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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

5

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

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

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

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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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requiring the Department of Health to submit a report to

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the Governor and the Legislature by a certain date which

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contains an estimate of the financial impact of tobacco

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use and related illnesses on the economy and taxpayers;

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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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215.5602.

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

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disposing, in any manner, of cigarettes.

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

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cigarettes within this state.

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

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other than those fixed for debt service.

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(15) "Total collections" means the total amount

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derived from the cigarette user fee during a specified

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period of time.

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

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collections less the service charge prescribed in s. 215.20.

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

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

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firm or corporation outside or inside the state by receiving

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cigarettes in interstate or intrastate commerce and storing such

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cigarettes subject to distribution or delivery upon order from

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said principal to wholesale dealers and other distributing agents

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inside or outside this state.

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

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cigarettes are sold or where cigarettes are stored or kept for

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

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

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located.

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

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represents a manufacturer of cigarettes but who has no place of

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business in this state where cigarettes are stored. A

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manufacturer's representative is required to obtain any

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cigarettes required by her or him through a wholesale dealer in

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

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Division of Alcoholic Beverages and Tobacco of the Department of

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Business and Professional Regulation.

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

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

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delivery beyond the borders of this state. Each permit shall

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entitle the permittee to store such cigarettes under bond at one

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location in this state pending shipment beyond the borders of

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this state.

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

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

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

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stamped or marked with the indicia of any other user fee

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

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been affixed a counterfeit or fraudulent indicium or stamp.

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

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be placed on cigarette packages that evidence payment of the user

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fee tax on cigarettes under s. 210.02.

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

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

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directly or indirectly, a finished cigarette for sale or

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distribution.

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

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

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

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

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have false manufacturing labels, tobacco product packs with

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counterfeit user fee tax stamps, or any combination thereof.

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

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read:

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     210.02 Cigarette user fee tax imposed; collection.--

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

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

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

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

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the following amounts, except as hereinafter otherwise provided,

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for cigarettes of standard dimensions:

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

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thousand, 66.95 16.95 mills on each cigarette.

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

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

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each cigarette.

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

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

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cigarette.

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     (2)  The description of cigarettes contained in paragraphs

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

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standard as to dimensions for the taxing purposes of assessing a

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

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

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

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

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each such cigarette.

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

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packed in varying quantities of 20 cigarettes or less, except

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

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following rate shall govern:

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     (a)  Packages containing 10 cigarettes or less require a

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66.9-cent user fee 16.95-cent tax.

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

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

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

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packed in varying quantities of 20 cigarettes or less, except

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

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following rates shall govern:

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     (a)  Packages containing 10 cigarettes or less require a

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133.9-cent user fee 33.9-cent tax.

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

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

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

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packed in varying quantities of 20 cigarettes or less, except

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

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following rates shall govern:

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     (a)  Packages containing 10 cigarettes or less require a

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267.8-cent user fee 67.8-cent tax.

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

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

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

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division for deposit and distribution as hereinafter provided

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

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not such sale or transfer be to the ultimate purchaser or

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

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from the purchaser or consumer, and the purchaser or consumer

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

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

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

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

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

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

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

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a given period is assessed without allocating it to any

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

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assessment. Whenever cigarettes are shipped from outside the

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state to anyone other than a distributing agent or wholesale

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dealer, the person receiving the cigarettes shall be responsible

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

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to the division.

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

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cigarettes shall be uniform throughout the state.

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

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read:

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     210.021 Payment of user fees taxes by certified check or

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electronic funds transfer.--

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     (1)  The Secretary of Business and Professional Regulation

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may require a dealer who sells cigarettes within the state to

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remit by certified check or electronic funds transfer any user

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fee tax imposed under s. 210.02.

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     (2)  The Secretary of Business and Professional Regulation

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

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

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licensure or appointment, remit by certified check or electronic

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

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

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120.536(1) and 120.54 to administer this section.

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

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read:

259

     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

263

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-

289

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

295

government veterans' hospitals in Florida for the personal use or

296

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

332

read:

333

     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

336

stamp insignia through the device of metering machines authorized

337

in this part.

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

339

stamps of such denominations and quantities as may be necessary

340

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

341

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

342

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

344

prescribed by the division must be designed and furnished in a

345

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

348

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

349

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

350

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

351

manufacturers of cigarettes, within or without the state as agent

352

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

355

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

356

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

357

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

360

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

361

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

365

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

368

distributor who sells or deals in any form of candy which

369

resembles drug paraphernalia. Stamping locations approved by the

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division shall be responsible for computing the discount they

371

receive pursuant to this paragraph, and said computations shall

372

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

373

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

374

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

375

except as hereinafter provided.

376

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

377

shall be authorized to purchase stamps by furnishing an

378

irrevocable letter of credit or unconditional guaranty contract

379

or by executing bond with a solvent surety company qualified to

380

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

381

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

382

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

383

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

384

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

385

supplemental purchases for cash. Payment for each month's

386

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

387

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

388

aforesaid bonding and payment provisions by any agent may result

389

in the revocation of his or her privilege to purchase stamps

390

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

391

discretion of the division.

392

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

393

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

394

or the rules and regulations promulgated hereunder and such agent

395

may in addition be punished in accordance with the provisions of

396

this part.

397

     (5)  Agents or wholesale dealers may sell stamped but

398

unassessed untaxed cigarettes to the Seminole Indian Tribe, or to

399

members thereof, for retail sale. Agents or wholesale dealers

400

shall treat such cigarettes and the sale thereof in the same

401

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

402

under this part, but agents or wholesale dealers shall not

403

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

404

The purchaser hereunder shall be responsible to the agent or

405

wholesale dealer for the services and expenses incurred in

406

affixing the stamps and accounting therefor.

407

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

408

read:

409

     210.06  Affixation of stamps; presumption.--

410

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

411

be affixed to such package or container of such cigarettes such

412

stamps as are required under this section within 10 days after

413

receipt of such products. Dealers outside this state shall affix

414

such stamps before the shipment of cigarettes into this state.

415

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

416

packages intended for sale or distribution to consumers subject

417

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

418

provided in this part.

419

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

420

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

421

distributed by a manufacturer pursuant to federal regulations.

422

     (c)  Dealers may apply stamps only to cigarette packages

423

received directly from a manufacturer or importer of cigarettes,

424

or a distributing agent representing a manufacturer or importer

425

of cigarettes, who possesses a valid and current permit under

426

this part.

427

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

428

container of cigarettes prior to exposing for sale or selling

429

such cigarettes and examine the packages contained therein for

430

the purpose of ascertaining whether or not the said packages have

431

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

432

improperly stamped packages of cigarettes are discovered, the

433

retail dealer shall immediately notify the dealer from whom said

434

cigarettes were purchased. Upon such notification, the dealer

435

from whom said cigarettes were purchased shall replace such

436

unstamped or improperly stamped packages of cigarettes with those

437

upon which stamps have been properly affixed, or immediately

438

affix thereto the proper amount of stamps.

439

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

440

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

441

other person without the stamps affixed, the presumption shall be

442

that such cigarettes are kept in violation of the provisions of

443

this law.

444

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

445

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

446

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

447

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

448

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

449

not impose an additional charge on stamps for printing costs.

450

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

451

person, other than a dealer or distributing agent that receives

452

unstamped cigarette packages directly from a cigarette

453

manufacturer or importer in accordance with this section and s.

454

210.085, shall hold or possess an unstamped cigarette package.

455

Dealers shall be permitted to set aside, without application of

456

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

457

for sale or distribution outside this state. If a dealer

458

maintains stocks of unstamped cigarette packages, such unstamped

459

packages shall be stored separately from stamped product

460

packages. No unstamped cigarette packages shall be transferred by

461

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

462

to another person within this state.

463

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

464

read:

465

     210.07  Metering machines.--

466

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

467

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

468

metering machines. The division shall prescribe and promulgate

469

appropriate rules and regulations governing the use of metering

470

machines, the procedure for the payment of such cigarette user

471

fees taxes through the use thereof, requiring adequate surety

472

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

473

machines and payment of all cigarette user fees taxes that might

474

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

475

regulations necessary and proper to govern the use of same.

476

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

477

applicable to cigarette user fees taxes paid through the use of

478

metering machines.

479

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

480

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

481

making of reports, permits and revocation of permits, seizures

482

and forfeitures, penalties, and all other provisions pertaining

483

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

484

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

485

fees taxes through the use of metering machines.

486

     (3)  Wholesale or retail dealers of cigarettes owning,

487

leasing, furnishing, or operating cigarette vending machines

488

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

489

identification sticker furnished by the division. Every sticker

490

shall show the vending machine serial number and the name and

491

address of the cigarette wholesale or retail dealer owning,

492

leasing, furnishing, or operating said vending machine.

493

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

494

state that does not have affixed thereto the identification

495

sticker required by this section nor shall any vending machine be

496

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

497

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

498

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

499

manner that the cigarette user fee tax stamps or meter

500

impressions of stamps affixed thereto are clearly visible. It

501

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

502

cigarette vending machine in this state to furnish the division

503

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

504

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

505

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

506

read:

507

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

508

agent, or distributing agent shall file with the division a

509

surety bond, certificate of deposit, or irrevocable letter of

510

credit acceptable to the division in an amount equal to 110

511

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

512

not less than $2,000.

513

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

514

Florida Statutes, are amended to read:

515

     210.09  Records to be kept; reports to be made;

516

examination.--     

517

     (2)  The division is authorized to prescribe and promulgate

518

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

519

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

520

division by any manufacturer, importer, distributing agent,

521

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

522

person handling, transporting or possessing cigarettes for sale

523

or distribution within the state as may be necessary to collect

524

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

525

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

526

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

527

division by rule or regulation shall prescribe that reports be

528

made more often.

529

     (3)  All manufacturers, importers, distributing agents,

530

wholesale dealers, agents, or retail dealers shall maintain and

531

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

532

transaction takes place, such records of cigarettes received,

533

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

534

division. The division or its duly authorized representative is

535

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

536

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

537

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

538

any such manufacturers, importers, distributing agents, wholesale

539

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

540

delivery of cigarettes assessable taxable under this part. To

541

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

542

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

543

the division or its duly authorized representatives the means,

544

facilities, and opportunity for such examinations as are herein

545

provided for and required.

546

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

547

read:

548

     210.11 Refunds; sales of stamps and payment of user fee

549

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

550

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

551

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

552

therein, or have become unfit for use and consumption or

553

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

554

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

555

fee tax paid with respect to such cigarettes less any discount

556

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

557

the user fee tax by metering machine, upon receipt of

558

satisfactory evidence of the dealer's right to receive such

559

refund or credit, provided application for refund or credit is

560

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

561

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

562

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

563

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

564

possession of any person. The division may prescribe necessary

565

rules and regulations concerning refunds, credits, sales of

566

stamps, and redemptions under the provisions of this part.

567

Appropriation is hereby made out of revenues collected under this

568

part for payment of such allowances.

569

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

570

read:

571

     210.13 Determination of user fee tax on failure to file a

572

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

573

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

574

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

575

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

576

Division of Alcoholic Beverages and Tobacco that such return or

577

corrected or sufficient return is required, the division shall

578

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

579

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

580

such determination and give written notice of such determination

581

to such dealer. Such a determination shall finally and

582

irrevocably fix the user fee tax unless the dealer against whom

583

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

584

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

585

Judicial review shall not be granted unless the amount of the

586

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

587

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

588

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

589

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

590

approve, conditioned that if such proceeding be dismissed or the

591

decision of the division confirmed, the applicant for review will

592

pay all costs and charges which may accrue against the applicant

593

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

594

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

595

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

596

charges aforesaid, in which event the applicant shall not be

597

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

598

granting of such review by such court.

599

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

600

read:

601

     210.14 Warrant for collection of user fees taxes.--

602

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

603

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

604

division may issue a warrant under its official seal, which

605

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

606

of the circuit court of any county where the delinquent person

607

taxpayer owns property. Upon presentation of the warrant, the

608

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

609

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

610

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

611

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

612

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

613

allowed by law for similar services rendered in judgment

614

execution proceedings. The warrant issued by the division may

615

then be directed to the sheriff of any county commanding that

616

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

617

specified delinquent person found within the sheriff's

618

jurisdiction, for the payment of the amount of such delinquency

619

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

620

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

621

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

622

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

623

days after receipt of such warrant.

624

     (2)  The amount of the warrant docketed pursuant to

625

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

626

interest in real or personal property of the person against whom

627

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

628

directed shall proceed upon the warrant in all respects and with

629

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

630

respect to executions issued against goods and chattels upon

631

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

632

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

633

to be collected in the same manner.

634

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

635

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

636

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

637

such officer or employee shall have all the power conferred by

638

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

639

compensation in excess of the actual expenses paid in the

640

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

641

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

642

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

643

thereunder as if the state had recovered judgment therefor and

644

execution thereon had been returned satisfied.

645

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

646

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

647

to read:

648

     210.15  Permits.--

649

     (1)

650

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

651

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

652

any person or persons owning directly or indirectly, in the

653

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

654

applicant:

655

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

656

delinquent cigarette user fees taxes;

657

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

658

2 years;

659

     3.  Has been convicted of selling stolen or counterfeit

660

cigarettes, receiving stolen cigarettes, or being involved in the

661

counterfeiting of cigarettes;

662

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

663

offense against the cigarette laws of this state or convicted in

664

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

665

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

666

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

667

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

668

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

669

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

670

crime;

671

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

672

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

673

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

674

States, or manufactured for sale or distribution in the United

675

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

676

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

677

seq.).

678

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

679

for which a wholesale dealer, distributing agent, or exporter

680

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

681

any traveling location, such as an itinerant store or industrial

682

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

683

Cigarettes may be purchased for retail purposes only from a

684

person holding a wholesale dealer permit. The invoice for the

685

purchase of cigarettes must show the place of business for which

686

the purchase is made and the cigarettes cannot be transferred to

687

any other place of business for the purpose of resale.

688

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

689

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

690

on cigarettes except to qualified wholesale dealers.     

691

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

692

read:

693

     210.18 Penalties for user fee tax evasion; reports by

694

sheriffs.--

695

     (1)  Any person who possesses or transports any unstamped

696

packages of cigarettes upon the public highways, roads, or

697

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

698

offers for sale unstamped packages of cigarettes in violation of

699

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

700

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

701

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

702

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

703

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

704

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

705

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

706

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

707

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

708

or s. 775.084.

709

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

710

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

711

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

712

division under this part commits a misdemeanor of the first

713

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

714

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

715

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

716

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

717

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

718

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

719

or s. 775.084.

720

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

721

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

722

machines prescribed by the division under the provisions of this

723

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

724

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

725

falsely or fraudulently made, forged, altered, or counterfeited

726

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

727

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

728

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

729

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

730

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

731

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

732

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

733

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

734

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

735

manufactured in or brought into this state in accordance with the

736

regulatory provisions of the cigarette law, and upon which such

737

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

738

penalties otherwise provided in the cigarette law, personally

739

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

740

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

741

such person or corporation by suit or by restitution if the

742

person taxpayer is convicted, found guilty, or pleads nolo

743

contendere or guilty to any crime under this chapter. This

744

paragraph is applicable even if adjudication is withheld.

745

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

746

distributor licensed under the cigarette law, to a state bonded

747

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

748

cartons of such cigarettes, which cigarettes were purchased by

749

such possessor outside the state in accordance with the laws of

750

the place where purchased and brought into this state by such

751

possessor. The burden of proof that such cigarettes were

752

purchased outside the state and in accordance with the laws of

753

the place where purchased shall in all cases be upon the

754

possessor of such cigarettes.

755

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

756

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

757

manufactured in or brought into this state in accordance with the

758

regulatory provisions of such law, which are found in the

759

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

760

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

761

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

762

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

763

deputy sheriff, or other law enforcement agent and shall be

764

forfeited to the state.

765

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

766

not in excess of three cartons of cigarettes, which cigarettes

767

were purchased by such possessor outside the state in accordance

768

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

769

state by such possessor.

770

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

771

licensee under the provisions of this part, who possesses,

772

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

773

removing, depositing, or concealing of, any unstamped cigarettes

774

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

775

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

776

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

777

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

778

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

779

authorized under s. 210.02 on the unstamped cigarettes.

780

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

781

licensee under the provisions of this part, who possesses,

782

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

783

removing, depositing, or concealing of, any unstamped cigarettes

784

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

785

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

786

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

787

s. 775.083, or s. 775.084.

788

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

789

in excess of three cartons of such cigarettes purchased by such

790

possessor outside the state in accordance with the laws of the

791

place where purchased and brought into this state by such

792

possessor. The burden of proof that such cigarettes were

793

purchased outside the state and in accordance with the laws of

794

the place where purchased shall in all cases be upon the

795

possessor of such cigarettes.

796

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

797

law enforcement officer, upon the seizure of any unstamped

798

cigarettes under this section, shall promptly report such seizure

799

to the division or its representative, together with a

800

description of all such unstamped cigarettes seized, so that the

801

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

802

illicit cigarette business. The division shall keep records

803

showing the number of seizures and seized cigarettes reported to,

804

or seized by, the division.

805

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

806

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

807

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

808

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

809

     (b)  Any person who violates the provisions of this

810

subsection:

811

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

812

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

813

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

814

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

815

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

816

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

817

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

818

possession for sale of counterfeit cigarettes by any person or by

819

a manufacturer, importer, distributing agent, wholesale dealer,

820

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

821

related machinery by the division or any law enforcement agency.

822

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

823

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

824

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

825

permit under the provisions of this chapter and who violates this

826

subsection commits a felony of the third degree, punishable as

827

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

828

to the imposition of fines and additional penalties as follows:

829

     1.  If the quantity of counterfeit cigarettes sold or

830

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

831

equivalent, the fine for a first violation shall not exceed

832

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

833

cigarettes, whichever is greater. A subsequent violation may

834

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

835

times the retail value of the counterfeit cigarettes, whichever

836

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

837

by the division.

838

     2.  If the quantity of counterfeit cigarettes sold or

839

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

840

equivalent, the fine for a first violation shall not exceed

841

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

842

cigarettes, whichever is greater. A subsequent violation may

843

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

844

times the retail value of the counterfeit cigarettes, whichever

845

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

846

by the division.

847

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

848

permit, under the provisions of this chapter and who violates

849

this subsection commits a felony of the third degree, punishable

850

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

851

subject to the imposition of fines and additional penalties as

852

follows:

853

     1.  If the quantity of counterfeit cigarettes sold or

854

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

855

equivalent, the fine for a first violation shall not exceed

856

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

857

cigarettes, whichever is greater. A subsequent violation may

858

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

859

times the retail value of the counterfeit cigarettes, whichever

860

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

861

division.

862

     2.  If the quantity of counterfeit cigarettes sold or

863

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

864

equivalent, the fine for a first violation shall not exceed

865

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

866

cigarettes, whichever is greater. A subsequent violation may

867

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

868

times the retail value of the counterfeit cigarettes, whichever

869

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

870

division.

871

872

For purposes of this subsection, any counterfeit cigarettes

873

seized by the division shall be destroyed.

874

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

875

Statutes, is amended to read:

876

     210.181  Civil penalties.--     

877

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

878

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

879

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

880

of five times the unpaid user fees tax due.

881

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

882

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

883

     210.185  Prohibition on sale or distribution of cigarettes;

884

criminal penalties; administrative sanctions; applicability.--

885

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

886

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

887

cigarettes shall file with the division, for all cigarettes

888

imported into the United States to which the person has affixed

889

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

890

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

891

to the person importing the cigarettes into the United States

892

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

893

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

894

internal revenue tax information required by the United States

895

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

896

by an officer of the manufacturer or importer under penalty of

897

perjury, certifying that the manufacturer or importer has

898

complied with the package health warning and ingredient reporting

899

requirements of the Federal Cigarette Labeling and Advertising

900

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

901

cigarettes.     

902

     (6)  GENERAL PROVISIONS.--

903

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

904

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

905

may bring an action for appropriate injunctive or other equitable

906

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

907

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

908

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

909

complaint, assessable taxable costs, and reasonable attorney's

910

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

911

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

912

the actual damages sustained by reason of the violation.

913

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

914

read:

915

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

916

keep records showing the total amount of user fees taxes

917

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

918

regular office hours of the division. The division shall maintain

919

records that identify which agent or wholesale dealer affixed the

920

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

921

records must be made available for public inspection and retained

922

for at least 3 years.

923

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

924

Statutes, is amended to read:

925

     210.20  Employees and assistants; distribution of funds.--

926

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

927

     1. "Agency" means the Agency for Health Care

928

Administration.

929

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

930

210.02.

931

     3. "Council" means the Biomedical Research Advisory Council

932

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

933

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

934

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

935

the cigarette user fee during a specified period of time.

936

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

937

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

938

     7. "Reference year allocation" means the total amount

939

credited or transferred from the Cigarette Tax Collection Trust

940

Fund to a particular trust fund or the General Revenue Fund

941

during the reference year divided by 12.

942

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

943

percent of the average of the projected net collections for the

944

fiscal year containing such month, based on the most recent

945

estimates generated by a Revenue Estimating Conference convened

946

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

947

whichever is less.

948

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

949

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

950

same into a trust fund in the State Treasury designated

951

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

952

distributed as follows:

953

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

954

the Chief Financial Officer the amount of net collections derived

955

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

956

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

957

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

958

which shall be deposited into the Alcoholic Beverage and Tobacco

959

Trust Fund, specifying the amounts to be transferred from the

960

Cigarette Tax Collection Trust Fund and credited on the following

961

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

962

Alcoholic Beverage and Tobacco Trust Fund an amount equal to the

963

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

964

total collection provided for in s. 215.20 as follows:

965

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

966

total base allocation net collections to the Revenue Sharing

967

Trust Fund for Counties for distribution pursuant to the Florida

968

Revenue Sharing Act.

969

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

970

base allocation to the Public Medical Assistance Trust Fund net

971

collections for the funding of indigent health care pursuant to

972

s. 409.918 to the Public Medical Assistance Trust Fund.

973

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

974

the Public Medical Assistance trust Fund specifically to

975

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

976

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

977

the H. Lee Moffitt Cancer Center and Research Institute

978

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

979

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

980

Financial Officer upon the State Treasury. The revenues derived

981

from this allocation are separate and distinct from any funds

982

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

983

and Esther King Biomedical Research Program or the Bankhead-Coley

984

Cancer Research Program. Funds derived pursuant this subparagraph

985

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

986

equipping cancer research, treatment, and related facilities. The

987

appropriation to the H. Lee Moffitt Cancer Center and Research

988

Institute authorized by this subparagraph shall not be less than

989

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

990

Cancer Research Institute for fiscal year 2006-2007 had this

991

subparagraph been in effect.

992

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

993

the Biomedical Research Trust Fund for distribution by the

994

Biomedical Research Advisory Council to grantees of the James and

995

Esther King Biomedical Research Program authorized pursuant to s.

996

215.5602 and the Bankhead-Coley Cancer Research Program

997

authorized pursuant to s. 381.922, with such programs dividing

998

equally the allocation derived from this subparagraph. The

999

provisions of ss. 215.5602 and 381.922 shall determine the

1000

methods of distribution under the respective programs.

1001

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

1002

the Medical Care Trust Fund for the funding of the Medically

1003

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

1004

(d) and 409.904(2).

1005

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

1006

to the Medical Care Trust Fund for the funding of annual

1007

adjustments to fee reimbursements made to physicians for services

1008

provided for children under the Medicaid program so that

1009

reimbursement rates for such services are made equal to the

1010

Medicaid reimbursement rates as such rates existed on January 1,

1011

2008.

1012

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

1013

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

1014

care coverage through the Florida Kidcare program established in

1015

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

1016

cigarette user fee collections to increase enrollment of

1017

previously uninsured children in the Florida Kidcare program and

1018

minimize disruption of such coverage for children at risk for

1019

involuntary or premature disenrollment from the program.

1020

Therefore, for the purposes of this subparagraph, such credits

1021

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

1022

follows:

1023

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

1024

credited to fund efforts to ensure appropriate retention of

1025

coverage by, and prevention of, the involuntary or premature

1026

disenrollment from coverage for children enrolled in the Florida

1027

Kidcare program during any month in which such children are not

1028

subject to disenrollment under the laws and policies in effect,

1029

but would have been subject to disenrollment if the laws and

1030

policies governing the Florida Kidcare program in effect on June

1031

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

1032

percentage shall be determined by the agency for each fiscal year

1033

based on the estimated amount needed to fully fund such retention

1034

and prevention efforts, except that such percentage shall not

1035

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

1036

remain fixed throughout the fiscal year.

1037

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

1038

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

1039

Florida Kidcare program and covered under Title XXI of the Social

1040

Security Act during any month. The percentage shall be determined

1041

by the agency based on the estimated amount needed to fund

1042

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

1043

the Florida Kidcare program and covered under Title XXI of the

1044

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

1045

Financial Officer by the agency less the number of children

1046

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

1047

percentage shall not exceed a percentage equal to 1.01 percent

1048

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

1049

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

1050

for the funding of medical residency and fellowship programs, as

1051

determined by the Legislature, with primary emphasis given to the

1052

establishment of residencies in the fields of oncology,

1053

cardiology, and pulmonary medicine.

1054

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

1055

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

1056

Waiver Program.

1057

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

1058

years thereafter, the division shall from month to month certify

1059

to the Chief Financial Officer the amount derived from the

1060

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

1061

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

1062

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

1063

be deposited into the Alcoholic Beverage and Tobacco Trust Fund,

1064

specifying an amount equal to 2.59 percent of the net

1065

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

1066

Directors of the H. Lee Moffitt Cancer Center and Research

1067

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

1068

Chief Financial Officer upon the State Treasury. These funds are

1069

hereby appropriated monthly out of the Cigarette Tax Collection

1070

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

1071

furnishing, and equipping a cancer research facility at the

1072

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

1073

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

1074

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

1075

appropriation to the H. Lee Moffitt Cancer Center and Research

1076

Institute authorized by this subparagraph shall not be less than

1077

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

1078

Center and Research Institute for fiscal year 1998-1999 had

1079

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

1080

6-month period thereof.

1081

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

1082

2004, the division shall, in addition to the distribution

1083

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

1084

Chief Financial Officer the amount derived from the cigarette tax

1085

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

1086

215.20 and less 0.9 percent of the amount derived from the

1087

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

1088

the Alcoholic Beverage and Tobacco Trust Fund, specifying an

1089

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

1090

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

1091

Moffitt Cancer Center and Research Institute, established under

1092

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

1093

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

1094

division shall, in addition to the distribution authorized in

1095

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

1096

Financial Officer the amount derived from the cigarette tax

1097

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

1098

215.20 and less 0.9 percent of the amount derived from the

1099

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

1100

the Alcoholic Beverage and Tobacco Trust Fund, specifying an

1101

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

1102

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

1103

Moffitt Cancer Center and Research Institute, established under

1104

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

1105

These funds are appropriated monthly out of the Cigarette Tax

1106

Collection Trust Fund, to be used for the purpose of

1107

constructing, furnishing, and equipping a cancer research

1108

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

1109

Lee Moffitt Cancer Center and Research Institute. In fiscal years

1110

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

1111

Cancer Center and Research Institute authorized by this

1112

subparagraph shall not be less than the amount that would have

1113

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

1114

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

1115

effect.

1116

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

1117

transferred from the Cigarette Tax Collection Trust Fund for any

1118

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

1119

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

1120

reference year allocation, otherwise, all other amounts to be

1121

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

1122

proportionately by the minimum amount necessary so that a

1123

reassignment of the total reduction amounts proportionately

1124

increases the amounts to be credited or transferred pursuant to

1125

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

1126

their corresponding reference year allocation levels, except that

1127

if the sum of all reference year allocations exceeds the total

1128

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

1129

latter three purposes in relatively proportionate amounts.

1130

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

1131

exceeds the total base allocation for any previous month within

1132

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

1133

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

1134

increased proportionately, subject to the availability of

1135

appropriations; however, the total supplemental allocation may

1136

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

1137

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

1138

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

1139

the current month.

1140

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

1141

year.

1142

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

1143

month.

1144

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

1145

the prior months in the current fiscal year.

1146

     Section 21.  Section 210.201, Florida Statutes, is amended

1147

to read:

1148

     210.201 Cancer facilities research facility at the

1149

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

1150

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

1151

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

1152

to complete, the cancer research facility at the University of

1153

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

1154

Research Institute. Moneys transferred to the Board of Directors

1155

of the H. Lee Moffitt Cancer Center and Research Institute

1156

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

1157

secure bonds or financial products issued or incurred in

1158

connection with the financing of costs related to constructing,

1159

furnishing, and equipping the cancer research, treatment, and

1160

related facilities facility. Such financing may include the

1161

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

1162

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

1163

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

1164

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

1165

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

1166

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

1167

facilities this facility pursuant to s. 210.20 may be replaced

1168

annually by the Legislature from tobacco litigation settlement

1169

proceeds.

1170

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

1171

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

1172

     215.5602  James and Esther King Biomedical Research

1173

Program.--

1174

     (1)  There is established within the Department of Health

1175

the James and Esther King Biomedical Research Program funded by

1176

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

1177

prescribed portion of the Lawton Chiles Endowment Fund pursuant

1178

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

1179

Biomedical Research Program is to provide an annual and perpetual

1180

source of funding in order to support research initiatives that

1181

address the health care problems of Floridians in the areas of

1182

tobacco-related cancer, cardiovascular disease, stroke, and

1183

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

1184

     (a)  Improve the health of Floridians by researching better

1185

prevention, diagnoses, treatments, and cures for cancer,

1186

cardiovascular disease, stroke, and pulmonary disease.

1187

     (b)  Expand the foundation of biomedical knowledge relating

1188

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

1189

related to tobacco use, including cancer, cardiovascular disease,

1190

stroke, and pulmonary disease.

1191

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

1192

centers by bringing the advances of biomedical research into the

1193

training of physicians and other health care providers.

1194

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

1195

undertaking new initiatives in public health and biomedical

1196

research that will attract additional funding from outside the

1197

state.

1198

     (e)  Stimulate economic activity in the state in areas

1199

related to biomedical research, such as the research and

1200

production of pharmaceuticals, biotechnology, and medical

1201

devices.

1202

     (f) Expand the research capacity and infrastructure needed

1203

to conduct research on tobacco-related illnesses, with the

1204

provision of fixed capital outlay project funding as deemed

1205

appropriate by the Biomedical Research Advisory Council within

1206

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

1207

the program's annual funding allocation applied for this purpose

1208

by the council.

1209

     (2)  Funds appropriated for the James and Esther King

1210

Biomedical Research Program shall be used exclusively for the

1211

award of grants and fellowships as established in this section;

1212

for research relating to the prevention, diagnosis, treatment,

1213

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

1214

cardiovascular disease, stroke, and pulmonary disease; for

1215

expenditures related to the expansion of tobacco-related research

1216

capacity and infrastructure within the state, including the

1217

provision of capital outlay costs to achieve such purpose; and

1218

for expenses incurred in the administration of this section.

1219

Priority shall be granted to research designed to prevent or cure

1220

disease.

1221

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

1222

million is appropriated annually from recurring funds in the

1223

General Revenue Fund to the Biomedical Research Trust Fund within

1224

the Department of Health for purposes of the James and Esther

1225

King Biomedical Research Program pursuant to this section. From

1226

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

1227

operating costs of the Florida Center for Universal Research to

1228

Eradicate Disease.

1229

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

1230

the Office of Legislative Services shall certify to the President

1231

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

1232

language and statutory citation of this section, which is

1233

scheduled to expire January 1, 2015 2011.

1234

     (14)  The Legislature shall review the performance, the

1235

outcomes, and the financial management of the James and Esther

1236

King Biomedical Research Program during the 2014 2010 Regular

1237

Session of the Legislature and shall determine the most

1238

appropriate funding source and means of funding the program based

1239

on its review.

1240

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

1241

reviewed and reenacted by the Legislature before that date.

1242

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

1243

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

1244

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

1245

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

1246

added to that section, to read:

1247

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

1248

Cancer Research Program.--

1249

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

1250

Cancer Research Program, which may be otherwise cited as the

1251

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

1252

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

1253

towards cures for cancer through grants awarded through a peer-

1254

reviewed, competitive process, and to expand cancer research and

1255

treatment capacity in the state.

1256

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

1257

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

1258

cancer researchers and research teams to institutions within the

1259

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

1260

researchers and research teams, and for fixed capital outlay

1261

expenditures related to the expansion of cancer research and

1262

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

1263

program's annual allocation applied to these purposes.

1264

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

1265

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

1266

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

1267

collaborations among institutions, researchers, and community

1268

practitioners, as such proposals support the advancement of cures

1269

through basic or applied research, including clinical trials

1270

involving cancer patients and related networks.

1271

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

1272

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

1273

shall be employed to enhance the purposes prescribed in this

1274

section.

1275

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

1276

of the Office of Legislative Services shall certify to the

1277

President of the Senate and the Speaker of the House of

1278

Representatives the language and statutory citation of this

1279

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

1280

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

1281

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

1282

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

1283

2014 2010 Regular Session of the Legislature and shall determine

1284

the most appropriate funding source and means of funding the

1285

program based on its review.

1286

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

1287

reviewed and reenacted by the Legislature before that date.

1288

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

1289

each year thereafter, the Department of Health shall submit to

1290

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

1291

House of Representatives a report containing an estimate of the

1292

financial impact of tobacco use and related illnesses on the

1293

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

1294

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

1295

with the expenditure of revenues generated by the cigarette user

1296

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

1297

period.

1298

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