Florida Senate - 2009                      CS for CS for SB 1840
       
       
       
       By the Policy and Steering Committee on Ways and Means; the
       Committee on Finance and Tax; and Senators Deutch and Rich
       
       
       
       576-04580A-09                                         20091840c2
    1                        A bill to be entitled                      
    2         An act relating to protecting Florida’s health through
    3         a surcharge on tobacco products; providing a short
    4         title; amending s. 210.01, F.S.; redefining the terms
    5         “unstamped package,” “unstamped cigarettes,” and
    6         “stamp”; conforming provisions to changes made by the
    7         act; creating s. 210.011, F.S.; levying a surcharge on
    8         cigarettes equivalent to $1 per standard pack;
    9         establishing surcharge amounts for cigarettes of a
   10         nonstandard sizes and in varying quantities; providing
   11         legislative intent that the surcharge be uniform
   12         throughout the state; providing for the surcharge to
   13         be administered in the same manner as the cigarette
   14         tax imposed under s. 210.02, F.S.; requiring that
   15         revenue from the surcharge to be deposited into the
   16         Health Care Trust Fund within the Agency for Health
   17         Care Administration; amending s. 210.04, F.S., to
   18         conform; amending s. 210.18, F.S.; providing enhanced
   19         penalties for the sale or possession of any quantity
   20         of counterfeit cigarettes; creating a reward program
   21         for information concerning violations under part I of
   22         ch. 210, F.S.; amending s. 210.25, F.S.; clarifying
   23         provisions with respect to definitions; creating s.
   24         210.211, F.S.; providing definitions; levying a
   25         surcharge on tobacco products other than cigarettes;
   26         providing for the surcharge to be administered in the
   27         same manner as the tax imposed under part II of ch.
   28         210, F.S.; requiring that revenue from the surcharge
   29         be deposited into the Health Care Trust Fund within
   30         the Agency for Health Care Administration; providing
   31         that the surcharge on cigarettes and other tobacco
   32         products applies to existing inventory on the
   33         effective date of the act; requiring each
   34         manufacturer, distributor, wholesaler, and vendor to
   35         take an inventory of the cigarettes and other tobacco
   36         products in its possession on the effective date of
   37         the act; requiring that the amount of such inventory
   38         be certified to the Division of Alcoholic Beverages
   39         and Tobacco of the Department of Business and
   40         Professional Regulation by a specified date; providing
   41         that the surcharge may be paid in four equal
   42         installments; providing for penalties and interest for
   43         delinquent payments; amending s. 210.05, F.S.;
   44         conforming provisions to changes made by the act;
   45         creating s. 210.1801, F.S.; providing for the
   46         administration of Indian-stamped cigarettes and other
   47         tobacco products; providing that agents of the
   48         Division of Alcoholic Beverages and Tobacco of the
   49         Department of Business and Professional Regulation or
   50         wholesale dealers may sell stamped but untaxed
   51         cigarettes and tobacco products to the Seminole Indian
   52         Tribe of Florida and the Miccosukee Tribe of Florida
   53         Indians for retail sale to tribal members; prohibiting
   54         an agent or wholesale dealer from collecting from the
   55         purchaser certain taxes or surcharges imposed by law;
   56         requiring that cigarette and other tobacco product
   57         stamps identify the tribe, or member thereof, to which
   58         the cigarettes are sold; providing for criminal
   59         penalties; providing for a fine; requiring the
   60         division to conduct a public-awareness campaign
   61         relating to the criminal possession of Indian
   62         cigarettes or Indian tobacco products by nontribal
   63         members; providing for the content of the notice
   64         required by law; requiring law enforcement agencies to
   65         report the seizure of Indian cigarettes or Indian
   66         tobacco products by nontribal members; providing for
   67         an exemption applicable to signatories of an approved
   68         compact that provides for revenue sharing between the
   69         tribe and the state; providing for an appropriation;
   70         providing an effective date.
   71  
   72         WHEREAS, the United States Surgeon General has found that
   73  smoking causes lung cancer, heart disease, and emphysema, and
   74         WHEREAS, the United States Surgeon General has found that
   75  smoking by pregnant women may result in fetal injury, premature
   76  birth, and low birth weight, and
   77         WHEREAS, the United States Surgeon General has found that
   78  cigar smoking can cause cancers of the mouth and throat, and
   79         WHEREAS, the United States Surgeon General has found that
   80  tobacco smoke increases the risk of lung cancer and heart
   81  disease, even in nonsmokers, and
   82         WHEREAS, the United States Surgeon General has found that
   83  smokeless tobacco may cause gum disease, tooth loss, and mouth
   84  cancer, and
   85         WHEREAS, the United States Surgeon General has found that
   86  secondhand smoke exposure causes respiratory symptoms in
   87  children and slows their lung growth, and causes sudden infant
   88  death syndrome (SIDS), acute respiratory infections, ear
   89  problems, and more frequent and severe asthma attacks in
   90  children, and
   91         WHEREAS, health care costs attributable to smoking-related
   92  illness in Florida have been estimated to exceed $6 billion
   93  annually, and
   94         WHEREAS, the direct Medicaid costs attributable to tobacco
   95  related illness in Florida have been estimated to exceed $1.25
   96  billion each year, and
   97         WHEREAS, the Legislature finds that the cost of tobacco
   98  usage should be recouped from those persons who engage in the
   99  use of tobacco products through a surcharge upon the retail
  100  purchase of cigarettes and other tobacco products, and
  101         WHEREAS, the Legislature finds that the imposition of such
  102  a surcharge will provide tax relief to Florida residents and
  103  businesses that heretofore have been subject to exactions to pay
  104  for the Medicaid costs attributable to the use of tobacco
  105  products, NOW, THEREFORE,
  106  
  107  Be It Enacted by the Legislature of the State of Florida:
  108  
  109         Section 1. This act may be cited as the “Protecting
  110  Florida’s Health Act.”
  111         Section 2. Subsections (18) and (19) of section 210.01,
  112  Florida Statutes, are amended to read:
  113         210.01 Definitions.—When used in this part the following
  114  words shall have the meaning herein indicated:
  115         (18) “Unstamped package” or “unstamped cigarettes” means a
  116  package on which the surcharge and tax required by this part
  117  have has not been paid, regardless of whether or not such
  118  package is stamped or marked with the indicia of any other
  119  taxing authority, or a package on which there has been affixed a
  120  counterfeit or fraudulent indicium or stamp.
  121         (19) “Stamp” or “stamps” means the indicia required to be
  122  placed on cigarette packages which that evidence payment of the
  123  surcharge on cigarettes under s. 210.011 and the tax on
  124  cigarettes under s. 210.02.
  125         Section 3. Section 210.011, Florida Statutes, is created to
  126  read:
  127         210.011Cigarette surcharge levied; collection.—
  128         (1)A surcharge, in addition to all other taxes of every
  129  kind levied by law, is levied upon the sale, receipt, purchase,
  130  possession, consumption, handling, distribution, and use of
  131  cigarettes in this state, in the following amounts, except as
  132  otherwise provided in subsections (2) and (3), for cigarettes of
  133  standard dimensions:
  134         (a)Upon all cigarettes weighing not more than 3 pounds per
  135  thousand, 5 cents on each cigarette.
  136         (b)Upon all cigarettes weighing more than 3 pounds per
  137  thousand and not more than 6 inches long, 10 cents on each
  138  cigarette.
  139         (c)Upon all cigarettes weighing more than 3 pounds per
  140  thousand and more than 6 inches long, 20 cents on each
  141  cigarette.
  142         (2)The descriptions of cigarettes contained in subsection
  143  (1) are declared to be standard as to dimensions for the purpose
  144  of levying a surcharge as provided in this section and if any
  145  cigarette is received, purchased, possessed, sold, offered for
  146  sale, given away, or used which is of a size other than those
  147  standard dimensions, the cigarette is subject to a surcharge at
  148  the rate of 4.2 cents on each such cigarette.
  149         (3)When cigarettes as described in paragraph (1)(a) are
  150  packed in varying quantities of 20 cigarettes or fewer, except
  151  manufacturer’s free samples authorized under s. 210.04(9), the
  152  following rates shall govern:
  153         (a)Packages containing 10 cigarettes or fewer require a
  154  surcharge of 50 cents.
  155         (b)Packages containing more than 10 but not more than 20
  156  cigarettes require a surcharge of $1.
  157         (4)When cigarettes as described in paragraph (1)(b) are
  158  packed in varying quantities of 20 cigarettes or fewer, except
  159  manufacturer’s free samples authorized under s. 210.04(9), the
  160  following rates shall govern:
  161         (a)Packages containing 10 cigarettes or fewer require a
  162  surcharge of $1.
  163         (b)Packages containing more than 10 but not more than 20
  164  cigarettes require a surcharge of $2.
  165         (5)When cigarettes as described in paragraph (1)(c) are
  166  packed in varying quantities of 20 cigarettes or fewer, except
  167  manufacturer’s free samples authorized under s. 210.04(9), the
  168  following rates shall govern:
  169         (a)Packages containing 10 cigarettes or fewer require a
  170  surcharge of $2.
  171         (b)Packages containing more than 10 but not more than 20
  172  cigarettes require a surcharge of $4.
  173         (6)This surcharge shall be paid by the dealer to the
  174  division for deposit and distribution as hereinafter provided
  175  upon the first sale or transaction within the state, whether or
  176  not such sale or transfer is to the ultimate purchaser or
  177  consumer. The seller or dealer shall collect the surcharge from
  178  the purchaser or consumer, and the purchaser or consumer shall
  179  pay the surcharge to the seller. The seller or dealer is
  180  responsible for the collection of the surcharge and payment of
  181  the surcharge to the division. All surcharges are due not later
  182  than the 10th day of the month following the calendar month in
  183  which they were incurred, and thereafter shall bear interest at
  184  the rate of 1 percent per month. If the amount of surcharge due
  185  for a given period is assessed without allocating it to any
  186  particular month, the interest begins accruing on the date of
  187  the assessment. Whenever cigarettes are shipped from outside the
  188  state to anyone other than a distributing agent or wholesale
  189  dealer, the person receiving the cigarettes is responsible for
  190  the surcharge on the cigarettes and payment of the surcharge to
  191  the division.
  192         (7)It is the legislative intent that the surcharge on
  193  cigarettes be uniform throughout the state.
  194         (8)The surcharge levied under this section shall be
  195  administered, collected, and enforced in the same manner as the
  196  tax imposed under s. 210.02.
  197         (9)Revenue produced from the surcharge levied under this
  198  section shall be deposited into the Health Care Trust Fund
  199  within the Agency for Health Care Administration.
  200         Section 4. Subsection (9) of section 210.04, Florida
  201  Statutes, is amended to read:
  202         210.04 Construction; exemptions; collection.—
  203         (9) Agents, located within or without the state, shall
  204  purchase stamps and affix such stamps in the manner prescribed
  205  to packages or containers of cigarettes to be sold, distributed,
  206  or given away within the state, in which case any dealer
  207  subsequently receiving such stamped packages of cigarettes will
  208  not be required to purchase and affix stamps on such packages of
  209  cigarettes. However, the division may, in its discretion,
  210  authorize manufacturers to distribute in the state free sample
  211  packages of cigarettes containing not less than 2 or more than
  212  20 cigarettes without affixing any surcharge and tax stamps
  213  provided copies of shipping invoices on such cigarettes are
  214  furnished, and payment of all surcharges and taxes imposed on
  215  such cigarettes by law is made, directly to the division not
  216  later than the 10th day of each calendar month. The surcharge
  217  and tax on cigarettes in sample packages shall be based on a
  218  unit in accordance with the surcharges levied under s.
  219  210.011(1) and the taxing provisions of s. 210.02(1).
  220         Section 5. Subsections (6) and (9) of section 210.18,
  221  Florida Statutes, are amended, and subsection (10) is added to
  222  that section, to read:
  223         210.18 Penalties for tax evasion; reports by sheriffs.—
  224         (6)(a)Every person, firm, or corporation, other than a
  225  licensee under the provisions of this part, who possesses,
  226  removes, deposits, or conceals, or aids in the possessing,
  227  removing, depositing, or concealing of, any unstamped cigarettes
  228  not in excess of 50 cartons is guilty of a misdemeanor of the
  229  second degree, punishable as provided in s. 775.082 or s.
  230  775.083. In lieu of the penalties provided in those sections,
  231  however, the person, firm, or corporation may pay the tax plus a
  232  penalty equal to the amount of the tax authorized under s.
  233  210.02 on the unstamped cigarettes.
  234         (a)(b) Every person, firm, or corporation, other than a
  235  licensee under the provisions of this part, who possesses,
  236  removes, deposits, or conceals, or aids in the possessing,
  237  removing, depositing, or concealing of, any unstamped cigarettes
  238  in excess of 50 cartons is presumed to have knowledge that they
  239  have not been taxed and commits is guilty of a felony of the
  240  third degree, punishable as provided in s. 775.082, s. 775.083,
  241  or s. 775.084.
  242         (b)(c) This section does not apply to a person possessing
  243  not in excess of three cartons of such cigarettes purchased by
  244  such possessor outside the state in accordance with the laws of
  245  the place where purchased and brought into this state by such
  246  possessor. The burden of proof that such cigarettes were
  247  purchased outside the state and in accordance with the laws of
  248  the place where purchased shall in all cases be upon the
  249  possessor of such cigarettes.
  250         (9) Notwithstanding any other provision of law, the sale or
  251  possession for sale of counterfeit cigarettes by any person or
  252  by a manufacturer, importer, distributing agent, wholesale
  253  dealer, or retail dealer shall result in the seizure of the
  254  product and related machinery by the division or any law
  255  enforcement agency, and shall be punishable as follows:.
  256         (a)1.A first violation involving a total quantity of fewer
  257  than two cartons of cigarettes or the equivalent amount of other
  258  cigarettes is punishable by a fine not to exceed $1,000 or five
  259  times the retail value of the cigarettes involved, whichever is
  260  greater, or imprisonment not to exceed 5 years, or both.
  261         2.A second or subsequent violation involving a total
  262  quantity of fewer than two cartons of cigarettes or the
  263  equivalent amount of other cigarettes is punishable by a fine
  264  not to exceed $5,000 or five times the retail value of the
  265  cigarettes involved, whichever is greater, or imprisonment not
  266  to exceed 5 years, or both, and shall also result in the
  267  revocation by the division of the permit of the manufacturer,
  268  importer, distributing agent, wholesale dealer, or retail
  269  dealer.
  270         (b)1.A first violation involving a total quantity of two
  271  or more cartons of cigarettes or the equivalent amount of other
  272  cigarettes is punishable by a fine not to exceed $2,000 or five
  273  times the retail value of the cigarettes involved, whichever is
  274  greater, or imprisonment not to exceed 5 years, or both.
  275         2.A second or subsequent violation involving a quantity of
  276  two or more cartons of cigarettes or the equivalent amount of
  277  other cigarettes is punishable by a fine not to exceed $50,000
  278  or five times the retail value of the cigarettes involved,
  279  whichever is greater, or imprisonment not to exceed 5 years, or
  280  both, and shall result in the revocation by the division of the
  281  permit of the manufacturer, importer, distributing agent,
  282  wholesale dealer, or retail dealer.
  283         (10)The division shall create a toll-free number for
  284  reporting violations of this part. Upon a determination that a
  285  violation has occurred, the division shall pay the informant a
  286  reward of up to 50 percent of the fine levied and paid under
  287  this section. A notice must be conspicuously displayed in every
  288  location where cigarettes are sold which contains the following
  289  provision in conspicuous type: “NOTICE TO CUSTOMER: FLORIDA LAW
  290  PHOHIBITS THE POSESSION OR SALE OF UNSTAMPED CIGARETTES. REPORT
  291  VIOLATIONS TO (TOLL-FREE NUMBER). YOU MAY BE ELIGIBLE FOR A CASH
  292  REWARD.” This notice must be provided at the expense of the
  293  retail dealer.
  294         Section 6. Section 210.25, Florida Statutes, is amended to
  295  read:
  296         210.25 Definitions.—As used in this part unless otherwise
  297  provided:
  298         (1) “Business” means any trade, occupation, activity, or
  299  enterprise engaged in for the purpose of selling or distributing
  300  tobacco products in this state.
  301         (2) “Consumer” means any person who has title to or
  302  possession of tobacco products in storage for use or other
  303  consumption in this state.
  304         (3) “Division” means the Division of Alcoholic Beverages
  305  and Tobacco of the Department of Business and Professional
  306  Regulation.
  307         (4) “Distributor” means:
  308         (a) Any person engaged in the business of selling tobacco
  309  products in this state who brings, or causes to be brought, into
  310  this state from outside the state any tobacco products for sale;
  311         (b) Any person who makes, manufactures, or fabricates
  312  tobacco products in this state for sale in this state; or
  313         (c) Any person engaged in the business of selling tobacco
  314  outside this state who ships or transports tobacco products to
  315  retailers in this state to be sold by those retailers.
  316         (5) “Manufacturer” means any person who manufactures and
  317  sells tobacco products.
  318         (6) “Place of business” means any place where tobacco
  319  products are sold, manufactured, stored or kept for the purpose
  320  of sale or consumption, including any vessel, vehicle, airplane,
  321  train, or vending machine.
  322         (7) “Retail outlet” means each place of business from which
  323  tobacco products are sold to consumers.
  324         (8) “Retailer” means any person engaged in the business of
  325  selling tobacco products to ultimate consumers.
  326         (9) “Sale” means any transfer, exchange, or barter for a
  327  consideration. The term “sale” includes a gift by a person
  328  engaged in the business of selling tobacco products for
  329  advertising or as a means of evading this part or for any other
  330  purpose.
  331         (10) “Storage” means any keeping or retention of tobacco
  332  products for use or consumption in this state.
  333         (11) “Tobacco products” means loose tobacco suitable for
  334  smoking; snuff; snuff flour; cavendish; plug and twist tobacco;
  335  fine cuts and other chewing tobaccos; shorts; refuse scraps;
  336  clippings, cuttings, and sweepings of tobacco, and other kinds
  337  and forms of tobacco prepared in such manner as to be suitable
  338  for chewing; but “tobacco products” does not include cigarettes,
  339  as defined by s. 210.01(1), or cigars.
  340         (12) “Use” means the exercise of any right or power
  341  incidental to the ownership of tobacco products.
  342         (13) “Wholesale sales price” means the established price
  343  for which a manufacturer sells a tobacco product to a
  344  distributor, exclusive of any diminution by volume or other
  345  discounts.
  346         Section 7. Section 210.211, Florida Statutes, is created to
  347  read:
  348         210.211Surcharge on tobacco products.—
  349         (1)For the purposes of this section, the term “tobacco
  350  products” means cigars, loose tobacco suitable for smoking;
  351  snuff; snuff flour; cavendish; plug and twist tobacco; fine cuts
  352  and other chewing tobaccos; shorts; refuse scraps; clippings,
  353  cuttings, and sweepings of tobacco, and other kinds and forms of
  354  tobacco prepared in such manner as to be suitable for chewing;
  355  but “tobacco products” does not include cigarettes, as defined
  356  by s. 210.01(1).
  357         (2)A surcharge is levied upon all tobacco products in this
  358  state and upon any person engaged in business as a distributor
  359  thereof at the rate of $1 for each ounce, with a proportionate
  360  surcharge at the same rate on all fractions of an ounce thereof,
  361  of such tobacco products, except that cigars weighing not more
  362  than 3 pounds per thousand shall be subject to the surcharge
  363  levied on cigarettes under s. 210.011(1)(a). The surcharge shall
  364  be levied at the time the distributor:
  365         (a)Brings or causes to be brought into this state from
  366  without the state tobacco products for sale;
  367         (b)Makes, manufactures, or fabricates tobacco products in
  368  this state for sale in this state; or
  369         (c)Ships or transports tobacco products to retailers in
  370  this state, to be sold by those retailers.
  371         (3)A surcharge is imposed upon the use or storage by
  372  consumers of tobacco products in this state and upon such
  373  consumers at the rate of $1 for each ounce, with a proportionate
  374  surcharge at the same rate on all fractions of an ounce thereof.
  375  The surcharge imposed by this subsection does not apply if the
  376  surcharge imposed by subsection (2) on such tobacco products has
  377  been paid. This surcharge does not apply to the use or storage
  378  of tobacco products in quantities of less than 1 pound in the
  379  possession of any one consumer.
  380         (4)Any tobacco product with respect to which a surcharge
  381  has once been imposed under this section is not again subject to
  382  surcharge under this section.
  383         (5)No surcharge shall be imposed by this section upon
  384  tobacco products not within the taxing power of the state under
  385  the Commerce Clause of the United States Constitution.
  386         (6)The exemptions provided for cigarettes under s.
  387  210.04(4) also apply to tobacco products subject to a surcharge
  388  under this section.
  389         (7)The surcharge levied under this section shall be
  390  administered, collected, and enforced in the same manner as the
  391  tax imposed under s. 210.30.
  392         (8)Revenue produced from the surcharge levied under this
  393  section shall be deposited into the Health Care Trust Fund
  394  within the Agency for Health Care Administration.
  395         Section 8. The additional surcharges imposed by ss. 210.011
  396  and 210.211, Florida Statutes, apply to existing inventory as of
  397  July 1, 2009. On July 1, 2009, each manufacturer, distributor,
  398  wholesaler, and vendor in the state shall take an inventory of
  399  the cigarettes and other tobacco products in its possession
  400  before opening for business. The amount of inventory shall be
  401  certified to the Division of Alcoholic Beverages and Tobacco of
  402  the Department of Business and Professional Regulation on or
  403  before July 21, 2009, and shall include documentation
  404  accompanied by certified check, money order, or an electronic
  405  funds transfer for the amount of the additional surcharge due on
  406  the inventory. The manufacturer, distributor, or retailer may
  407  pay the surcharge in four equal installments of 25 percent of
  408  the total amount due. If the manufacturer, distributor, or
  409  retailer opts to pay in installments, it shall pay the first
  410  installment by July 21, 2009, along with the required
  411  documentation; the second installment by August 10, 2009; the
  412  third installment by August 30, 2009; and the fourth installment
  413  by September 9, 2009. Chapter 210, Florida Statutes, relating to
  414  penalties and interest for delinquent payments applies to this
  415  section. The proceeds of the additional surcharge on the
  416  existing inventory shall be deposited into the Health Care Trust
  417  Fund within the Agency for Health Care Administration.
  418         Section 9. Subsection (5) of section 210.05, Florida
  419  Statutes, is amended to read:
  420         210.05 Preparation and sale of stamps; discount.—
  421         (5) Cigarettes sold to the Seminole Indian Tribe of Florida
  422  shall be administered as provided in s. 210.1801. Agents or
  423  wholesale dealers may sell stamped but untaxed cigarettes to the
  424  Seminole Indian Tribe, or to members thereof, for retail sale.
  425  Agents or wholesale dealers shall treat such cigarettes and the
  426  sale thereof in the same manner, with respect to reporting and
  427  stamping, as other sales under this part, but agents or
  428  wholesale dealers shall not collect from the purchaser the tax
  429  imposed by s. 210.02. The purchaser hereunder shall be
  430  responsible to the agent or wholesale dealer for the services
  431  and expenses incurred in affixing the stamps and accounting
  432  therefor.
  433         Section 10. Section 210.1801, Florida Statutes, is created
  434  to read:
  435         210.1801Administration of Indian-stamped cigarettes and
  436  other tobacco products; penalties for possession by nontribal
  437  members.—
  438         (1)Agents or wholesale dealers may sell stamped but
  439  untaxed cigarettes to the Seminole Indian Tribe of Florida, or
  440  to members thereof, and to the Miccosukee Tribe of Florida
  441  Indians, or to members thereof, for retail sale to tribal
  442  members. Agents or wholesale dealers shall treat such cigarettes
  443  and the sale thereof in a fashion that distinguishes these
  444  cigarettes from those distributed or sold to nontribal members
  445  or entities by affixing a stamp that indicates the cigarettes as
  446  Indian cigarettes, and agents or wholesale dealers shall not
  447  collect from the purchaser the tax imposed by s. 210.02 or the
  448  surcharge impose by s. 210.011. The purchaser is responsible to
  449  the agent or wholesale dealer for the services and expenses
  450  incurred in affixing the stamps and accounting thereof.
  451         (2)Agents or wholesale dealers may sell stamped but
  452  untaxed tobacco products as defined by s. 210.25(11) to the
  453  Seminole Indian Tribe of Florida, or to members thereof, and to
  454  the Miccosukee Tribe of Florida Indians, or to members thereof,
  455  for retail sale to tribal members. Agents or wholesale dealers
  456  shall treat such tobacco products and the sale thereof in a
  457  fashion that distinguishes these tobacco products from those
  458  distributed or sold to persons who are not tribal members or
  459  entities by affixing a stamp that indicates the cigarettes as
  460  Indian cigarettes and the tobacco products as Indian tobacco
  461  products, and agents or wholesale dealers shall not collect from
  462  the purchaser the tax imposed by s. 210.02 or s. 210.30, or the
  463  surcharge imposed by s. 210.011 or s. 210.211. Such stamps shall
  464  identify the tribe, or member thereof, to which the cigarettes
  465  are sold. The purchaser is responsible to the agent or wholesale
  466  dealer for the services and expenses incurred in affixing the
  467  stamps and accounting thereof.
  468         (3)For purposes of this chapter, cigarettes stamped in a
  469  fashion that indicates them to be Indian cigarettes shall be
  470  known as “Indian cigarettes” and tobacco products that are
  471  stamped in a fashion that indicates the products to be Indian
  472  tobacco products shall be known as “Indian tobacco products.”
  473         (4)Excepting manufacturers or distributors licensed under
  474  the cigarette law and state-bonded warehouses, a nontribal
  475  member who possesses Indian cigarettes or Indian tobacco
  476  products commits a misdemeanor of the first degree, punishable
  477  as provided in s. 775.082 or s. 775.084 and is liable for a fine
  478  of $1,000 or five times the retail value of the cigarettes
  479  involved, whichever is greater. The provisions of s.
  480  210.18(4)(b) do not apply to Indian cigarettes.
  481         (5)The division shall conduct a public-awareness campaign
  482  regarding the penalties for possession of Indian cigarettes or
  483  Indian tobacco products by nontribal members. A notice must be
  484  conspicuously displayed in every location where cigarettes or
  485  other tobacco products are sold which contains the following
  486  provision in conspicuous type: “NOTICE TO CUSTOMER: FLORIDA LAW
  487  PHOHIBITS THE POSESSION OR SALE BY NONTRIBAL MEMBERS OF ANY
  488  CIGARRETES BEARING INDIAN STAMPS. FLORIDA LAW ALSO PROHIBITS THE
  489  POSSESSION OR SALE OF ANY TOBACCO PRODUCTS BEARING INDAIN STAMPS
  490  BY NONTRIBAL MEMBERS. VIOLATIONS OF THESE LAWS ARE A FIRST
  491  DEGREE MISDEMEANOR AND MAY RESULT IN IMPRISONMENT AND FINES OF
  492  $1,000 OR FIVE TIMES THE RETAIL VALUE OF THE CIGARETTES OR
  493  TOBACCO PRODUCTS, WHICHEVER IS GREATER.” This notice must be
  494  provided at the expense of the retail dealer.
  495         (6) A sheriff, deputy sheriff, police officer, or state law
  496  enforcement officer, upon the seizure of any Indian cigarettes
  497  or Indian tobacco products in the possession of nontribal
  498  members under this section, shall promptly report the seizure to
  499  the division or its representative, together with a description
  500  of all such cigarettes and tobacco products seized, so that the
  501  state may be kept informed as to the size and magnitude of the
  502  illicit cigarette business. The division shall keep records
  503  showing the number of seizures and seized cigarettes reported
  504  to, or seized by, the division.
  505         (7)Subsections (4) and (6) do not apply to cigarette and
  506  tobacco products sold to a tribe that has entered into an
  507  approved compact with the state which provides for revenue
  508  sharing between the tribe and the state relating to the
  509  imposition and collection of the taxes imposed by ss. 210.02 and
  510  210.30, and the surcharges imposed by ss. 210.011 and 210.211.
  511  Any compact must at a minimum provide for the state to receive
  512  as revenue sharing from the tribe the full amounts of the
  513  surcharges imposed by ss. 210.011 and 210.211. Upon the approval
  514  of a compact meeting the requirements of this subsection, the
  515  notice required in subsection (5) shall be modified to include:
  516  “IT IS NOT A VIOLATION FOR NONTRIBAL MEMBERS TO POSSESS
  517  CIGARETTES OR TOBACCO PRODUCTS BEARING THE STAMP OF (Insert name
  518  of tribe for which compact has been established).” Upon the
  519  approval of a compact meeting the conditions specified above
  520  with all Indian tribes, subsection (5) is no longer applicable.
  521         Section 11. There is appropriated the sum of $50,000 from
  522  the Alcoholic Beverage and Tobacco Trust Fund to the Division of
  523  Alcoholic Beverages and Tobacco of the Department of Business
  524  and Professional Regulation for the purposes of conducting the
  525  public awareness campaign required under s. 210.1801(5), Florida
  526  Statutes.
  527         Section 12. This act shall take effect July 1, 2009.