Florida Senate - 2014                                    SB 1550
       
       
        
       By Senator Evers
       
       
       
       
       
       2-01195A-14                                           20141550__
    1                        A bill to be entitled                      
    2         An act relating to tax-exempt cigarettes; amending s.
    3         210.01, F.S.; defining terms; amending s. 210.05,
    4         F.S.; authorizing agents and wholesale dealers to sell
    5         stamped and untaxed cigarettes to tribal business
    6         entities; authorizing agents and wholesale dealers to
    7         file a claim with the Division of Alcoholic Beverages
    8         and Tobacco for a refund of specified taxes and
    9         surcharges; conforming a cross-reference; repealing s.
   10         210.1801, F.S., relating to the sale of tax-exempt
   11         cigarettes to members of recognized Indian tribes;
   12         creating s. 210.221, F.S.; providing legislative
   13         intent; authorizing tribal business entities to
   14         purchase stamped and untaxed cigarettes from agents
   15         and wholesale dealers; authorizing certain tribal
   16         smoke shops to purchase tax-exempt cigarettes from
   17         tribal business entities and to sell such cigarettes
   18         at retail on an Indian reservation to tribal members
   19         and the public; requiring specified entities to
   20         maintain documentation relating to the purchase or
   21         sale of tax-exempt cigarettes; prohibiting the
   22         purchase of more than a specified number of cartons of
   23         tax-exempt cigarettes within a specified period;
   24         providing a penalty; creating s. 210.222, F.S.;
   25         requiring a certificate of authority to own or operate
   26         a tribal smoke shop; requiring tribal business
   27         entities to adopt related requirements; requiring
   28         tribal business entities that purchase tax-exempt
   29         cigarettes to a create a fund for a specified purpose;
   30         requiring such tribal business entities to use certain
   31         profits for a specified purpose; authorizing the
   32         division to inspect the accounts and the use of
   33         certain funds derived from the sale of tax-exempt
   34         cigarettes; providing an effective date.
   35  
   36         WHEREAS, in April 1977, the first smoke shop operated by
   37  the Seminole Indian Tribe of Florida opened, selling tax-exempt
   38  cigarettes to the public, and
   39         WHEREAS, authorized by the laws of this state, the Seminole
   40  Indian Tribe of Florida operated smoke shops selling tax-exempt
   41  cigarettes to the public from 1979 until 2009, and
   42         WHEREAS, in 2009, the Legislature enacted chapter 2009-79,
   43  Laws of Florida, effectively revoking the Seminole Indian Tribe
   44  of Florida’s authority to sell tax-exempt cigarettes to the
   45  public, and
   46         WHEREAS, chapter 2009-79, Laws of Florida, preserved a
   47  portion of the Seminole Indian Tribe of Florida’s tax-exempt
   48  cigarette revenues by allowing the sale of tax-exempt cigarettes
   49  to tribal members, and
   50         WHEREAS, current law creates a system whereby the Seminole
   51  Indian Tribe of Florida is given excise tax and surcharge
   52  exemption coupons based on the probable demand for cigarettes,
   53  with probable demand defined as five packages of cigarettes per
   54  day for every man, woman, and child member of the tribe, and the
   55  coupons are used to buy tax-exempt cigarettes from a wholesale
   56  dealer who submits such coupons to the division for a refund of
   57  taxes paid by the wholesale dealer, and
   58         WHEREAS, the Seminole Indian Tribe of Florida desires to
   59  resume the sale of tax-exempt cigarettes to the public and to
   60  use the revenues generated from such sales for tribal health
   61  care services, which include, but are not limited to, the
   62  purchase of diagnostic and other medical equipment, the hiring
   63  and retention of medical personnel, the improvement of medical
   64  recordkeeping and the sharing of medical records between the
   65  various reservations, the use of telehealth, and the creation
   66  and expansion of medical facilities to increase the quality of
   67  health care for all tribal members, especially those members on
   68  remote reservations that are currently underserved, NOW,
   69  THEREFORE,
   70  
   71  Be It Enacted by the Legislature of the State of Florida:
   72  
   73         Section 1. Subsections (23), (24), and (25) are added to
   74  section 210.01, Florida Statutes, to read:
   75         210.01 Definitions.—When used in this part the following
   76  words shall have the meaning herein indicated:
   77         (23)“Tax-exempt cigarettes” means cigarettes exempt from
   78  the cigarette excise tax under s. 210.02 and the cigarette
   79  surcharge under s. 210.011.
   80         (24)“Tribal business entity” means a federally chartered
   81  corporation charged with the duty of creating, expanding, and
   82  developing business enterprises for the economic betterment of a
   83  recognized Indian tribe.
   84         (25)“Tribal smoke shop” means an entity located on an
   85  Indian reservation which is authorized to sell tax-exempt
   86  cigarettes to members of an Indian tribe recognized by this
   87  state and to the public.
   88         Section 2. Subsection (5) of section 210.05, Florida
   89  Statutes, is amended, and subsection (6) is added to that
   90  section, to read:
   91         210.05 Preparation and sale of stamps; discount.—
   92         (5) An agent or wholesale dealer may sell stamped and
   93  untaxed cigarettes to a tribal business entity for retail sale
   94  on an Indian reservation. With respect to reporting and
   95  stamping, the agent or wholesale dealer shall treat such
   96  cigarettes and the sale thereof in the same manner as other
   97  sales under this part. The agent or wholesale dealer may not
   98  collect from the tribal business entity the cigarette excise tax
   99  imposed under s. 210.02 or the cigarette surcharge imposed under
  100  s. 210.011. The tribal business entity is responsible to the
  101  agent or wholesale dealer for the services and expenses incurred
  102  in affixing the stamps and accounting therefor Cigarettes sold
  103  to the Seminole Indian Tribe of Florida shall be administered as
  104  provided in s. 210.1801.
  105         (6)An agent or wholesale dealer may file a claim for a
  106  refund from the division for any cigarette tax or surcharge paid
  107  on cigarettes that the wholesale dealer sells to a tribal
  108  business entity pursuant to this section. The division may
  109  reimburse the agent or wholesale dealer for cigarette taxes or
  110  surcharges paid on cigarettes sold to a tribal business entity
  111  under this section.
  112         Section 3. Section 210.1801, Florida Statutes, is repealed.
  113         Section 4. Section 210.221, Florida Statutes, is created to
  114  read:
  115         210.221Tax-exempt cigarettes sold on an Indian
  116  reservation.—
  117         (1)It is the intent of the Legislature that:
  118         (a)The retail sale of tax-exempt cigarettes be permitted
  119  on Indian reservations by tribal smoke shops authorized to
  120  operate under s. 210.222.
  121         (b)Members of an Indian tribe recognized in this state and
  122  members of the public be permitted to purchase such tax-exempt
  123  cigarettes from authorized tribal smoke shops.
  124         (c)Tax-exempt cigarettes be distributed to tribal smoke
  125  shops by tribal business entities as prescribed in this section.
  126         (2)Notwithstanding any other law, a tribal business entity
  127  may purchase stamped and untaxed cigarettes from agents or
  128  wholesale dealers for retail sale in accordance with s.
  129  210.05(5) and (6). A tribal business entity may sell or
  130  distribute such tax-exempt cigarettes only to a tribal smoke
  131  shop authorized to operate under s. 210.222.
  132         (3)An authorized tribal smoke shop may:
  133         (a) Purchase tax-exempt cigarettes from a tribal business
  134  entity even though the cigarettes have an affixed cigarette tax
  135  and-surcharge stamp.
  136         (b)Sell tax-exempt cigarettes on an Indian reservation
  137  only.
  138         (c)Sell tax-exempt cigarettes at retail to members of an
  139  Indian tribe recognized in this state and to the public.
  140         (4)Each agent, wholesale dealer, or tribal business entity
  141  that purchases or sells tax-exempt cigarettes shall keep records
  142  of each such transaction and shall submit appropriate
  143  documentation to the division. Documentation must contain the
  144  identity of the parties involved in the transaction, the
  145  identity and quantity of the product sold or purchased, and any
  146  other information that the division may deem appropriate.
  147         (5)A tribal member or member of the public who purchases
  148  more than three cartons of tax-exempt cigarettes from a tribal
  149  smoke shop within a 7-day period commits a misdemeanor of the
  150  second degree, punishable as provided in s. 775.082 or s.
  151  775.083.
  152         Section 5. Section 210.222, Florida Statutes, is created to
  153  read:
  154         210.222Tribal smoke shop requirements.—
  155         (1)A person may not own or operate a tribal smoke shop
  156  without being issued a certificate of authority to operate by a
  157  tribal business entity. A tribal business entity may charge a
  158  tribal smoke shop owner or operator a reasonable fee for the
  159  certificate of authority.
  160         (2)Each tribal business entity shall adopt written
  161  procedures and criteria for authorizing tribal smoke shops to
  162  sell tax-exempt cigarettes. Such requirements:
  163         (a)May authorize tribal smoke shops to be individually
  164  owned and operated, or owned by the tribal business entity and
  165  operated by an authorized tribal smoke shop.
  166         (b)Must provide for monitoring and enforcing the purchase
  167  limit of three cartons within a 7-day period as specified in s.
  168  210.221(5). In order to monitor the three-carton limit,
  169  authorized tribal smoke shops must, at a minimum:
  170         1.Use surveillance cameras that capture images or a video
  171  of each customer who purchases tax-exempt cigarettes and his or
  172  her car and license plate.
  173         2.Record the driver license number of each customer who
  174  purchases tax-exempt cigarettes.
  175         3.Display a large sign inside the store which is clearly
  176  legible and conspicuous to customers and which gives notice of
  177  the 3-carton limit and warns customers of the surveillance
  178  cameras in use.
  179         4.Report at least monthly to the tribal business entity
  180  any violation or attempted violation of s. 210.221(5).
  181         (3)Each tribal business entity shall adopt written
  182  requirements establishing procedures for imposing fines against,
  183  and for suspending and revoking the certificate of authority of,
  184  a tribal smoke shop that violates or fails to adhere to the
  185  requirements in 210.221 relating to the retail sale of tax
  186  exempt cigarettes adopted by the tribal business entity.
  187         (4)Each tribal business entity that purchases stamped but
  188  untaxed cigarettes from an agent or wholesaler pursuant to s.
  189  210.05(5), must create a fund dedicated exclusively to funding
  190  tribal health care. Three-fifths of all fees collected by a
  191  tribal business entity shall be deposited into the fund. The
  192  fund shall be used to support medical clinics, to expand and
  193  create medical facilities, to purchase diagnostic equipment, to
  194  create systems that will improve the sharing of medical records
  195  by and between the various reservations, and to staff medical
  196  facilities that maintain a primary emphasis on the needs of
  197  tribal members residing on remote reservations.
  198         (5)Each tribal business entity that purchases stamped and
  199  untaxed cigarettes from an agent or wholesaler pursuant to s.
  200  210.05(5) must use all profits derived from the sale of tax
  201  exempt cigarettes to fund law enforcement, fire prevention,
  202  tribal housing, and youth recreation.
  203         (6)Any accounts established by a tribal business entity
  204  containing funds derived from tax-exempt cigarette sales,
  205  including, but not limited to, an account established pursuant
  206  to subsection (4) or subsection (5), and the use of such funds
  207  must be open to inspection by the division.
  208         Section 6. This act shall take effect July 1, 2014.