jurisdiction, for the payment of the amount of such delinquency
626
plus a penalty equal to 50 percent of the amount thereof, and
627
interest on the total at 1 percent per month and the cost of
628
executing the warrant, and to return such warrant to the division
629
and to pay it the money collected by virtue thereof within 60
630
days after receipt of such warrant.
631
(2) The amount of the warrant docketed pursuant to
632
subsection (1) shall become a lien upon the title to or the
633
interest in real or personal property of the person against whom
634
the warrant is issued. The sheriff to whom any such warrant is
635
directed shall proceed upon the warrant in all respects and with
636
like effect and in the same manner as prescribed by law in
637
respect to executions issued against goods and chattels upon
638
judgments by a court of record, and the sheriff shall be entitled
639
to the same fees for his or her services in executing the warrant
640
to be collected in the same manner.
641
(3) In the discretion of the division, a warrant of like
642
terms, force, and effect may be issued and directed to any
643
officer or employee of the division; and in the execution thereof
644
such officer or employee shall have all the power conferred by
645
law upon sheriffs, but shall be entitled to no fee or
646
compensation in excess of the actual expenses paid in the
647
performance of such duty. If a warrant is returned not satisfied
648
in full, the division may from time to time issue new warrants
649
and shall also have the same remedies to enforce the amount due
650
thereunder as if the state had recovered judgment therefor and
651
execution thereon had been returned satisfied.
652
Section 15. Paragraphs (c) and (h) of subsection (1), and
653
subsection (2) of section 210.15, Florida Statutes, are amended
654
to read:
655
210.15 Permits.--
656
(1)
657
(c) No permit under this part or chapter 569 shall be
658
issued, maintained, or renewed if the applicant, its officers, or
659
any person or persons owning directly or indirectly, in the
660
aggregate, more than 10 percent of the ownership interests in the
661
applicant:
662
1. Has been finally adjudicated as owing $500 or more in
663
delinquent cigarette user fees taxes;
664
2. Had a permit revoked by the division within the previous
665
2 years;
666
3. Has been convicted of selling stolen or counterfeit
667
cigarettes, receiving stolen cigarettes, or being involved in the
668
counterfeiting of cigarettes;
669
4. Has been convicted within the past 5 years of any
670
offense against the cigarette laws of this state or convicted in
671
this state, any other state, or the United States during the past
672
5 years of any offense designated as a felony by such state or
673
the United States, or to a corporation, any of whose officers
674
have been so convicted. The term "convicted" shall include an
675
adjudication of guilt on a plea of guilty or a plea of nolo
676
contendere, or the forfeiture of a bond when charged with a
677
crime;
678
5. Has imported, or caused to be imported, into the United
679
States any cigarette in violation of 19 U.S.C. s. 1681a; or
680
6. Has imported, or caused to be imported, into the United
681
States, or manufactured for sale or distribution in the United
682
States, any cigarette that does not fully comply with the Federal
683
Cigarette Labeling and Advertising Act (15 U.S.C. ss. 1331 et
684
seq.).
685
(h) No retail sales of cigarettes may be made at a location
686
for which a wholesale dealer, distributing agent, or exporter
687
permit has been issued. The user fee excise tax on sales made to
688
any traveling location, such as an itinerant store or industrial
689
caterer, shall be paid into the General Revenue Fund unallocated.
690
Cigarettes may be purchased for retail purposes only from a
691
person holding a wholesale dealer permit. The invoice for the
692
purchase of cigarettes must show the place of business for which
693
the purchase is made and the cigarettes cannot be transferred to
694
any other place of business for the purpose of resale.
695
(2) The division may not furnish stamps or approve the use
696
of meter machines to evidence the payment of the user fees taxes
697
on cigarettes except to qualified wholesale dealers.
698
Section 16. Section 210.18, Florida Statutes, is amended to
699
read:
700
210.18 Penalties for user fee tax evasion; reports by
701
sheriffs.--
702
(1) Any person who possesses or transports any unstamped
703
packages of cigarettes upon the public highways, roads, or
704
streets in the state for the purpose of sale; or who sells or
705
offers for sale unstamped packages of cigarettes in violation of
706
the provisions of this part; or who willfully attempts in any
707
manner to evade or defeat any user fee tax imposed by this part,
708
or the payment thereof, is guilty of a misdemeanor of the first
710
person who has been convicted of a violation of any provision of
711
the cigarette user fee tax law and who is thereafter convicted of
712
a further violation of the cigarette user fee tax law is, upon
713
conviction of such further offense, guilty of a felony of the
715
or s. 775.084.
716
(2) Except as otherwise provided in this section, any
717
person who fails, neglects, or refuses to comply with, or
718
violates the provisions of, this part or the rules adopted by the
719
division under this part commits a misdemeanor of the first
721
person who has been convicted of a violation of any provision of
722
the cigarette user fee tax law and who is thereafter convicted of
723
a further violation of the cigarette user fee tax law is, upon
724
conviction of such further offense, guilty of a felony of the
726
or s. 775.084.
727
(3) Any person who falsely or fraudulently makes, forges,
728
alters, or counterfeits any stamp or impression die used in meter
729
machines prescribed by the division under the provisions of this
730
part; or, with intent to evade user fees taxes, jams, tampers
731
with, or alters such a machine; or causes or procures to be
732
falsely or fraudulently made, forged, altered, or counterfeited
733
any such stamp or die; or knowingly and willfully utters,
734
purchases, passes or tenders as true any such false, altered, or
735
counterfeited stamp or die impression; or, with the intent to
736
defraud the state, fails to comply with any other requirement of
737
this part commits a felony of the third degree, punishable as
739
(4)(a) Any person or corporation that owns or is in
740
possession of any cigarettes upon which a user fee tax is imposed
741
by the cigarette law, or would be imposed if such cigarettes were
742
manufactured in or brought into this state in accordance with the
743
regulatory provisions of the cigarette law, and upon which such
744
user fee tax has not been paid is, in addition to the fines and
745
penalties otherwise provided in the cigarette law, personally
746
liable for the amount of the user fee tax imposed on such
747
cigarettes; and the division may collect such user fee tax from
748
such person or corporation by suit or by restitution if the
749
person taxpayer is convicted, found guilty, or pleads nolo
750
contendere or guilty to any crime under this chapter. This
751
paragraph is applicable even if adjudication is withheld.
752
(b) This subsection does not apply to a manufacturer or
753
distributor licensed under the cigarette law, to a state bonded
754
warehouse, or to a person possessing not in excess of three
755
cartons of such cigarettes, which cigarettes were purchased by
756
such possessor outside the state in accordance with the laws of
757
the place where purchased and brought into this state by such
758
possessor. The burden of proof that such cigarettes were
759
purchased outside the state and in accordance with the laws of
760
the place where purchased shall in all cases be upon the
761
possessor of such cigarettes.
762
(5)(a) All cigarettes on which user fees taxes are imposed
763
by the cigarette law, or would be imposed if such cigarettes were
764
manufactured in or brought into this state in accordance with the
765
regulatory provisions of such law, which are found in the
766
possession or custody or within the control of any person for the
767
purpose of being sold or removed by him or her in fraud of the
768
cigarette law or with design to evade payment of such user fees
769
taxes may be seized by the division or any supervisor, sheriff,
770
deputy sheriff, or other law enforcement agent and shall be
771
forfeited to the state.
772
(b) This subsection does not apply to a person possessing
773
not in excess of three cartons of cigarettes, which cigarettes
774
were purchased by such possessor outside the state in accordance
775
with the laws of the place where purchased and brought into this
776
state by such possessor.
777
(6)(a) Every person, firm, or corporation, other than a
778
licensee under the provisions of this part, who possesses,
779
removes, deposits, or conceals, or aids in the possessing,
780
removing, depositing, or concealing of, any unstamped cigarettes
781
not in excess of 50 cartons is guilty of a misdemeanor of the
782
second degree, punishable as provided in s. 775.082 or s.
783
775.083. In lieu of the penalties provided in those sections,
784
however, the person, firm, or corporation may pay the user fee
785
tax plus a penalty equal to the amount of the user fee tax
786
authorized under s. 210.02 on the unstamped cigarettes.
787
(b) Every person, firm, or corporation, other than a
788
licensee under the provisions of this part, who possesses,
789
removes, deposits, or conceals, or aids in the possessing,
790
removing, depositing, or concealing of, any unstamped cigarettes
791
in excess of 50 cartons is presumed to have knowledge that they
792
have not been assessed the user fee taxed and is guilty of a
793
felony of the third degree, punishable as provided in s. 775.082,
795
(c) This section does not apply to a person possessing not
796
in excess of three cartons of such cigarettes purchased by such
797
possessor outside the state in accordance with the laws of the
798
place where purchased and brought into this state by such
799
possessor. The burden of proof that such cigarettes were
800
purchased outside the state and in accordance with the laws of
801
the place where purchased shall in all cases be upon the
802
possessor of such cigarettes.
803
(7) Any sheriff, deputy sheriff, police officer, or state
804
law enforcement officer, upon the seizure of any unstamped
805
cigarettes under this section, shall promptly report such seizure
806
to the division or its representative, together with a
807
description of all such unstamped cigarettes seized, so that the
808
state may be kept informed as to the size and magnitude of the
809
illicit cigarette business. The division shall keep records
810
showing the number of seizures and seized cigarettes reported to,
811
or seized by, the division.
812
(8)(a) It is unlawful for any person to conspire with any
813
other person or persons to do any act in violation of the
814
provisions of this part, when any one or more of such persons
815
does or commits any act to effect the object of the conspiracy.
816
(b) Any person who violates the provisions of this
817
subsection:
818
1. If the act conspired to be done would constitute a
819
misdemeanor, is guilty of a misdemeanor of the second degree,
821
2. If the act conspired to be done would constitute a
822
felony, is guilty of a felony of the third degree, punishable as
824
(9) Notwithstanding any other provision of law, the sale or
825
possession for sale of counterfeit cigarettes by any person or by
826
a manufacturer, importer, distributing agent, wholesale dealer,
827
or retail dealer shall result in the seizure of the product and
828
related machinery by the division or any law enforcement agency.
829
(10) It is unlawful to sell or possess with the intent to
830
sell counterfeit cigarettes, as defined in s. 210.01(22).
831
(a) A person who does not hold a permit or holds a retail
832
permit under the provisions of this chapter and who violates this
833
subsection commits a felony of the third degree, punishable as
835
to the imposition of fines and additional penalties as follows:
836
1. If the quantity of counterfeit cigarettes sold or
837
possessed with the intent to sell is less than two cartons or the
838
equivalent, the fine for a first violation shall not exceed
839
$1,000 or five times the retail value of the counterfeit
840
cigarettes, whichever is greater. A subsequent violation may
841
result in the imposition of a fine not to exceed $5,000 or five
842
times the retail value of the counterfeit cigarettes, whichever
843
is greater, and shall result in revocation of the retail permit
844
by the division.
845
2. If the quantity of counterfeit cigarettes sold or
846
possessed with the intent to sell is two cartons or more or the
847
equivalent, the fine for a first violation shall not exceed
848
$2,000 or five times the retail value of the counterfeit
849
cigarettes, whichever is greater. A subsequent violation may
850
result in the imposition of a fine not to exceed $50,000 or five
851
times the retail value of the counterfeit cigarettes, whichever
852
is greater, and shall result in revocation of the retail permit
853
by the division.
854
(b) A person who holds a permit, other than a retail
855
permit, under the provisions of this chapter and who violates
856
this subsection commits a felony of the third degree, punishable
858
subject to the imposition of fines and additional penalties as
859
follows:
860
1. If the quantity of counterfeit cigarettes sold or
861
possessed with the intent to sell is less than 10 cartons or the
862
equivalent, the fine for a first violation shall not exceed
863
$1,000 or five times the retail value of the counterfeit
864
cigarettes, whichever is greater. A subsequent violation may
865
result in the imposition of a fine not to exceed $5,000 or five
866
times the retail value of the counterfeit cigarettes, whichever
867
is greater, and shall result in revocation of the permit by the
868
division.
869
2. If the quantity of counterfeit cigarettes sold or
870
possessed with the intent to sell is 10 cartons or more or the
871
equivalent, the fine for a first violation shall not exceed
872
$2,000 or five times the retail value of the counterfeit
873
cigarettes, whichever is greater. A subsequent violation may
874
result in the imposition of a fine not to exceed $50,000 or five
875
times the retail value of the counterfeit cigarettes, whichever
876
is greater, and shall result in revocation of the permit by the
877
division.
878
879
For purposes of this subsection, any counterfeit cigarettes
880
seized by the division shall be destroyed.
881
Section 17. Subsection (2) of section 210.181, Florida
882
Statutes, is amended to read:
883
210.181 Civil penalties.--
884
(2) Whoever fails to pay any user fee tax imposed by this
885
part at the time prescribed by law or rules shall, in addition to
886
any other penalty provided in this part, be liable for a penalty
887
of five times the unpaid user fees tax due.
888
Section 18. Subsection (2) and paragraph (c) of subsection
889
(6) of section 210.185, Florida Statutes, are amended to read:
890
210.185 Prohibition on sale or distribution of cigarettes;
891
criminal penalties; administrative sanctions; applicability.--
892
(2) DOCUMENTATION.--On or before the 10th day of each
893
month, each person permitted to affix the user fee tax stamp to
894
cigarettes shall file with the division, for all cigarettes
895
imported into the United States to which the person has affixed
896
the user fee tax stamp in the preceding month, a copy of the
897
permit issued under the Internal Revenue Code, 26 U.S.C. s. 5713,
898
to the person importing the cigarettes into the United States
899
which allows that person to import those cigarettes; a copy of
900
the customs form containing, with respect to the cigarettes, the
901
internal revenue tax information required by the United States
902
Bureau of Alcohol, Tobacco and Firearms; and a statement, signed
903
by an officer of the manufacturer or importer under penalty of
904
perjury, certifying that the manufacturer or importer has
905
complied with the package health warning and ingredient reporting
906
requirements of the Federal Cigarette Labeling and Advertising
907
Act, 15 U.S.C. ss. 1333 and 1335a, with respect to those
908
cigarettes.
909
(6) GENERAL PROVISIONS.--
910
(c) In addition to any other remedy provided by law,
911
including enforcement as provided in paragraph (a), any person
912
may bring an action for appropriate injunctive or other equitable
913
relief for a violation of this section; for actual damages, if
914
any, sustained by reason of the violation; and, as determined by
915
the court, for interest on the damages from the date of the
916
complaint, assessable taxable costs, and reasonable attorney's
917
fees. If the trier of fact finds that the violation is flagrant,
918
it may increase recovery to an amount not in excess of 3 times
919
the actual damages sustained by reason of the violation.
920
Section 19. Section 210.19, Florida Statutes, is amended to
921
read:
922
210.19 Records to be kept by division.--The division shall
923
keep records showing the total amount of user fees taxes
924
collected, which records shall be open to the public during the
925
regular office hours of the division. The division shall maintain
926
records that identify which agent or wholesale dealer affixed the
927
user fee tax stamp to each package of cigarettes. The identifying
928
records must be made available for public inspection and retained
929
for at least 3 years.
930
Section 20. Subsection (2) of section 210.20, Florida
931
Statutes, is amended to read:
932
210.20 Employees and assistants; distribution of funds.--
933
(2)(a) For purposes of this subsection, the term:
934
1. "Agency" means the Agency for Health Care
935
Administration.
936
2. "Cigarette user fee" means the user fee imposed by s.
937
938
3. "Council" means the Biomedical Research Advisory Council
939
within the Department of Health as established in s. 215.5602.
940
4. "Reference year" means July 1, 2007, to June 30, 2008.
941
5. "Total collections" means the total amount derived from
942
the cigarette user fee during a specified period of time.
943
6. "Net collections" means 99.1 percent of the total
944
collections less the service charges provided for in s. 215.20.
945
7. "Reference year allocation" means the total amount
946
credited or transferred from the Cigarette Tax Collection Trust
947
Fund to a particular trust fund or the General Revenue Fund
948
during the reference year divided by 12.
949
8. "Total base allocation" means, for a given month, 8.333
950
percent of the average of the projected net collections for the
951
fiscal year containing such month, based on the most recent
952
estimates generated by a Revenue Estimating Conference convened
953
pursuant to s. 216.136(3), or net collections for such month,
954
whichever is less.
955
(b) As collections are received by the division from the
956
user fee on cigarettes such cigarette taxes, it shall pay the
957
same into a trust fund in the State Treasury designated
958
"Cigarette Tax Collection Trust Fund." which shall be paid and
959
distributed as follows:
960
(c)(a) The division shall from month to month certify to
961
the Chief Financial Officer the amount of net collections derived
962
from the cigarette user fee tax imposed by s. 210.02, less the
963
service charges provided for in s. 215.20 and less 0.9 percent of
964
the amount derived from the cigarette tax imposed by s. 210.02,
965
which shall be deposited into the Alcoholic Beverage and Tobacco
966
Trust Fund, specifying the amounts to be transferred from the
967
Cigarette Tax Collection Trust Fund and credited on the following
968
bases; however, the division shall first deposit monthly into the
969
Alcoholic Beverage and Tobacco Trust Fund an amount equal to the
970
sum of 0.9 percent of total collections and the service charge on
971
total collection provided for in s. 215.20 as follows:
972
1. The sum of 0.8218 percent basis of 2.9 percent of the
973
total base allocation net collections to the Revenue Sharing
974
Trust Fund for Counties for distribution pursuant to the Florida
975
Revenue Sharing Act.
976
2. The sum of 8.4551 percent and 29.3 percent of the total
977
base allocation to the Public Medical Assistance Trust Fund net
978
collections for the funding of indigent health care pursuant to
979
s. 409.918 to the Public Medical Assistance Trust Fund.
980
3. The sum of 20.1247 percent of the total base allocation
981
in fiscal year 2008-2009 to the Public Medical Assistance Trust
982
Fund to offset the assessment levied on the annual net operating
983
revenue for inpatient and outpatient services provided by
984
hospitals pursuant to s. 395.701, as such assessment existed on
985
January 1, 2008. In subsequent fiscal years, an equivalent amount
986
shall be transferred to the Public Medical Assistance Trust for
987
such purpose, regardless of the amount of net collections.
988
4. The sum of 1.5 percent of the total base allocation to
989
the H. Lee Moffitt Cancer Center and Research Institute
990
established in s. 1004.43, which shall be paid on a monthly basis
991
to the center's Board of Directors by warrant drawn by the Chief
992
Financial Officer upon the State Treasury. The revenues derived
993
from this allocation are separate and distinct from any funds
994
allocated to the H. Lee Moffitt Cancer Center through the James
995
and Esther King Biomedical Research Program or the Bankhead-Coley
996
Cancer Research Program. Funds derived pursuant this subparagraph
997
are to be used for the purpose of constructing, furnishing, and
998
equipping cancer research, treatment, and related facilities. The
999
appropriation to the H. Lee Moffitt Cancer Center and Research
1000
Institute authorized by this subparagraph shall not be less than
1001
the amount that would have been paid to the H. Lee Moffitt and
1002
Cancer Research Institute for fiscal year 2006-2007 had this
1003
subparagraph been in effect.
1004
5. The sum of 5.9179 percent of the total base allocation
1005
to the Biomedical Research Trust Fund for distribution by the
1006
Biomedical Research Advisory Council to grantees of the James and
1007
Esther King Biomedical Research Program authorized pursuant to s.
1008
215.5602 and the Bankhead-Coley Cancer Research Program
1009
authorized pursuant to s. 381.922, with such programs dividing
1010
equally the allocation derived from this subparagraph. The
1012
methods of distribution under the respective programs.
1013
6. The sum of 18.5013 percent of the total base allocation
1014
to the Medical Care Trust Fund for the funding of the Medically
1015
Needy program established pursuant to 42 U.S.C. ss. 1396(a) and
1016
(d) and 409.904(2).
1017
7. The sum of 18.5013 percent of the total base allocation
1018
to the Medical Care Trust Fund for the funding of annual
1019
adjustments to fee reimbursements made to physicians for services
1020
provided under the Medicaid program so that Medicaid
1021
reimbursement rates are made to equal the Medicare reimbursement
1022
rates as such rates existed on January 1, 2008.
1023
8. The sum of 4.5194 percent of the total base allocation
1024
to the Medical Care Trust Fund for the funding of children's
1025
health care coverage through the Florida Kidcare program
1027
Legislature to use cigarette user fee collections to increase
1028
enrollment of previously uninsured children in the Florida
1029
Kidcare program and minimize disruption of such coverage for
1030
children at risk for involuntary or premature disenrollment from
1031
the program. Therefore, for the purposes of this subparagraph,
1032
such credits shall be made each month to the Medical Care Trust
1033
Fund as follows:
1034
a. A percentage of the total base allocation shall first be
1035
credited to fund efforts to ensure appropriate retention of
1036
coverage by, and prevention of, the involuntary or premature
1037
disenrollment from coverage for children enrolled in the Florida
1038
Kidcare program during any month in which such children are not
1039
subject to disenrollment under the laws and policies in effect,
1040
but would have been subject to disenrollment if the laws and
1041
policies governing the Florida Kidcare program in effect on June
1042
30, 2008, had remained in effect during such month. The
1043
percentage shall be determined by the agency for each fiscal year
1044
based on the estimated amount needed to fully fund such retention
1045
and prevention efforts, except that such percentage shall not
1046
exceed one-tenth of the allocation in this subparagraph and shall
1047
remain fixed throughout the fiscal year.
1048
b. A percentage of the total base allocation shall next be
1049
credited to fund the coverage of children who are enrolled in the
1050
Florida Kidcare program and covered under Title XXI of the Social
1051
Security Act during any month. The percentage shall be determined
1052
by the agency based on the estimated amount needed to fund
1053
coverage for a number of children equal to the number enrolled in
1054
the Florida Kidcare program and covered under Title XXI of the
1055
Social Security Act during such month, as certified to the Chief
1056
Financial Officer by the agency less the number of children
1057
similarly enrolled and covered as of June 30, 2008. Such
1058
percentage shall not exceed a percentage equal to 4.5194 percent
1059
less the percentage established pursuant to sub-subparagraph 8.a.
1060
9. The sum of 3.4 percent of the total base allocation for
1061
the funding of medical residency and fellowship programs, as
1062
determined by the Legislature, with primary emphasis given to the
1063
establishment of residencies in the fields of oncology,
1064
cardiology, and pulmonary medicine.
1065
(b)1. Beginning January 1, 1999, and continuing for 10
1066
years thereafter, the division shall from month to month certify
1067
to the Chief Financial Officer the amount derived from the
1068
cigarette tax imposed by s. 210.02, less the service charges
1069
provided for in s. 215.20 and less 0.9 percent of the amount
1070
derived from the cigarette tax imposed by s. 210.02, which shall
1071
be deposited into the Alcoholic Beverage and Tobacco Trust Fund,
1072
specifying an amount equal to 2.59 percent of the net
1073
collections, and that amount shall be paid to the Board of
1074
Directors of the H. Lee Moffitt Cancer Center and Research
1075
Institute, established under s. 1004.43, by warrant drawn by the
1076
Chief Financial Officer upon the State Treasury. These funds are
1077
hereby appropriated monthly out of the Cigarette Tax Collection
1078
Trust Fund, to be used for the purpose of constructing,
1079
furnishing, and equipping a cancer research facility at the
1080
University of South Florida adjacent to the H. Lee Moffitt Cancer
1081
Center and Research Institute. In fiscal years 1999-2000 and
1082
thereafter with the exception of fiscal year 2008-2009, the
1083
appropriation to the H. Lee Moffitt Cancer Center and Research
1084
Institute authorized by this subparagraph shall not be less than
1085
the amount that would have been paid to the H. Lee Moffitt Cancer
1086
Center and Research Institute for fiscal year 1998-1999 had
1087
payments been made for the entire fiscal year rather than for a
1088
6-month period thereof.
1089
2. Beginning July 1, 2002, and continuing through June 30,
1090
2004, the division shall, in addition to the distribution
1091
authorized in subparagraph 1., from month to month certify to the
1092
Chief Financial Officer the amount derived from the cigarette tax
1093
imposed by s. 210.02, less the service charges provided for in s.
1094
215.20 and less 0.9 percent of the amount derived from the
1095
cigarette tax imposed by s. 210.02, which shall be deposited into
1096
the Alcoholic Beverage and Tobacco Trust Fund, specifying an
1097
amount equal to 0.2632 percent of the net collections, and that
1098
amount shall be paid to the Board of Directors of the H. Lee
1099
Moffitt Cancer Center and Research Institute, established under
1100
s. 1004.43, by warrant drawn by the Chief Financial Officer.
1101
Beginning July 1, 2004, and continuing through June 30, 2016, the
1102
division shall, in addition to the distribution authorized in
1103
subparagraph 1., from month to month certify to the Chief
1104
Financial Officer the amount derived from the cigarette tax
1105
imposed by s. 210.02, less the service charges provided for in s.
1106
215.20 and less 0.9 percent of the amount derived from the
1107
cigarette tax imposed by s. 210.02, which shall be deposited into
1108
the Alcoholic Beverage and Tobacco Trust Fund, specifying an
1109
amount equal to 1.47 percent of the net collections, and that
1110
amount shall be paid to the Board of Directors of the H. Lee
1111
Moffitt Cancer Center and Research Institute, established under
1112
s. 1004.43, by warrant drawn by the Chief Financial Officer.
1113
These funds are appropriated monthly out of the Cigarette Tax
1114
Collection Trust Fund, to be used for the purpose of
1115
constructing, furnishing, and equipping a cancer research
1116
facility at the University of South Florida adjacent to the H.
1117
Lee Moffitt Cancer Center and Research Institute. In fiscal years
1118
2004-2005 and thereafter, the appropriation to the H. Lee Moffitt
1119
Cancer Center and Research Institute authorized by this
1120
subparagraph shall not be less than the amount that would have
1121
been paid to the H. Lee Moffitt Cancer Center and Research
1122
Institute in fiscal year 2001-2002, had this subparagraph been in
1123
effect.
1124
(d) During any month, the total amount credited or
1125
transferred from the Cigarette Tax Collection Trust Fund for any
1126
of the uses provided in subparagraph (c)1., subparagraph (c)2.,
1127
or subparagraph (c)4. may not be less than the corresponding
1128
reference year allocation, otherwise, all other amounts to be
1129
transferred or credited pursuant to paragraph (c) must be reduced
1130
proportionately by the minimum amount necessary so that a
1131
reassignment of the total reduction amounts proportionately
1132
increases the amounts to be credited or transferred pursuant to
1133
subparagraph (c)1., subparagraph (c)2., or subparagraph (c)4. to
1134
their corresponding reference year allocation levels, except that
1135
if the sum of all reference year allocations exceeds the total
1136
base allocation, credits or transfers shall be made only for the
1137
latter three purposes in relatively proportionate amounts.
1138
(e) If the total base allocation for a particular month
1139
exceeds the total base allocation for any previous month within
1140
the same fiscal year, the amounts to be credited or transferred
1141
for each of the purposes described in paragraph (c) shall be
1142
increased proportionately, subject to the availability of
1143
appropriations; however, the total supplemental allocation may
1144
not exceed an amount in accordance with the formula: SA = M x
1145
TBA(c) - TBA(i), where:
1146
1. "SA" is the maximum total supplemental allocation for
1147
the current month.
1148
2. "M" is the number of prior months in the current fiscal
1149
year.
1150
3. "TBA(c)" is the total base allocation for the current
1151
month.
1152
4. "TBA(i)" is the sum of total base allocations for all of
1153
the prior months in the current fiscal year.
1154
Section 21. Section 210.201, Florida Statutes, is amended
1155
to read:
1156
210.201 Cancer facilities research facility at the
1157
University of South Florida; establishment; funding.--The Board
1158
of Directors of the H. Lee Moffitt Cancer Center and Research
1159
Institute shall construct, furnish, and equip, and shall covenant
1160
to complete, the cancer research facility at the University of
1161
South Florida adjacent to the H. Lee Moffitt Cancer Center and
1162
Research Institute. Moneys transferred to the Board of Directors
1163
of the H. Lee Moffitt Cancer Center and Research Institute
1164
pursuant to s. 210.20 shall be used to secure financing to pay or
1165
secure bonds or financial products issued or incurred in
1166
connection with the financing of costs related to constructing,
1167
furnishing, and equipping the cancer research, treatment, and
1168
related facilities facility. Such financing may include the
1169
issuance of tax-exempt bonds or other forms of indebtedness by a
1170
local authority, municipality, or county pursuant to parts II and
1171
III of chapter 159. Such bonds shall not constitute state bonds
1172
for purposes of s. 11, Art. VII of the State Constitution, but
1173
shall constitute bonds of a "local agency," as defined in s.
1174
159.27(4). The cigarette user fee tax dollars pledged to the
1175
facilities this facility pursuant to s. 210.20 may be replaced
1176
annually by the Legislature from tobacco litigation settlement
1177
proceeds.
1178
Section 22. Subsections (1), (2), (12), (13), (14), and
1179
(15) of section 215.5602, Florida Statutes, are amended to read:
1180
215.5602 James and Esther King Biomedical Research
1181
Program.--
1182
(1) There is established within the Department of Health
1183
the James and Esther King Biomedical Research Program funded by
1184
the designated proceeds of s. 210.20(2)(c)5., as well as any
1185
prescribed portion of the Lawton Chiles Endowment Fund pursuant
1186
to s. 215.5601. The purpose of the James and Esther King
1187
Biomedical Research Program is to provide an annual and perpetual
1188
source of funding in order to support research initiatives that
1189
address the health care problems of Floridians in the areas of
1190
tobacco-related cancer, cardiovascular disease, stroke, and
1191
pulmonary disease. The long-term goals of the program are to:
1192
(a) Improve the health of Floridians by researching better
1193
prevention, diagnoses, treatments, and cures for cancer,
1194
cardiovascular disease, stroke, and pulmonary disease.
1195
(b) Expand the foundation of biomedical knowledge relating
1196
to the prevention, diagnosis, treatment, and cure of diseases
1197
related to tobacco use, including cancer, cardiovascular disease,
1198
stroke, and pulmonary disease.
1199
(c) Improve the quality of the state's academic health
1200
centers by bringing the advances of biomedical research into the
1201
training of physicians and other health care providers.
1202
(d) Increase the state's per capita funding for research by
1203
undertaking new initiatives in public health and biomedical
1204
research that will attract additional funding from outside the
1205
state.
1206
(e) Stimulate economic activity in the state in areas
1207
related to biomedical research, such as the research and
1208
production of pharmaceuticals, biotechnology, and medical
1209
devices.
1210
(f) Expand the research capacity and infrastructure needed
1211
to conduct research on tobacco-related illnesses, with the
1212
provision of fixed capital outlay project funding as deemed
1213
appropriate by the Biomedical Research Advisory Council within
1214
the program's annual appropriation and with up to 25 percent of
1215
the program's annual funding allocation applied for this purpose
1216
by the council.
1217
(2) Funds appropriated for the James and Esther King
1218
Biomedical Research Program shall be used exclusively for the
1219
award of grants and fellowships as established in this section;
1220
for research relating to the prevention, diagnosis, treatment,
1221
and cure of diseases related to tobacco use, including cancer,
1222
cardiovascular disease, stroke, and pulmonary disease; for
1223
expenditures related to the expansion of tobacco-related research
1224
capacity and infrastructure within the state, including the
1225
provision of capital outlay costs to achieve such purpose; and
1226
for expenses incurred in the administration of this section.
1227
Priority shall be granted to research designed to prevent or cure
1228
disease.
1229
(12) Beginning in fiscal year 2006-2007, the sum of $6
1230
million is appropriated annually from recurring funds in the
1231
General Revenue Fund to the Biomedical Research Trust Fund within
1232
the Department of Health for purposes of the James and Esther
1233
King Biomedical Research Program pursuant to this section. From
1234
these funds up to $1 million $250,000 shall be available for the
1235
operating costs of the Florida Center for Universal Research to
1236
Eradicate Disease.
1237
(13) By June 1, 2009, the Division of Statutory Revision of
1238
the Office of Legislative Services shall certify to the President
1239
of the Senate and the Speaker of the House of Representatives the
1240
language and statutory citation of this section, which is
1241
scheduled to expire January 1, 2015 2011.
1242
(14) The Legislature shall review the performance, the
1243
outcomes, and the financial management of the James and Esther
1244
King Biomedical Research Program during the 2014 2010 Regular
1245
Session of the Legislature and shall determine the most
1246
appropriate funding source and means of funding the program based
1247
on its review.
1248
(15) This section expires January 1, 2015 2011, unless
1249
reviewed and reenacted by the Legislature before that date.
1250
Section 23. Subsections (1) and (2) of section 381.922,
1251
Florida Statutes, are amended, present subsections (6), (7), and
1252
(8) of that section are amended and redesignated as subsections
1253
(7), (8), and (9), respectively, and a new subsection (6) is
1254
added to that section, to read:
1255
381.922 William G. "Bill" Bankhead, Jr., and David Coley
1256
Cancer Research Program.--
1257
(1) The William G. "Bill" Bankhead, Jr., and David Coley
1258
Cancer Research Program, which may be otherwise cited as the
1259
"Bankhead-Coley Program," is created within the Department of
1260
Health. The purpose of the program shall be to advance progress
1261
towards cures for cancer through grants awarded through a peer-
1262
reviewed, competitive process, and to expand cancer research and
1263
treatment capacity in the state.
1264
(2) The program shall provide grants for cancer research to
1265
further the search for cures for cancer, for the recruitment of
1266
cancer researchers and research teams to institutions within the
1267
state, for operational start-up grants for newly recruited cancer
1268
researchers and research teams, and for fixed capital outlay
1269
expenditures related to the expansion of cancer research and
1270
treatment capacity in Florida, with up to 25 percent of the
1271
program's annual allocation applied to these purposes.
1272
(a) Emphasis shall be given to the goals enumerated in s.
1273
381.921, as those goals support the advancement of such cures.
1274
(b) Preference may be given to grant proposals that foster
1275
collaborations among institutions, researchers, and community
1276
practitioners, as such proposals support the advancement of cures
1277
through basic or applied research, including clinical trials
1278
involving cancer patients and related networks.
1279
(6) Beginning in the 2008-2009 fiscal year, and every year
1280
thereafter, designated proceeds generated by s. 210.20(2)(c)5.
1281
shall be employed to enhance the purposes prescribed in this
1282
section.
1283
(7)(6) By June 1, 2009, the Division of Statutory Revision
1284
of the Office of Legislative Services shall certify to the
1285
President of the Senate and the Speaker of the House of
1286
Representatives the language and statutory citation of this
1287
section, which is scheduled to expire January 1, 2015 2011.
1288
(8)(7) The Legislature shall review the performance, the
1289
outcomes, and the financial management of the William G. "Bill"
1290
Bankhead, Jr., and David Coley Cancer Research Program during the
1291
2014 2010 Regular Session of the Legislature and shall determine
1292
the most appropriate funding source and means of funding the
1293
program based on its review.
1294
(9)(8) This section expires January 1, 2015 2011, unless
1295
reviewed and reenacted by the Legislature before that date.
1296
Section 24. Subsections (1) and (2) of section 395.701,
1297
Florida Statutes, are amended to read:
1298
395.701 Annual assessments on net operating revenues for
1299
inpatient and outpatient services to fund public medical
1300
assistance; administrative fines for failure to pay assessments
1301
when due; exemption.--
1302
(1) For the purposes of this section, the term:
1303
(a) "Agency" means the Agency for Health Care
1304
Administration.
1305
(b) "Gross operating revenue" or "gross revenue" means the
1306
sum of daily hospital service charges, ambulatory service
1307
charges, ancillary service charges, and other operating revenue.
1308
(c) "Hospital" means a health care institution as defined
1309
in s. 395.002(12), but does not include any hospital operated by
1310
the agency or the Department of Corrections.
1311
(d) "Net operating revenue" or "net revenue" means gross
1312
revenue less deductions from revenue.
1313
(e) "Relative share" means the percentage of the net
1314
operating revenue generated by a hospital for a certain month
1315
which comprises the total net operating revenue generated by all
1316
such hospitals for such month, as determined by the agency.
1317
(f)(e) "Total deductions from gross revenue" or "deductions
1318
from revenue" means reductions from gross revenue resulting from
1319
inability to collect payment of charges. Such reductions include
1320
bad debts; contractual adjustments; uncompensated care;
1321
administrative, courtesy, and policy discounts and adjustments;
1322
and other such revenue deductions, but also includes the offset
1323
of restricted donations and grants for indigent care.
1324
(2)(a) There is imposed upon each hospital an assessment in
1325
an amount equal to 1.5 percent of the annual net operating
1326
revenue for inpatient services for each hospital, such revenue to
1327
be determined by the agency, based on the actual experience of
1328
the hospital during its fiscal year as reported to the agency,
1329
less the sum of all relative shares of all monthly amounts
1330
credited or transferred during such fiscal year from the
1331
Cigarette Tax Collections Trust Fund to the Public Medical
1332
Assistance Trust Fund pursuant to s.210.20(2)(b)3. Within 6
1333
months after the end of each hospital fiscal year, the agency
1334
shall certify the amount of the assessment for each hospital. The
1335
assessment shall be payable to and collected by the agency in
1336
equal quarterly amounts, on or before the first day of each
1337
calendar quarter, beginning with the first full calendar quarter
1338
that occurs after the agency certifies the amount of the
1339
assessment for each hospital. All moneys collected pursuant to
1340
this subsection shall be deposited into the Public Medical
1341
Assistance Trust Fund.
1342
(b) There is imposed upon each hospital an assessment in an
1343
amount equal to 1 percent of the annual net operating revenue for
1344
outpatient services for each hospital during its fiscal year,
1345
such revenue to be determined by the agency, based on the actual
1346
experience of the hospital as reported to the agency, less the
1347
sum of all relative shares of all monthly amounts credited or
1348
transferred during such fiscal year from the Cigarette Tax
1349
Collections Trust Fund to the Public Medical Assistance Trust
1350
Fund pursuant to s. 210.20(2)(c)3. While prior year report
1351
worksheets may be reconciled to the hospital's audited financial
1352
statements, no additional audited financial components may be
1353
required for the purposes of determining the amount of the
1354
assessment imposed pursuant to this section other than those in
1355
effect on July 1, 2000. Within 6 months after the end of each
1356
hospital fiscal year, the agency shall certify the amount of the
1357
assessment for each hospital. The assessment shall be payable to
1358
and collected by the agency in equal quarterly amounts, on or
1359
before the first day of each calendar quarter, beginning with the
1360
first full calendar quarter that occurs after the agency
1361
certifies the amount of the assessment for each hospital. All
1362
moneys collected pursuant to this subsection shall be deposited
1363
into the Public Medical Assistance Trust Fund.
1364
Section 25. Section 395.7015, Florida Statutes, is
1365
repealed.
1366
Section 26. By December 1, 2009, and before December 1 of
1367
each year thereafter, the Department of Health shall submit to
1368
the Governor, the President of the Senate, and the Speaker of the
1369
House of Representatives a report containing an estimate of the
1370
financial impact of tobacco use and related illnesses on the
1371
state's economy and its taxpayers for each of the prior 10 years,
1372
as well as an estimate of the value of cost savings associated
1373
with the expenditure of revenues generated by the cigarette user
1374
fee imposed by s. 210.02, Florida Statutes, during the same
1375
period.
1376
Section 27. This act shall take effect July 1, 2008.
CODING: Words stricken are deletions; words underlined are additions.