Florida Senate - 2021                                    SB 1940
       By Senator Powell
       30-01238-21                                           20211940__
    1                        A bill to be entitled                      
    2         An act relating to taxes and fees; creating Part I of
    3         ch. 566, F.S., entitled “Excise Tax”; defining terms;
    4         imposing an excise tax on recreational marijuana;
    5         providing for inflation adjustments to the tax rate;
    6         providing for collection of the tax; providing for
    7         distribution of tax revenues; requiring an annual
    8         report concerning tax revenues; providing criminal
    9         penalties; amending s. 566.036, F.S.; authorizing an
   10         application fee for marijuana establishments;
   11         authorizing applicants to receive more than one type
   12         of marijuana establishment license, providing an
   13         exception; amending s. 566.037, F.S.; conforming
   14         provisions to changes made by the act; providing for
   15         rulemaking concerning application fees; providing
   16         effective dates.
   18  Be It Enacted by the Legislature of the State of Florida:
   20         Section 1. Part I of chapter 566, Florida Statutes, as
   21  created by SB ___, 2021 Regular Session, is redesignated as Part
   22  II, and a new Part I of that chapter, consisting of sections
   23  566.011 through 566.015, is created to read:
   24                             CHAPTER 566                           
   25                       RECREATIONAL MARIJUANA                      
   26                               PART I                              
   27                             EXCISE TAX                            
   28         566.011Definitions.—As used in this part, the term:
   29         (1)“Department” means the Department of Business and
   30  Professional Regulation.
   31         (2)“Division” means the Division of Alcoholic Beverages,
   32  Marijuana, and Tobacco of the department.
   33         (3)“Marijuana” means all parts of the plant of the genus
   34  cannabis, whether growing or not, the seeds thereof, the resin
   35  extracted from any part of the plant, and every compound,
   36  manufacture, salt, derivative, mixture, or preparation of the
   37  plant, its seeds, or its resin, including marijuana concentrate.
   38  The term does not include industrial hemp, fiber produced from
   39  the stalks, oil, cake made from the seeds of the plant,
   40  sterilized seed of the plant that is incapable of germination,
   41  or the weight of any ingredient combined with marijuana to
   42  prepare topical or oral administrations, food, drink, or any
   43  other product.
   44         (4)“Marijuana cultivation facility” means an entity
   45  licensed to cultivate, prepare, and package and sell marijuana
   46  to retail marijuana stores, to marijuana product manufacturing
   47  facilities, and to other marijuana cultivation facilities, but
   48  not to consumers.
   49         (5)“Marijuana establishment” means a marijuana cultivation
   50  facility, marijuana testing facility, marijuana product
   51  manufacturing facility, or retail marijuana store.
   52         (6)“Marijuana product manufacturing facility” means an
   53  entity licensed to:
   54         (a)Purchase marijuana;
   55         (b)Manufacture, prepare, and package marijuana products;
   56  or
   57         (c)Sell marijuana and marijuana products to other
   58  marijuana product manufacturing facilities and to retail
   59  marijuana stores, but not to consumers.
   60         (7)“Marijuana products” means concentrated marijuana and
   61  products that consist of marijuana and other ingredients and are
   62  intended for use or consumption, including, but not limited to,
   63  edible products, ointments, and tinctures.
   64         (8)“Marijuana testing facility” means an entity licensed
   65  to analyze and certify the safety and potency of marijuana.
   66         (9)“Retail marijuana store” means an entity licensed to
   67  purchase marijuana from a marijuana cultivation facility and
   68  marijuana products from a marijuana product manufacturing
   69  facility and to sell marijuana and marijuana products to
   70  consumers.
   71         566.012Excise tax on marijuana.—
   72         (1)An excise tax is imposed on the sale or transfer of
   73  marijuana from a marijuana cultivation facility to a retail
   74  marijuana store or marijuana product manufacturing facility.
   75  Each marijuana cultivation facility shall pay an excise tax at
   76  the rate of $50 per ounce, or proportionate part thereof, on
   77  marijuana that is sold or transferred from a marijuana
   78  cultivation facility pursuant to part II.
   79         (2)The excise tax rate under subsection (1) shall be
   80  adjusted annually for inflation.
   81         (a)Beginning in 2023, on or about February 15 of each
   82  year, the department shall calculate the adjusted excise tax
   83  rates by multiplying the rates in effect on the calculation date
   84  by an inflation index computed as provided in paragraph (b). The
   85  adjusted rates must be rounded to the nearest penny and become
   86  effective on the first day of July immediately after the
   87  calculation. The division shall publish the annually adjusted
   88  excise tax rates and shall provide all necessary forms and
   89  reports.
   90         (b)The inflation index is the Consumer Price Index for All
   91  Urban Consumers, U.S. City Average, or successor reports, as
   92  reported by the United States Department of Labor, Bureau of
   93  Labor Statistics, for the calendar year ending on December 31
   94  immediately before the calculation date, divided by the Consumer
   95  Price Index for the previous calendar year. The inflation index
   96  may not be less than one.
   97         (c)1.A marijuana cultivation facility subject to the
   98  licensing requirement of s. 566.036 shall file, on or before the
   99  last day of each month, a return on a form prescribed and
  100  furnished by the division together with payment of the tax due
  101  under this part. The return must report all marijuana products
  102  held, purchased, manufactured, brought in, or caused to be
  103  brought in from outside the state or shipped or transported to a
  104  retail marijuana store or marijuana product manufacturing
  105  facility within the state during the previous calendar month. A
  106  marijuana cultivation facility shall keep a complete and
  107  accurate record at its principal place of business to
  108  substantiate all receipts and sales of marijuana products.
  109         2.The return must include further information as the
  110  division may prescribe. Tax previously paid on marijuana
  111  products that are returned to a marijuana establishment because
  112  the product has become unfit for use, sale, or consumption and
  113  for marijuana products that are returned to a marijuana
  114  cultivation facility that are subsequently destroyed by the
  115  marijuana cultivation facility may be taken as a credit on a
  116  subsequent return. The division may either witness the
  117  destruction of the product or may accept another form of proof
  118  that the product has been destroyed by the marijuana cultivation
  119  facility.
  120         3.A person who is not a marijuana cultivation facility
  121  licensed pursuant to s. 566.036 who imports, receives, or
  122  otherwise acquires marijuana products for use or consumption in
  123  the state from a person other than a licensed marijuana
  124  cultivation facility shall file, on or before the last day of
  125  the month after each month in which marijuana products were
  126  acquired, a return on a form prescribed by the division together
  127  with payment of the tax imposed by this part at the rate
  128  provided in subsection (1). The return must report the quantity
  129  of marijuana products imported, received, or otherwise acquired
  130  from a person other than a licensed marijuana cultivation
  131  facility during the previous calendar month and additional
  132  information that the division may require.
  133         (d)If a marijuana cultivation facility fails to make tax
  134  payments as required by this section, the division may revoke
  135  the marijuana cultivation facility’s license.
  136         566.013Distribution of revenues.—On or before the last day
  137  of each month, the Chief Financial Officer shall transfer 15
  138  percent of the revenue received by the division during the
  139  preceding month pursuant to the tax imposed by s. 566.012 to the
  140  Alcoholic Beverage, Marijuana, and Tobacco Trust Fund
  141  established under s. 561.025. On or before the last day of each
  142  month, the Chief Financial Officer shall transfer the remainder
  143  of the revenues to the Child Care Trust Fund.
  144         566.014Annual report.—The division shall report annually
  145  beginning January 30, 2023, the amount of tax revenue collected
  146  pursuant to s. 566.012 and the amount distributed pursuant to s.
  147  561.025(3) to the appropriations committees of each house of the
  148  Legislature.
  149         566.015Violations.-Any person willfully and knowingly
  150  making any false entries in any records required under this part
  151  or willfully violating any of the provisions of the this part,
  152  concerning the excise tax herein provided for commits a felony
  153  of the third degree, punishable as provided in s. 775.082, s.
  154  775.083, or s. 775.084.
  155         Section 2. Subsection (1) of section 566.036, Florida
  156  Statutes, as created by SB ___, 2021 Regular Session, is
  157  amended, to read:
  158         566.036 Licensing of marijuana establishments.—
  159         (1) An applicant for a marijuana establishment license
  160  shall file an application in the form required by the division
  161  for the type of marijuana establishment license sought, along
  162  with the application fee, not to exceed $5,000, as set by rule.
  163  An applicant may apply for and be granted more than one type of
  164  marijuana establishment license, except that a person licensed
  165  as a marijuana testing facility may not hold another marijuana
  166  establishment license. The division shall begin accepting and
  167  processing applications by August 1, 2022.
  168         Section 3. Paragraph (d) of subsection (2) of section
  169  566.037, Florida Statutes, as created by SB ___, 2021 Regular
  170  Session, is amended to read:
  171         566.037 Local control.—
  172         (2) If a locality does not prohibit the operation of a
  173  marijuana establishment pursuant to subsection (1), the
  174  following apply:
  175         (d) If the division does not issue a license to an
  176  applicant within 90 days after receipt of the application filed
  177  in accordance with s. 566.036 and does not notify the applicant
  178  of the specific reason for denial, in writing and within 90 days
  179  after receipt of the application, the applicant may resubmit its
  180  application directly to the locality and the locality may issue
  181  an annual license to the applicant. A locality issuing a license
  182  to an applicant shall do so within 90 days after receipt of the
  183  resubmitted application unless the locality finds, and notifies
  184  the applicant, that the applicant is not in compliance with an
  185  ordinance, rule, or regulation made pursuant to s. 566.035 or
  186  paragraph (b) in effect at the time the application is
  187  resubmitted. The locality shall notify the division if the
  188  locality issues an annual license to the applicant. If an
  189  application is submitted to a locality under this paragraph, the
  190  division shall forward to the locality the application fee paid
  191  by the applicant to the division upon request by the locality.
  192         Section 4. Effective upon this act becoming a law,
  193  paragraph (b) of subsection (2) of section 6 of SB ___, 2021
  194  Regular Session, is amended to read:
  195         Rulemaking.—This section shall take effect upon this act
  196  becoming a law.
  197         (2) Rules adopted pursuant to this section must include:
  198         (b) The form and content of applications for each type of
  199  marijuana establishment license, and registration renewal forms,
  200  and renewal fee schedules, except that an application,
  201  licensing, or renewal fee may not exceed $5,000.
  202         Section 5. Except as otherwise expressly provided in this
  203  act, and except for this section, which shall take effect upon
  204  this act becoming a law, this act shall take effect on the same
  205  date that SB ___ or similar legislation takes effect, if such
  206  legislation is adopted in the same legislative session or an
  207  extension thereof and becomes a law.