HB 1803

CS

CHAMBER ACTION

1	The Fiscal Council recommends the following:
2
3	Council/Committee Substitute
4	Remove the entire bill and insert:
5	A bill to be entitled
6	An act relating to the taxation of alcoholic beverages;
7	amending s. 561.121, F.S.; deleting provisions providing
8	for certain annual distributions of funds for specified
9	purposes; deleting provisions crediting specified taxes on
10	alcoholic beverages to accounts funding substance abuse
11	programs for children and adolescents; deleting a
12	provision providing for payment and credit of alcoholic
13	beverage surcharge funds to the General Revenue Fund to
14	conform; terminating the Children and Adolescents
15	Substance Abuse Trust Fund within the Department of
16	Children and Family Services; providing for disposition of
17	balances in and revenues of such trust fund; amending s.
18	215.20, F.S.; conforming provisions to the repeal of the
19	trust fund; amending s. 561.501, F.S.; deleting a
20	provision imposing a surcharge on alcoholic beverages sold
21	for consumption on the premises; amending s. 561.025,
22	F.S., to conform; repealing 561.501, F.S., relating to the
23	collection of the alcoholic beverage surcharge; providing
24	effective dates.
25
26	Be It Enacted by the Legislature of the State of Florida:
27
28	Section 1.  Subsections (1) and (4) of section 561.121,
29	Florida Statutes, are amended to read:
30	561.121  Deposit of revenue.--
31	(1)  All state funds collected pursuant to ss. 563.05,
32	564.06, and 565.12 shall be paid into the State Treasury and
33	disbursed in the following manner:
34	(a)1.  Two percent of monthly collections of the excise
35	taxes on alcoholic beverages established in ss. 563.05, 564.06,
36	and 565.12 shall be deposited into the Alcoholic Beverage and
37	Tobacco Trust Fund to meet the division's appropriation for the
38	state fiscal year.
39	2.  Beginning July 1, 2004, there is annually distributed
40	$15 million to the Grants and Donations Trust Fund within the
41	Department of Elderly Affairs, and these funds are annually
42	appropriated to support a contract with the Johnnie B. Byrd,
43	Sr., Alzheimer's Center and Research Institute at the University
44	of South Florida for the purposes of conducting research,
45	developing and operating integrated data projects, and providing
46	assistance to memory disorder clinics as established in s.
47	430.502.
48	3.  Beginning July 1, 2004, there is annually distributed
49	$6 million to the Biomedical Research Trust Fund within the
50	Department of Health, and these funds are annually appropriated
51	to the James and Esther King Biomedical Research Program. From
52	these funds, up to $250,000 shall be available annually for the
53	operating costs of the Florida Center for Universal Research to
54	Eradicate Disease.
55	4.  Beginning July 1, 2004, there is annually distributed
56	$9 million to be paid by warrant drawn by the Chief Financial
57	Officer upon the State Treasury to Florida State University for
58	the School of Chiropractic Medicine. Notwithstanding the
59	provisions of chapter 216, until the School of Chiropractic
60	Medicine is completely staffed and fully operational, these
61	funds may be used for any purpose by the university.
62	(b)  The remainder of collection shall be credited to the
63	General Revenue Fund.
64	(4)(a)  State funds collected pursuant to s. 561.501 shall
65	be paid into the State Treasury and credited to the General
66	Revenue Fund. following accounts:
67	1.  Twenty-seven and two-tenths percent of the surcharge on
68	the sale of alcoholic beverages for consumption on premises
69	shall be transferred to the Children and Adolescents Substance
70	Abuse Trust Fund, which shall remain with the Department of
71	Children and Family Services for the purpose of funding programs
72	directed at reducing and eliminating substance abuse problems
73	among children and adolescents.
74	2.  The remainder of collections shall be credited to the
75	General Revenue Fund.
76	(b)  For the 2004-2005 state fiscal year only, and
77	notwithstanding the provisions of subparagraph (a)1., moneys in
78	the Children and Adolescents Substance Abuse Trust Fund may also
79	be used for the purpose of funding programs directed at reducing
80	and eliminating substance abuse problems among adults. This
81	paragraph expires July 1, 2005.
82	Section 2.  Effective July 1, 2006, subsection (4) of
83	section 561.121, Florida Statutes, as amended by this act, is
84	amended to read:
85	561.121  Deposit of revenue.--
86	(4)  State funds collected pursuant to s. 561.501 shall be
87	paid into the State Treasury and credited to the General Revenue
88	Fund.
89	Section 3.  (1)  The Children and Adolescents Substance
90	Abuse Trust Fund within the Department of Children and Family
91	Services is terminated. The current balance remaining in the
92	trust fund shall be transferred to the Operations and
93	Maintenance Trust Fund in the department.
94	(2)  The Department of Children and Family Services shall
95	pay any outstanding debts and obligations of the terminated fund
96	as soon as practicable, and the Chief Financial Officer shall
97	close out and remove the terminated fund from the various state
98	accounting systems using generally accepted accounting
99	principles concerning warrants outstanding, assets, and
100	liabilities.
101	Section 4.  Paragraph (e) of subsection (4) of section
102	215.20, Florida Statutes, is amended to read:
103	215.20  Certain income and certain trust funds to
104	contribute to the General Revenue Fund.--
105	(4)  The income of a revenue nature deposited in the
106	following described trust funds, by whatever name designated, is
107	that from which the appropriations authorized by subsection (3)
108	shall be made:
109	(e)  Within the Department of Children and Family Services:
110	1.  The Administrative Trust Fund.
111	2.  The Child Welfare Training Trust Fund.
112	3.  The Children and Adolescents Substance Abuse Trust
113	Fund.
114	3.4.  The Domestic Violence Trust Fund.
115	4.5.  The Grants and Donations Trust Fund.
116	5.6.  The Operations and Maintenance Trust Fund.
117
118	The enumeration of the foregoing moneys or trust funds shall not
119	prohibit the applicability thereto of s. 215.24 should the
120	Governor determine that for the reasons mentioned in s. 215.24
121	the money or trust funds should be exempt herefrom, as it is the
122	purpose of this law to exempt income from its force and effect
123	when, by the operation of this law, federal matching funds or
124	contributions or private grants to any trust fund would be lost
125	to the state.
126	Section 5.  Section 561.501, Florida Statutes, is amended
127	to read:
128	561.501  Surcharge on sale of alcoholic beverages for
129	consumption on the premises; penalty.--
130	(1)  Notwithstanding s. 561.50 or any other provision of
131	the Beverage Law, a surcharge of 3.34 cents is imposed upon each
132	ounce of liquor and each 4 ounces of wine, a surcharge of 2
133	cents is imposed on each 12 ounces of cider, and a surcharge of
134	1.34 cents is imposed on each 12 ounces of beer sold at retail
135	for consumption on premises licensed by the division as an
136	alcoholic beverage vendor. However, the surcharges imposed under
137	this subsection need not be paid upon such beverages when they
138	are sold by an organization that is licensed by the division
139	under s. 561.422 or s. 565.02(4) as an alcoholic beverage vendor
140	and that is determined by the Internal Revenue Service to be
141	currently exempt from federal income tax under s. 501(c)(3),
142	(4), (5), (6), (7), (8), or (19) of the Internal Revenue Code of
143	1986, as amended.
144	(1)(2)  The vendor shall report and remit payments to the
145	division each month by the 15th of the month following the month
146	in which the surcharges are imposed. For purposes of
147	compensating the retailer for the keeping of prescribed records
148	and the proper accounting and remitting of surcharges imposed
149	under this section, the retailer shall be allowed to deduct from
150	the payment due the state 1 percent of the amount of the
151	surcharge due. Retail records shall be kept on the quantities of
152	all liquor, wine, and beer purchased, inventories, and sales.
153	However, a collection allowance is not allowed on any
154	collections that are not timely remitted. If by the 20th of the
155	month following the month in which the surcharges are imposed,
156	reports and remittances are not made, the division shall assess
157	a late penalty in the amount of 10 percent of the amount due per
158	month for each 30 days, or fraction thereof, after the 20th of
159	the month, not to exceed a total penalty of 50 percent, in the
160	aggregate, of any unpaid surcharges. The division shall
161	establish, by rule, the required reporting, collection, and
162	accounting procedures. Records must be maintained for 3 years.
163	Failure to accurately and timely remit surcharges imposed under
164	this section is a violation of the Beverage Law.
165	(2)(3)(a)  The division may compromise a taxpayer's
166	liability for the surcharge imposed by this section upon the
167	grounds of doubt as to liability for or collectibility of such
168	tax. A taxpayer's liability for penalties as prescribed by this
169	section may be settled or compromised if the division finds that
170	the noncompliance is due to reasonable cause and not to willful
171	negligence, willful neglect, or fraud. The division shall
172	maintain records of all compromises, and the records must state
173	the basis for the compromise.
174	(b)  The division may enter into agreements for scheduling
175	payments of taxes, interest, and penalties prescribed in this
176	section.
177	(c)  The division shall establish by rule guidelines and
178	procedures for administering this section.
179	(3)(4)  If any vendor fails to remit the surcharge, or any
180	portion thereof, by the 20th of the month following the month in
181	which the surcharges are imposed, there shall be added to the
182	amount due interest at the rate of 1 percent per month of the
183	amount due from the date due until paid. Interest on the
184	delinquent tax shall be calculated beginning on the 21st day of
185	the month following the month for which the surcharge is due.
186	(4)(5)  All penalties and interest imposed by this section
187	are payable to and collectible by the division in the same
188	manner as if they were a part of the tax imposed. The division
189	may settle or compromise any such interest or penalty under
190	paragraph (2)(3)(a).
191	Section 6.  Effective July 1, 2006, section 561.501,
192	Florida Statutes, as amended by this act, is repealed.
193	Section 7.  Effective July 1, 2006, section 561.025,
194	Florida Statutes, is amended to read:
195	561.025  Alcoholic Beverage and Tobacco Trust Fund.--There
196	is created within the State Treasury the Alcoholic Beverage and
197	Tobacco Trust Fund. All funds collected by the division under
198	ss. 210.15, 210.40, or under s. 569.003 and the Beverage Law
199	with the exception of state funds collected pursuant to ss.
200	561.501, 563.05, 564.06, and 565.12 shall be deposited in the
201	State Treasury to the credit of the trust fund, notwithstanding
202	any other provision of law to the contrary. Moneys deposited to
203	the credit of the trust fund shall be used to operate the
204	division and to provide a proportionate share of the operation
205	of the office of the secretary and the Division of
206	Administration of the Department of Business and Professional
207	Regulation; except that:
208	(1)  The revenue transfer provisions of ss. 561.32 and
209	561.342(1) and (2) shall continue in full force and effect, and
210	the division shall cause such revenue to be returned to the
211	municipality or county in the manner provided for in s. 561.32
212	or s. 561.342(1) and (2); and
213	(2)  Ten percent of the revenues derived from retail
214	tobacco products dealer permit fees collected under s. 569.003
215	shall be transferred to the Department of Education to provide
216	for teacher training and for research and evaluation to reduce
217	and prevent the use of tobacco products by children.
218	Section 8.  Except as otherwise expressly provided in this
219	act, this act shall take effect July 1, 2005.

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