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.
17
18 Be It Enacted by the Legislature of the State of Florida:
19
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
28 566.011 Definitions.—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.
71 566.012 Excise 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.
136 566.013 Distribution 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.
144 566.014 Annual 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.
149 566.015 Violations.-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.