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,
andregistration 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.