CODING: Words stricken are deletions; words underlined are additions.





                                                   HOUSE AMENDMENT

                                  Bill No. CS/CS/SB 1566, 1st Eng.

    Amendment No.     (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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 4                                                                

 5                                           ORIGINAL STAMP BELOW

 6

 7

 8

 9

10                                                                

11  Representative(s) Albright and Brown offered the following:

12

13         Amendment (with title amendment) 

14         On page 18, line 11,

15

16  insert:

17         Section 1.  (1)  Section 210.155, Florida Statutes, is

18  created to read:

19         210.155  Registration as primary source of supply.--

20         (1)  DEFINITION.--As used in this section, "primary

21  source of supply" means the cigarette manufacturer of the

22  brand, except that, for a cigarette manufacturer outside of

23  the United States, the primary source of supply may be the

24  exclusive agent of the manufacturer of the brand, who, if the

25  brand cannot be secured directly from the manufacturer by an

26  American wholesale dealer, is the source closest to the

27  manufacturer in the channel of commerce from whom the brand

28  can be secured by an American permitholder.

29         (2)  TAX CONTROL REGISTRATION REQUIRED.--For purposes

30  of tax revenue control, beginning on the effective date of

31  this act, no person, firm, corporation, or other entity that

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                                                   HOUSE AMENDMENT

                                  Bill No. CS/CS/SB 1566, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  is a primary source of supply may sell, offer for sale, accept

 2  orders for sale, ship, or cause to be shipped into this state

 3  any cigarettes to any wholesale dealer within the state

 4  without having first registered as a primary source of supply

 5  on forms provided by, and in such manner as prescribed by, the

 6  division. The registration information shall include a listing

 7  of the complete product line of the manufacturer which is

 8  offered in Florida and the domestic plants from which it is

 9  shipped, and shall be updated and submitted monthly, together

10  with a report of all shipments into the state, on forms and in

11  such manner prescribed by the division in rule.  The division

12  may adopt rules to promulgate forms and procedures to

13  implement s. 210.55(2).

14         (3)  CERTAIN INTERSTATE AND FOREIGN SHIPMENTS

15  PROHIBITED; LIMITATION ON POSSESSION.--Beginning on the

16  effective date of this act, no holder of a wholesale dealer

17  permit may ship or cause to be shipped into this state, or

18  accept delivery of, from another state or a foreign country,

19  any cigarettes, except directly from a primary source of

20  supply, registered as required by subsection (2), for the

21  brand of cigarettes being shipped, except as provided in 26

22  U.S.C. ss. 5704(d) and 5754 for reexport through a bonded

23  warehouse or for return to the manufacturer.

24         (4)  AFFIXING STAMPS; LABELING REQUIREMENTS.--No stamp,

25  decal, or other cover, including a tax stamp, may be affixed

26  to or made upon any package of cigarettes that is to be sold

27  within this state, except by the holder of an interim

28  wholesale dealer permit, unless that package complies with all

29  requirements of the Federal Cigarette Labeling and Advertising

30  Act for the placement of labels, warnings, and other

31  information. The placement of a tax stamp on any cigarette

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                                                   HOUSE AMENDMENT

                                  Bill No. CS/CS/SB 1566, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  package does not authorize or affect acts which are otherwise

 2  prohibited by this part.

 3         (5)  VIOLATION; SEIZURE; FORFEITURE.--Any cigarettes in

 4  the possession of a wholesale dealer in violation of this

 5  section shall be seized by the division and subject to

 6  forfeiture, and the permit of the wholesale dealer shall be

 7  subject to suspension for the first such offense and to

 8  revocation for any subsequent offense. Any cigarettes in the

 9  possession of a retail dealer on or after March 1, 2000, in

10  violation of this section shall be seized by the division and

11  subject to forfeiture, and the retail tobacco products dealer

12  permit of the retailer shall be subject to suspension for the

13  first such violation and revocation for any subsequent

14  violation. The holder of an interim permit may possess

15  cigarettes brought into this state prior to January 1, 2000,

16  for a period of 30 days after the expiration of such permit if

17  said cigarettes are not affixed with stamps issued by this

18  state.

19         (2)  Subsection (3) of s. 210.155, Florida Statutes, as

20  created by this act, shall not apply to the holder of an

21  interim permit pursuant to s. 210.15(1)(b), Florida Statutes,

22  until January 1, 2000.

23         Section 2.  Paragraphs (a), (b), (e), and (f) of

24  subsection (1) and subsections (3) and (4) of section 210.15,

25  Florida Statutes, are amended to read:

26         210.15  Permits.--

27         (1)(a)  Every person, firm, or corporation desiring to

28  deal in cigarettes as a distributing agent, wholesale dealer,

29  or exporter within this state shall file an application for a

30  cigarette permit for each place of business with the Division

31  of Alcoholic Beverages and Tobacco.  Every application for a

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                                                   HOUSE AMENDMENT

                                  Bill No. CS/CS/SB 1566, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  cigarette permit shall be made on forms furnished by the

 2  division and shall set forth the name under which the

 3  applicant transacts or intends to transact business, the

 4  location of the applicant's place of business within the

 5  state, and such other information as the division may require.

 6  If the applicant has or intends to have more than one place of

 7  business dealing in cigarettes within this state, the

 8  application shall state the location of each place of

 9  business.  If the applicant is an association, the application

10  shall set forth the names and addresses of the persons

11  constituting the association, and if a corporation, the names

12  and addresses of the principal officers thereof and any other

13  information prescribed by the division for the purpose of

14  identification.  The application shall be signed and verified

15  by oath or affirmation by the owner, if a natural person, and

16  in the case of an association or partnership, any partner

17  members or partners thereof, and in the case of a corporation,

18  by an executive officer thereof or by any person specifically

19  authorized by the corporation to sign the application, to

20  which shall be attached the written evidence of this

21  authority.  The cigarette permit for a distributing agent

22  shall be issued annually for which an annual fee of $5 shall

23  be charged.  No permit for a distributing agent or wholesale

24  dealer shall be issued prior to receipt of an affirmation, on

25  a form approved by the division, from each manufacturer whose

26  cigarettes the distributing agent or wholesale dealer intends

27  to stamp or distribute.  This affirmation shall evidence the

28  manufacturer's intent to provide cigarettes to the applicant

29  and shall be signed and sworn to by an officer of the

30  corporation or principal of the partnership or sole

31  proprietorship manufacturing the cigarettes.  In the case of

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                                                   HOUSE AMENDMENT

                                  Bill No. CS/CS/SB 1566, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  cigarettes manufactured outside of the United States, the

 2  affirmation form may be executed by the primary source of

 3  supply registered with the division pursuant to s. 210.155.

 4         (b)  The holder of any duly issued, annual permit for a

 5  distributing agent shall be entitled to a renewal of his or

 6  her annual permit from year to year as a matter of course, on

 7  or before July 1 unless an alternative renewal date is

 8  established by rule, upon making application to the division,

 9  and upon payment of this annual permit fee, and receipt by the

10  division of newly executed manufacturer's affirmation forms as

11  required by paragraph (a). The holder of a permit which was

12  issued prior to July 1, 1997, and continuously kept in effect

13  since issuance through March 1, 1999, shall be issued an

14  interim permit which is valid until March 1, 2000, without a

15  manufacturer's affirmation form, if such holder is otherwise

16  in compliance with this section.

17         (e)  Prior to an application for a distributing agent,

18  wholesale dealer, or exporter permit being approved, the

19  applicant shall file a set of fingerprints when required by

20  the division on forms provided by the division. The applicant

21  shall also file a set of fingerprints for any person or

22  persons interested directly or indirectly with the applicant

23  in the business for which the permit is being sought, when so

24  required by the division.  If the applicant or any person

25  interested with the applicant, either directly or indirectly,

26  in the business for which the permit is sought shall be such a

27  person as is within the definition of persons to whom a

28  distributing agent, wholesale dealer, or exporter permit shall

29  be denied, then the application may be denied by the division.

30  If the applicant is a partnership, all members of the

31  partnership are required to file said fingerprints, or if a

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                                                   HOUSE AMENDMENT

                                  Bill No. CS/CS/SB 1566, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  corporation, all principal officers of the corporation are

 2  required to file said fingerprints, when required by the

 3  division.  The cigarette permit for a wholesale dealer or

 4  exporter shall be originally issued at a fee of $100, which

 5  sum is to cover the cost of the investigation required before

 6  issuing such permit.

 7         (f)  The cigarette permit for a wholesale dealer or

 8  exporter shall be renewed from year to year as a matter of

 9  course, at an annual cost of $100, on or before July 1 unless

10  an alternative renewal date is established by rule, upon

11  making application to the division, and upon payment of the

12  annual renewal fee, and receipt by the division of newly

13  executed manufacturer's affirmation forms as required by

14  paragraph (a). The holder of a permit which was issued prior

15  to July 1, 1997, and continuously kept in effect since

16  issuance through March 1, 1999, shall be issued an interim

17  permit which is valid until March 1, 2000, without a

18  manufacturer's affirmation form, if such holder is otherwise

19  in compliance with this section.

20         (3)  Upon approval of the application, the division

21  shall grant and issue to each applicant a cigarette permit for

22  each place of business set forth in the application.

23  Cigarette permits shall not be assignable and shall be valid

24  only for the persons in whose names issued and for the

25  transaction of business at the places designated therein and

26  shall at all times be conspicuously displayed at the places

27  for which issued.

28         (4)  All permits of distributing agents, wholesale

29  dealers, or exporters shall remain in force and effect until

30  July 1 following their issuance unless an alternative renewal

31  date is established, or until suspended or revoked for cause

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                                                   HOUSE AMENDMENT

                                  Bill No. CS/CS/SB 1566, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  by the division, or surrendered by the permitholder.

 2         Section 3.  Section 210.151, Florida Statutes, is

 3  amended to read:

 4         210.151  Initial temporary cigarette and other tobacco

 5  products permits.--When a person has filed a completed

 6  application which does not on its face disclose any reason for

 7  denying a cigarette permit under s. 210.15, or other tobacco

 8  products permit under s. 210.40, the Division of Alcoholic

 9  Beverages and Tobacco of the Department of Business and

10  Professional Regulation shall issue a temporary initial permit

11  of the same type and series for which the application has been

12  submitted, which is valid for all purposes under this part

13  chapter. The application for a temporary cigarette permit must

14  be accompanied by the manufacturer's affirmation forms

15  required by s. 210.15(1)(a) prior to issuance of a temporary

16  permit.

17         (1)  A temporary initial permit shall be valid for up

18  to 90 days and may be extended by the division for up to an

19  additional 90 days for good cause. The division may at any

20  time during such period grant or deny the permit applied for,

21  notwithstanding s. 120.60.

22         (1)(2)  A temporary initial permit expires on and may

23  not be continued or extended beyond the date the division

24  denies the permit applied for; or beyond 14 days after the

25  date the division approves the permit applied for; or beyond

26  the date the applicant pays the permit fee and the division

27  issues the permit applied for; or beyond the date the

28  temporary permit otherwise expires by law, whichever date

29  occurs first.

30         (2)(3)  Each applicant seeking a temporary initial

31  cigarette permit shall pay to the division for such permit a

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                                                   HOUSE AMENDMENT

                                  Bill No. CS/CS/SB 1566, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  fee of $100. Each applicant seeking a temporary initial permit

 2  for other tobacco products shall pay to the division for such

 3  permit a fee of $25.

 4         (3)(4)  Any fee or penalty collected under the

 5  provisions of this act shall be deposited into the Alcoholic

 6  Beverage and Tobacco Trust Fund.

 7         Section 4.  Section 210.405, Florida Statutes, is

 8  amended to read:

 9         210.405  Initial temporary cigarette and other tobacco

10  products permits.--When a person has filed a completed

11  application which does not on its face disclose any reason for

12  denying a cigarette permit under s. 210.15, or other tobacco

13  products permit under s. 210.40, the Division of Alcoholic

14  Beverages and Tobacco of the Department of Business and

15  Professional Regulation shall issue a temporary initial permit

16  of the same type and series for which the application has been

17  submitted, which is valid for all purposes under this chapter.

18         (1)  A temporary initial permit shall be valid for up

19  to 90 days and may be extended by the division for up to an

20  additional 90 days for good cause. The division may at any

21  time during such period grant or deny the permit applied for,

22  notwithstanding s. 120.60.

23         (1)(2)  A temporary initial permit expires on and may

24  not be continued or extended beyond the date the division

25  denies the permit applied for; or beyond 14 days after the

26  date the division approves the permit applied for; or beyond

27  the date the applicant pays the permit fee and the division

28  issues the permit applied for; or beyond the date the

29  temporary permit otherwise expires by law, whichever date

30  occurs first.

31         (2)(3)  Each applicant seeking a temporary initial

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                                                   HOUSE AMENDMENT

                                  Bill No. CS/CS/SB 1566, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  cigarette permit shall pay to the division for such permit a

 2  fee of $100. Each applicant seeking a temporary initial permit

 3  for other tobacco products shall pay to the division for such

 4  permit a fee of $25.

 5         (3)(4)  Any fee or penalty collected under the

 6  provisions of this act shall be deposited into the Alcoholic

 7  Beverage and Tobacco Trust Fund.

 8         Section 5.  Section 210.16, Florida Statutes, is

 9  amended to read:

10         210.16  Revocation or suspension of permit or

11  registration.--

12         (1)  The Division of Alcoholic Beverages and Tobacco is

13  given full power and authority to revoke the permit of any

14  wholesale dealer receiving a permit to engage in business

15  under this part for violation of any of the provisions of this

16  part or the registration of any primary source of supply for

17  violation of s. 210.155(2).

18         (2)  The division may suspend for a reasonable period

19  of time, in its discretion, the permit permits of any

20  wholesale dealer dealers issued under the provisions of this

21  part or the registration of any primary source of supply for

22  the same causes and under the same limitations as is

23  authorized hereunder to revoke the permit permits of such

24  wholesale dealer or the registration of such primary source of

25  supply dealers.

26         (3)  No wholesale dealer whose permit for any place of

27  business has been revoked shall engage in business under this

28  part at such place of business after such revocation until a

29  new permit is issued.  No wholesale dealer whose permit for

30  any place of business has been revoked shall be permitted to

31  have said permit renewed, or to obtain an additional cigarette

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                                                   HOUSE AMENDMENT

                                  Bill No. CS/CS/SB 1566, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  permit for any other place of business, for a period of 6

 2  months after the date such revocation becomes final. No

 3  primary source of supply whose registration has been revoked

 4  shall be permitted to have said registration renewed for a

 5  period of 6 months after the date such revocation becomes

 6  final.

 7         (4)  In lieu of the suspension or revocation of permits

 8  or registrations, the division may impose civil penalties

 9  against holders of permits for violations of this part or

10  rules and regulations relating thereto, or against holders of

11  registrations for violations of s. 210.155(2) or rules adopted

12  pursuant thereto. No civil penalty so imposed shall exceed

13  $1,000 for each offense, except for violations of s. 210.155,

14  and all amounts collected shall be deposited with the State

15  Treasurer to the credit of the General Revenue Fund. Civil

16  penalties for violations of s. 210.155 by a retailer shall not

17  exceed $1,000 for the first violation and $5,000 for any

18  subsequent violation. Civil penalties for violations of s.

19  210.155 by the holder of a wholesale permit shall not exceed

20  $10,000 for the first violation and $25,000 for any subsequent

21  violation. Civil penalties for violations of s. 210.155(2) by

22  the holder of a registration as a primary source of supply

23  shall not exceed $10,000 for the first violation and $25,000

24  for any subsequent violation. A fine for violation of s.

25  210.155 shall count as a violation for purposes of s.

26  210.155(5). If the holder of the permit or registration fails

27  to pay the civil penalty, his or her permit or registration

28  shall be suspended for such period of time as the division may

29  specify.

30

31

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                                                   HOUSE AMENDMENT

                                  Bill No. CS/CS/SB 1566, 1st Eng.

    Amendment No.     (for drafter's use only)





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

 2  And the title is amended as follows:

 3         On page 1, line 2,

 4

 5  after the semicolon insert:

 6         creating s. 210.155, F.S.; defining "primary

 7         source of supply"; requiring registration of

 8         entities acting as a primary source of supply;

 9         prohibiting wholesale dealers from shipping or

10         accepting delivery of cigarettes from outside

11         the state other than directly from a primary

12         source of supply; providing a limitation on the

13         possession of cigarettes with certain labels;

14         providing that no stamp or other cover may be

15         affixed to a cigarette package that does not

16         meet specified labeling requirements; providing

17         for seizure and forfeiture of cigarettes in

18         violation, and for suspension and revocation of

19         permits; providing application to holders of

20         interim permits; amending s. 210.15, F.S.;

21         revising application requirements for permits

22         for distributing agents, wholesale dealers, and

23         exporters, and provisions relating to renewal

24         thereof; requiring submission of manufacturers'

25         affirmation forms by distributing agents and

26         wholesale dealers; authorizing issuance of

27         interim permits without such affirmation to

28         certain permitholders; amending ss. 210.151 and

29         210.405, F.S., relating to temporary initial

30         cigarette and other tobacco products permits;

31         conforming language; revising provisions

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                                                   HOUSE AMENDMENT

                                  Bill No. CS/CS/SB 1566, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         relating to expiration of such permits;

 2         specifying that manufacturers' affirmation

 3         forms must be submitted prior to issuance of a

 4         temporary cigarette permit; amending s. 210.16,

 5         F.S.; providing for revocation and suspension

 6         of registration of a primary source of supply;

 7         providing limitations on renewal of

 8         registration subsequent to revocation;

 9         providing for civil penalties in lieu of

10         revocation or suspension and amounts thereof

11         for violations of s. 210.155, F.S., by

12         retailers, holders of wholesale permits, and

13         holders of registration as a primary source of

14         supply; specifying status of such fines;

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