Florida Senate - 2022 SB 1886 By Senator Powell 30-00953-22 20221886__ Page 1 of 28 CODING: Words stricken are deletions; words underlined are additions. A bill to be entitled 1

An act relating to taxes and fees; creating s. 2 566.801, F.S.; specifying fees under ch. 566, F.S., 3 for various applications, renewals, and other 4 purposes; creating s. 566.802, F.S.; providing 5 contributions for early approval adult use dispensing 6 organization licenses; creating s. 566.803, F.S.; 7 authorizing the Department of Business and 8 Professional Regulation to revise fees after a 9 specified date; creating s. 566.804, F.S.; providing 10 for certain mandatory contributions for obtaining 11 early approval adult use dispensing organization 12 licenses; creating s. 566.805, F.S.; levying a tax on 13 the cultivation of cannabis; specifying the amount of 14 the tax; providing for the collection, payment, and 15 administration of the tax; providing for rulemaking; 16 creating s. 566.806, F.S.; defining terms; levying a 17 tax on cannabis purchases; providing exceptions; 18 providing for the collection, payment, and 19 administration of the tax; requiring recordkeeping; 20 prohibiting specified offenses concerning the tax; 21 providing criminal penalties; defining terms; 22 providing for enforcement; authorizing the department 23 to adopt rules; providing a contingent effective date. 24 25 Be It Enacted by the Legislature of the State of Florida: 26 27

Section

Section 566.801, Florida Statutes, is created to 28 read: 29

Florida Senate - 2022 SB 1886 30-00953-22 20221886__ Page 2 of 28 CODING: Words stricken are deletions; words underlined are additions. 566.801 Fees.—Licensing and registration fees under this 30

chapter are as follows: 31

(1) Early approval adult use dispensing organization 32 license fees: 33 (

a) Application under s. 566.202(2)(a), $30,000. 34 (

b) Renewal under s. 566.202(11)(a), $30,000. 35 (

c) Secondary site application under s. 566.202(15)(d)1., 36 $30,000. 37 (

d) Secondary site renewal under s. 566.202(15)(p)1., 38 $30,000. 39

(2) Conditional adult use dispensing organization licenses: 40 (

a) Under s. 566.203(4)(a), $5,000. 41 (

b) Under s. 566.203(7)(b), $60,000. 42

(3) Adult use dispensing organization licenses: 43 (

a) Initial license under s. 566.2032(2)(b), $60,000. 44 (

b) Renewal under s. 566.20331(3), $60,000. 45

(4) Adult use dispensing organization agent: 46 (

a) Identification card fees: 47 1. Initial card under s. 566.2033(1)(e), $100. 48 2. Renewal card under s. 566.20331(3), $100. 49 (

b) Applicants for training approval: 50 1. Under s. 566.2033(1)(e), $2,000. 51 2. Under s. 566.2033(16), $2,000. 52

(5) Changes in ownership of a dispensing organization under 53 s. 566.20334(10)(b), $5,000. 54

(6) Early approval of adult use cultivation center 55 licenses: 56 (

a) Application fee under s. 566.3011(2)(a), $100,000. 57 (

b) Cannabis business development fee under s. 58

Florida Senate - 2022 SB 1886 30-00953-22 20221886__ Page 3 of 28 CODING: Words stricken are deletions; words underlined are additions. 566.3011(2)(h), $250,000. 59 (

c) Required contribution under s. 566.3011(2)(i), 60 $100,000. 61 (

d) Renewal fee under s. 566.3011(3)(a), $100,000. 62

(7) Conditional adult use license under s. 566.3013(4), 63 $100,000. 64

(8) Conditional adult use cultivation center license 65 registration fee under s. 566.3014(2)(b), $100,000. 66

(9) Cultivation center license renewal under s. 67 566.3019(1)(a), $100,000. 68

(10) Craft grower: 69 (

a) Application fee under s. 566.401(2)(a)1., $5,000. 70 (

b) License fee under s. 566.401(3)(d), $40,000. 71 (

c) License renewal under s. 566.401(9)(a)1., $40,000. 72

(11) Infuser organization: 73 (

a) Application fee under s. 566.405(2)(a)1., $5,000. 74 (

b) License fee under s. 566.401(3)(d), $5,000. 75 (

c) Renewal application fee under s. 566.405(9)(a)1., 76 $20,000. 77

(12) Transporting organizations: 78 (

a) Application fee under s. 566.4501(2)(a)1., $5,000. 79 (

b) License fee under s. 566.4501(3)(e), $10,000. 80 (

c) Renewal fee under s. 566.4501(8)(a)1., $10,000. 81

Section

Section 566.802, Florida Statutes, is created to 82 read: 83 566.802 Contributions for early approval adult use 84 dispensing organization licenses.—The contributions for early 85 approval adult use dispensing organization licenses under this 86

chapter are as follows: 87

Florida Senate - 2022 SB 1886 30-00953-22 20221886__ Page 4 of 28 CODING: Words stricken are deletions; words underlined are additions.

(1) Nonrefundable cannabis business development fee under 88 s. 566.202(2)(g), $100,000. 89

(2) Social equity inclusion plans specified in s. 90 566.202(2)(h)1., 2., or 3., $100,000. 91

(3) Social equity inclusion plan specified in s. 92 566.202(2)(h)5., $200,000. 93

Section

Section 566.803, Florida Statutes, is created to 94 read: 95 566.803 Department fee revisions.—After January 1, 2022, 96 the department may by rule modify any fee established under this 97 chapter. 98

Section

Section 566.804, Florida Statutes, is created to 99 read: 100 566.804 Mandatory contributions for early approval adult 101 use dispensing organization licenses.—The mandatory 102 contributions for early approval adult use dispensing 103 organization licenses under this

chapter are as follows: 104

(1) Nonrefundable cannabis business development fee under 105 s. 566.202(2)(g), $100,000. 106

(2) Social equity inclusion plans specified in s. 107 566.202(2)(h)1., 2., or 3., $100,000. 108

(3) Social equity inclusion plan specified in s. 109 566.202(2)(h)5., $200,000. 110

(4) Nonrefundable cannabis development fee for secondary 111 site applications under s. 566.202(15)(d)15., $200,000. 112

Section

Section 566.805, Florida Statutes, as created by 113 SB ___, is amended to read: 114 566.805 Cannabis cultivation.— 115

(1) CULTIVATING CANNABIS PRIVILEGE.— 116

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a) Beginning January 1, 2023, a tax is imposed upon the 117 privilege of cultivating cannabis at the rate of 7 percent of 118 the gross receipts from the first sale of cannabis by a 119 cultivator. The sale of any product that contains any amount of 120 cannabis or any derivative thereof is subject to the tax under 121 this

section on the full selling price of the product. The 122 department may determine the selling price of the cannabis when 123 the seller and purchaser are affiliated persons, when the sale 124 and purchase of cannabis is not an arm’s length transaction, or 125 when cannabis is transferred by a craft grower to the craft 126 grower’s dispensing organization or infuser or processing 127 organization and a value is not established for the cannabis. 128 The value determined by the department must be commensurate with 129 the actual price received for products of like quality, 130 character, and use in the area.

If there are no sales of 131 cannabis of like quality, character, and use in the same area, 132 the department must establish a reasonable value based on sales 133 of products of like quality, character, and use in other areas 134 of this state, taking into consideration any other relevant 135 factors. 136 (

b) The cannabis cultivation privilege tax imposed under 137 this

section is solely the responsibility of the cultivator who 138 makes the first sale and is not the responsibility of a 139 subsequent purchaser, a dispensing organization, or an infuser. 140 Persons subject to the tax imposed under this

section may 141 reimburse themselves for their tax liability hereunder by 142 separately stating reimbursement for their tax liability as an 143 additional charge. 144 (

c) The tax imposed under this

section is in addition to 145

Florida Senate - 2022 SB 1886 30-00953-22 20221886__ Page 6 of 28 CODING: Words stricken are deletions; words underlined are additions. all other occupation, privilege, or excise taxes imposed by the 146 state or by any unit of local government. 147

(2) REGISTRATION OF CULTIVATORS.—Every cultivator and craft 148 grower subject to the tax under this

section shall apply to the 149 Department of Revenue for a certificate of registration under 150 this section. All applications for registration under this 151

section must be made by electronic means in the form and manner 152 required by the department. For that purpose, the provisions of 153

chapter 212 are incorporated into this

section to the extent 154 such provisions are not inconsistent with this section. In 155 addition, a certificate of registration may not be issued under 156 this

section unless the applicant is licensed under this 157 chapter. 158 (3)(

a) RETURN AND PAYMENT.—Each person who is required to 159 pay the tax imposed by this

section shall make a return to the 160 department on or before the 20th day of each month for the 161 preceding calendar month stating the following: 162 1. The taxpayer’s name. 163 2. The address of the taxpayer’s principal place of 164 business and, if different, the address where the taxpayer is 165 engaged in the business of cultivating cannabis subject to tax 166 under this section. 167 3. The total amount of receipts received by the taxpayer 168 during the preceding calendar month from sales of cannabis 169 subject to tax under this section. 170 4.

The total amount received by the taxpayer during the 171 preceding calendar month on charge and time sales of cannabis 172 subject to tax imposed under this section. 173 5. Any deductions allowed by law. 174

Florida Senate - 2022 SB 1886 30-00953-22 20221886__ Page 7 of 28 CODING: Words stricken are deletions; words underlined are additions. 6. The gross receipts that were received by the taxpayer 175 during the preceding calendar month and upon the basis of which 176 the tax is imposed. 177 7. The amount of tax due. 178 8. The signature of the taxpayer. 179 9. Any other information as the department may reasonably 180 require. 181 (

b) All returns required to be filed and payments required 182 to be made under this

section must be by electronic means. 183 Taxpayers who demonstrate hardship in paying electronically may 184 petition the department to waive the electronic payment 185 requirement. 186 (

c) The taxpayer making the return provided for in this 187

section shall also pay to the department the amount of tax 188 imposed by this section, less a discount of 1.75 perc ent, which 189 may not exceed the $1,000 allowed per return period to reimburse 190 the taxpayer for the expenses incurred in keeping records, 191 collecting and remitting the tax, preparing and filing returns, 192 and supplying data to the department upon request. Howeve r, a 193 discount may not be claimed by a taxpayer in the following 194 instances: 195 1. On returns not timely filed and for taxes not timely 196 remitted. 197 2. On returns that are not filed electronically. 198 3.

For any payment that is not made electronically, unless 199 a waiver has been granted under this section. 200 (

d) Any amount that is required to be shown or reported on 201 any return or other document under this

section must, if the 202 amount is not a whole dollar amount, be increased to the nearest 203

Florida Senate - 2022 SB 1886 30-00953-22 20221886__ Page 8 of 28 CODING: Words stricken are deletions; words underlined are additions. whole dollar amount if the fractional part of a dollar is $0.50 204 or more and decreased to the nearest whole dollar amount if the 205 fractional part of a dollar is less than $0.50. 206 (

e) If a total amount of less than $1 is payable, 207 refundable, or creditable, the amount must be disregarded if i t 208 is less than $0.50 and must be increased to $1 if it is $0.50 or 209 more. 210 (

f) A taxpayer who ceases to engage in business subject to 211 the requirements of this

section shall file a final return under 212 this

section with the department within 1 month after 213 discontinuing such business, notwithstanding any provision of 214 this

section concerning the timeframe within which the taxpayer 215 must file the regular return. 216 (

g) Each taxpayer subject to this

section shall make 217 estimated payments to the department on or before th e 7th, 15th, 218 22nd, and last day of the month during which tax liability to 219 the department is incurred. The payments must be in an amount 220 not less than the lower of either 22.5 percent of the taxpayer’s 221 actual tax liability for the month or 25 percent of th e 222 taxpayer’s actual tax liability for the same calendar month of 223 the preceding year. 224 (

h) The amount of the quarter-monthly payments must be 225 credited against the final tax liability of the taxpayer’s 226 return for that month. If any quarter-monthly payment is not 227 paid at the time or in the amount required by this section, the 228 taxpayer is liable for penalties and interest on the difference 229 between the minimum amount due as a payment and the amount of 230 the quarter-monthly payment actually and timely paid, except 231 insofar as the taxpayer has previously made payments for that 232

Florida Senate - 2022 SB 1886 30-00953-22 20221886__ Page 9 of 28 CODING: Words stricken are deletions; words underlined are additions. month to the department in excess of the minimum payments 233 previously due under this section. 234 (

i) If any payment provided for in this

section exceeds the 235 taxpayer’s liabilities under this section, as shown on an 236 original monthly return, the department must, if requested by 237 the taxpayer, issue to the taxpayer a credit memorandum no later 238 than 30 days after the date of payment. The credit evidenced by 239 the credit memorandum may be assigned by the taxp ayer to a 240 similar taxpayer under this chapter, in accordance with rules 241 adopted by the department.

If a request for a credit memorandum 242 is not made, the taxpayer may credit the excess payment against 243 tax liability subsequently to be remitted to the departm ent 244 under this chapter, in accordance with rules adopted by the 245 department. If the department subsequently determines that all 246 or any part of the credit taken was not actually due to the 247 taxpayer, the taxpayer’s discount must be reduced, if necessary, 248 to reflect the difference between the credit taken and that 249 actually due, and the taxpayer is liable for penalties and 250 interest on the difference. 251 (

j) If a taxpayer fails to sign a return within 30 days 252 after the proper notice and demand for signature by the 253 department is received by the taxpayer, the return is considered 254 valid and any amount shown to be due on the return is deemed 255 assessed. 256

(4) INFUSER INFORMATION RETURNS.—If deemed necessary for 257 the administration of this section, the department may adopt 258 rules requiring infusers to file information returns regarding 259 the sale of cannabis by infusers to dispensaries. The department 260 may require infusers to file all such returns by electronic 261

Florida Senate - 2022 SB 1886 30-00953-22 20221886__ Page 10 of 28 CODING: Words stricken are deletions; words underlined are additions. means. 262

(5) DEPOSIT OF PROCEEDS.—All moneys received by the 263 department under this

section must be deposited into the 264 Alcoholic Beverage, Marijuana, and Tobacco Trust Fund. 265

(6) ADMINISTRATION AND ENFORCEMENT.— 266 (

a) The department has the power to administer and enforce 267 this section; to collect all taxes, penalties, and interest due 268 hereunder; to dispose of such taxes, penalties, and interest as 269 provided in this section; and to issue credit memoranda when 270 warranted due to erroneous payment of such taxes, penalties, or 271 interest. 272 (

b) In the administration of and compliance with this 273 section, the department and persons who are subject to this 274

section have the same rights, remedies, privileges, immunities, 275 powers, and duties; are subject to the same conditions, 276 restrictions, limitations, penalties, and

definitions of terms; 277 and shall employ the same procedures as are prescribed in 278

chapter 212 which are not inconsistent with this section. 279

(7) INVOICES.— 280 (

a) Every sales invoice for cannabis issued by a cultivator 281 to a cannabis business establishment must contain all of the 282 following information: 283 1. The cultivator’s certificate of registration number 284 assigned under this section. 285 2. The date the invoice was issued. 286 3. The invoice number. 287 4. The purchaser’s name and address. 288 5. The selling price. 289 6. The amount of cannabis, cannabis concentrate, or 290

Florida Senate - 2022 SB 1886 30-00953-22 20221886__ Page 11 of 28 CODING: Words stricken are deletions; words underlined are additions. cannabis-infused product. 291 7. Any other information the department deems necessary for 292 the administration of this section. 293 (

b) Cultivators shall retain the invoices to be presented 294 upon demand for inspection by the department. 295 (8)

(1) ARREST; SEARCH AND SEIZURE WITHOUT WARRANT.—Any duly 296 authorized employee of the department may arrest without warrant 297 any person committing in his or her presence a violation of this 298 section; may without a search warrant inspect all cannabis 299 located in any place of business; may seize any cannabis in the 300 possession of the retailer in violation of this chapter; and may 301 seize any cannabis on which the tax imposed by this

section has 302 not been paid. The cannabis so seized is subject to confiscation 303 and forfeiture as provided in subsections (9) and (10) (2) and 304 (3). 305 (9)

(2) SEIZURE AND FORFEITURE.—After seizing any cannabis 306 as provided in subsection (10) (3), the department must hold a 307 hearing and determine whether the retailer was properly 308 registered to sell the cannabis at the time of its seizure by 309 the department. The department shall give at least 20 days’ 310 notice of the time and place of the hearing to the owner of the 311 cannabis, if the owner is known, and also to the person in whose 312 possession the cannabis was found, if that person is known and 313 if the person in possession is not the owner of the cannabis.

If 314 neither the owner nor the person in possession of the cannabis 315 is known, the department must publish the time and place of the 316 hearing at least once each week for 3 consecutive weeks in a 317 newspaper of general circulation in the county where the hearing 318 is to be held. If, as a result of the hearing, the department 319

Florida Senate - 2022 SB 1886 30-00953-22 20221886__ Page 12 of 28 CODING: Words stricken are deletions; words underlined are additions. determines that the retailer was not properly registered at the 320 time the cannabis was seized, the department mus t enter an order 321 declaring the cannabis confiscated and forfeited to the state, 322 to be held by the department for disposal by it as provided in 323 subsection (10) (3).

The department must give notice of the 324 order to the owner of the cannabis, if the owner is k nown, and 325 also to the person in whose possession the cannabis was found, 326 if that person is known and if the person in possession is not 327 the owner of the cannabis. If neither the owner nor the person 328 in possession of the cannabis is known, the department mu st 329 publish the order at least once each week for 3 consecutive 330 weeks in a newspaper of general circulation in the county where 331 the hearing was held in accordance with

chapter 50. 332 (10)

(3) SEARCH WARRANT; ISSUANCE AND RETURN; PROCESS; 333 CONFISCATION OF CANNABIS; FORFEITURES.— 334 (

a) If a law enforcement officer of this state or any duly 335 authorized officer or employee of the department has reason to 336 believe that any violation of this

section or a rule adopted 337 pursuant thereto has occurred and that the person violating this 338

section or rule has in that person’s possession any cannabis in 339 violation of this

section or a rule adopted pursuant thereto, 340 that law enforcement officer or officer or employee of the 341 department may file or cause to be filed his or her com plaint in 342 writing, verified by affidavit, with any court within whose 343 jurisdiction the premises to be searched is situated, stating 344 the facts upon which the belief is founded, the premises to be 345 searched, and the property to be seized, and procure a search 346 warrant and execute that warrant. Upon the execution of the 347 search warrant, the law enforcement officer or officer or 348

Florida Senate - 2022 SB 1886 30-00953-22 20221886__ Page 13 of 28 CODING: Words stricken are deletions; words underlined are additions. employee of the department executing the search warrant shall 349 return the warrant to the court that issued the warrant, 350 together with an inventory of the property taken under the 351 warrant. The court must then issue process against the owner of 352 the property if the owner is known; otherwise, process must be 353 issued against the person in whose possession the property is 354 found, if that person is known.

In case of inability to serve 355 process upon the owner or the person in possession of the 356 property at the time of its seizure, notice of the proceedings 357 before the court must be given in the same manner as required by 358 the law governing cases of attachment. Upon the return of the 359 process duly served or upon the posting or publishing of notice 360 made, as applicable, the court or jury, if a jury is demanded, 361 shall determine whether the property seized was held or 362 possessed in violation of this

section or a rule adopted 363 pursuant thereto. If a violation is found, the court must enter 364 a judgment confiscating the property and forfeiting it to the 365 state and ordering its delivery to the department. In addition, 366 the court may tax and assess the costs of the proceedi ngs. 367 (

b) If any cannabis has been declared forfeited to the 368 state by the department, as provided in subsection (9) (2) and 369 this section, and if all proceedings for the judicial review of 370 the department’s decision have concluded, the department shall, 371 to the extent that its decision is sustained on review, destroy 372 or maintain such cannabis or may use it in an undercover 373 capacity. 374 (

c) The department may, before any destruction of cannabis, 375 permit the true holder of trademark rights in the cannabis to 376 inspect such cannabis in order to assist the department in any 377

Florida Senate - 2022 SB 1886 30-00953-22 20221886__ Page 14 of 28 CODING: Words stricken are deletions; words underlined are additions. investigation regarding such cannabis. 378 (11)

(4) CANNABIS RETAILERS; PURCHASE AND POSSESSION OF 379 CANNABIS.—Cannabis retailers may purchase cannabis for resale 380 only from cannabis business establishments as authorized by this 381 chapter. 382

(12) RULES.—The department may adopt rules necessary for 383 the enforcement of this section. 384

Section

Section 566.806, Florida Statutes, is created to 385 read: 386 566.806 Cannabis purchaser excise tax.— 387

(1) DEFINITIONS.—As used in his section, the term: 388 (a) “Adjusted delta-9-tetrahydrocannabinol level” means, 389 for a delta-9-tetrahydrocannabinol-dominant product, the sum of 390 the percentage of delta-9-tetrahydrocannabinol plus .877 391 multiplied by the percentage of tetrahydrocannabinolic a cid. 392 (b) “Cannabis-infused product” means a beverage, food, oil, 393 ointment, tincture, topical formulation, or other product 394 containing cannabis which is not intended to be smoked. 395 (c) “Cannabis retailer” means a dispensing organization 396 that sells cannabis for use and not for resale. 397 (d) “Department” means the Department of Revenue. 398 (e) “Infuser organization” or “infuser” means a facility 399 operated by an organization or a business that is licensed by 400 the Department of Business and Professional Regulation to 401 directly incorporate cannabis or cannabis concentrate into a 402 product formulation to produce a cannabis-infused product. 403 (f) “Purchase price” means the consideration paid for a 404 purchase of cannabis, valued in money, including cash, gift 405 cards, credits, and property, which must be determined without 406

Florida Senate - 2022 SB 1886 30-00953-22 20221886__ Page 15 of 28 CODING: Words stricken are deletions; words underlined are additions. any deduction on account of the cost of materials used, labor or 407 service costs, or any other expense. The term does not include 408 consideration paid for: 409 1. Any charge for a payment that is not honored by a 410 financial institution; 411 2. Any finance or credit charge, penalty or charge for 412 delayed payment, or discount for prompt payment; or 413 3. Any amount added to a purchaser’s bill because of 414 charges made under the tax imposed by this

section or any other 415 sales or use tax. 416 (g) “Purchaser” means a person who acquires cannabis for a 417 valuable consideration. 418 (h) “Taxpayer” means a cannabis retailer who is required to 419 collect the tax imposed under this section. 420

(2) TAX IMPOSED.— 421 (

a) Beginning January 1, 2023, an excise tax shall be 422 imposed upon purchasers for the privilege of using cannabis at 423 the following rates: 424 1. Any cannabis, other than a cannabis-infused product, 425 with an adjusted delta-9-tetrahydrocannabinol level at or below 426 35 percent shall be taxed at a rate of 10 percent of the 427 purchase price. 428 2. Any cannabis, other than a cannabis-infused product, 429 with an adjusted delta-9-tetrahydrocannabinol level above 35 430 percent shall be taxed at a rate of 25 percent of the purchase 431 price. 432 3. A cannabis-infused product shall be taxed at a rate of 433 20 percent of the purchase price. 434 (

b) The purchase of any product that contains any amount of 435

Florida Senate - 2022 SB 1886 30-00953-22 20221886__ Page 16 of 28 CODING: Words stricken are deletions; words underlined are additions. cannabis or any derivative thereof is subject to the tax under 436 paragraph (

a) on the full purchase price of the product. 437 (

c) The tax imposed under this

section may not be imposed 438 on cannabis that is sold for medical use as defined in s. 439 381.986 and purchased by a person listed on the Medical 440 Marijuana Use Registry. The tax imposed by this

section may not 441 be imposed with respect to any transaction in int erstate 442 commerce, to the extent such transaction may not, under the 443 Constitution and statutes of the United States, be made the 444 subject of taxation by the state. 445 (

d) The tax imposed under this

section is in addition to 446 all other occupation, privilege, or excise taxes imposed by the 447 state or by any of its political subdivision. 448 (

e) The tax imposed under this

section may not be imposed 449 on any purchase if the cannabis retailer is prohibited by 450 federal or State Constitution, treaty, convention, statute, or 451 court decision from collecting such tax from the purchaser. 452

(3) BUNDLING OF TAXABLE AND NONTAXABLE ITEMS; PROHIBITION; 453 TAXATION.—If a cannabis retailer sells for one price cannabis, 454 cannabis concentrate, or cannabis-infused products in 455 combination or bundled with items that are not subject to tax 456 under this section, the tax shall be imposed on the purchase 457 price of the entire bundled product. 458

(4) COLLECTION OF TAX.— 459 (

a) The tax imposed by this

section shall be collected from 460 the purchaser by the cannabis retailer at the rate stated in 461 subsection (2) and shall be remitted to the department as 462 provided in this section. All sales to a purchaser who is not a 463 cardholder under s. 381.986 shall be subject to tax collection. 464

Florida Senate - 2022 SB 1886 30-00953-22 20221886__ Page 17 of 28 CODING: Words stricken are deletions; words underlined are additions. Cannabis retailers shall collect the tax by adding the tax to 465 the amount of the purchase price. The tax imposed by this 466

section shall, when collected, be stated on the sales invoice as 467 a distinct item separate from the purchase price of the 468 cannabis. 469 (

b) If a cannabis retailer collects cannabis purchaser 470 excise tax measured by a purchase price that is not subject to 471 such excise tax, or if a cannabis retailer collects more from 472 the purchaser than the amount of excise tax required on the 473 transaction, the purchaser has a legal right to claim a refun d 474 of that amount from the cannabis retailer. If the retailer does 475 not refund the excess amount to the purchaser, the cannabis 476 retailer is liable to pay such amount to the department. 477 (

c) A person purchasing cannabis that is subject to tax 478 under this

section who has not been charged the tax imposed by 479 subsection (2) shall make payment of such tax in the form and 480 manner provided by the department no later than the 20th day of 481 the month following the month of the cannabis purchase. 482

(5) REGISTRATION OF RETAILERS.—Every cannabis retailer 483 required to collect the tax under this

section shall apply to 484 the department for a certificate of registration. All 485 applications for certificate of registration must be made by 486 electronic means in the form and manner prescribed b y the 487 department. For that purpose, the provisions of

chapter 212 are 488 incorporated into this

section to the extent such provisions are 489 not inconsistent with this section. In addition, a certificate 490 of registration may not be issued under this

section unles s the 491 applicant is licensed under this chapter. 492

(6) TAX COLLECTED AS DEBT OWED TO STATE.—A cannabis 493

Florida Senate - 2022 SB 1886 30-00953-22 20221886__ Page 18 of 28 CODING: Words stricken are deletions; words underlined are additions. retailer required to collect the tax imposed by this

section is 494 liable to the department for the tax regardless of whether the 495 tax has been collected by the cannabis retailer, and such tax 496 constitutes a debt owed by the cannabis retailer to the state. 497 To the extent that a cannabis retailer required to collect the 498 tax imposed by this

section has actually collected that tax, the 499 tax is held in trust for the benefit of the department. 500

(7) RETURN AND PAYMENT.— 501 (

a) Each cannabis retailer required or authorized to 502 collect the tax imposed by this

section shall file a return with 503 the department, by electronic means, on or before the 20th day 504 of each month for the preceding calendar month which contains 505 the following information: 506 1. The cannabis retailer’s name. 507 2. The address of the cannabis retailer’s principal place 508 of business and, if different, the address of the principal 509 place of business where the cannabis retailer is engaged in the 510 business of selling cannabis subject to tax under this section. 511 3. The total purchase price received by the cannabis 512 retailer for cannabis subject to tax under this section. 513 4.

The amount of tax due at each rate. 514 5. The signature of the cannabis retailer. 515 6. Any other information the department may reasonably 516 require. 517 (

b) All returns required to be filed and payments required 518 to be made under this

section must be submitted by electronic 519 means. Cannabis retailers who demonstrate hardshi p in paying 520 electronically may petition the department to waive this 521 requirement. 522

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c) Any amount that is required to be shown or reported on 523 any return or other document under this

section must, if the 524 amount is not a whole dollar amount, be increased to t he nearest 525 whole dollar amount if the fractional part of a dollar is $0.50 526 or more and decreased to the nearest whole dollar amount if the 527 fractional part of a dollar is less than $0.50. If a total 528 amount of less than $1 is payable, refundable, or creditab le, 529 the amount must be disregarded if it is less than $0.50 and must 530 be increased to $1 if it is $0.50 or more. 531 (

d) A cannabis retailer making the return required by this 532

section shall also pay to the department the amount of tax 533 imposed by this section, less a discount of 1.75 percent, which 534 may not exceed the $1,000 allowed per return period to reimburse 535 the cannabis retailer for the expenses incurred in keeping 536 records, collecting and remitting tax, preparing and filing 537 returns, and supplying data to the department upon request. 538 However, a discount may not be claimed by a cannabis retailer in 539 the following instances: 540 1. On returns not timely filed and for taxes not timely 541 remitted. 542 2. On returns that are not filed electronically. 543 3.

For any payment that is not made electronically, unless 544 a waiver has been granted under this section. 545 (

e) A cannabis retailer who ceases to engage in business 546 subject to the requirements of this

section shall file a final 547 return with the department within 1 month after disconti nuing 548 the business, notwithstanding any other provision of this 549

section concerning the time within which a cannabis retailer may 550 file a return. 551

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f) Each cannabis retailer shall make estimated payments to 552 the department on or before the 7th, 15th, 22nd, and last day of 553 the month during which tax liability to the department is 554 incurred. The payments must be in an amount not less than the 555 lower of either 22.5 percent of the cannabis retailer’s actual 556 tax liability for the month or 25 percent of the cannabis 557 retailer’s actual tax liability for the same calendar month of 558 the preceding year. 559 (

g) The amount of the quarter-monthly payments must be 560 credited against the final tax liability of the cannabis 561 retailer’s return for that month. If any such quarter -monthly 562 payment is not paid at the time or in the amount required by 563 this section, the cannabis retailer is liable for penalties and 564 interest on the difference between the minimum amount due as a 565 payment and the amount of the quarter-monthly payment actually 566 and timely paid, except insofar as the cannabis retailer has 567 previously made payments for that month to the department in 568 excess of the minimum payments previously due as provided in 569 this section. 570 (

h) If any payment provided for in this

section exceeds the 571 taxpayer’s liabilities under this section, as shown on an 572 original monthly return, the department must, if requested by 573 the taxpayer, issue to the taxpayer a credit memorandum no later 574 than 30 days after the date of payment. The credit evidenced by 575 the credit memorandum may be assigned by the taxpayer to a 576 similar taxpayer under this section, in accordance with rules 577 adopted by the department. If a request for a credit memorandum 578 is not made, the taxpayer may credit the excess payment against 579 tax liability subsequently to be remitted to the department 580

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i) If the department subsequently determines that all or 583 any part of the credit taken was not actually due to the 584 taxpayer, the taxpayer’s discount must be reduced, if necessary, 585 to reflect the difference between the credit taken and that 586 actually due, and that taxpayer is liable for penalties and 587 interest on the difference. 588 (

j) If a cannabis retailer fails to sign a return within 30 589 days after receiving the department’s notice and demand for 590 signature, the return is considered valid and any amount shown 591 to be due on the return is deemed assessed. 592

(8) DEPOSIT OF PROCEEDS.—All moneys received by the 593 department under this

section must be paid into the Cannabis 594 Regulation Fund. 595

(9) RECORDKEEPING; BOOKS AND RECORDS.— 596 (

a) Every retailer of cannabis, regardless of whether the 597 retailer has obtained a certificate of registration under 598 subsection (5), shall keep complete and accurate records of 599 cannabis held, purchased, sold, or otherwise disposed of and 600 shall preserve and keep all invoices, bills of lading, sales 601 records, and copies of bills of sale, returns, and other 602 pertinent papers and documents relating to the purchase, sale, 603 or disposition of cannabis.

Such records need not be maintained 604 on the licensed premises but must be maintained in this state. 605 However, all original invoices or copies of invoices covering 606 cannabis purchases must be retained on the licensed premises for 607 a period of 90 days after such purchase, unless the department 608 has granted a waiver in response to a written request in cases 609

Florida Senate - 2022 SB 1886 30-00953-22 20221886__ Page 22 of 28 CODING: Words stricken are deletions; words underlined are additions. where records are kept at a central business location within 610 this state. The department shall adopt rules regarding the 611 eligibility for a waiver, revocation of a waiver, and 612 requirements and standards for maintenance and accessibility of 613 records located at a central location under a waiver provided 614 under this section. 615 (

b) Books, records, papers, and documents that are required 616 by this

section to be kept are, at all times during the usual 617 business hours of the day, subject to inspection by the 618 department or its duly authorized agents and employees. The 619 books, records, papers, and documents for any period for which 620 the department is authorized to issue a notice of tax liability 621 must be preserved until the expiration of that period. 622

(10) VIOLATIONS AND PENALTIES.— 623 (

a) When the amount due is under $300, any cannabis 624 retailer who fails to file a return, willfully fails or refuses 625 to make payment of the tax imposed by this section, or files a 626 fraudulent return; any officer or agent of a corporation engaged 627 in the business of selling cannabis to purchasers located in 628 this state who signs a fraudulent return filed on behalf of the 629 corporation; or any accountant or other agent who knowingly 630 enters false information on the return of any taxpayer under 631 this

section commits a felony of the third degree, punishable as 632 provided in s. 775.082, s. 775.083, or s. 775.084. 633 (

b) When the amount due is $300 or more, a cannabis 634 retailer who files or causes to be filed a fraudulent return; 635 any officer or agent of a corporation engaged in the business of 636 selling cannabis to purchasers located in this state who files 637 or causes to be filed or signs or causes to be signed a 638

Florida Senate - 2022 SB 1886 30-00953-22 20221886__ Page 23 of 28 CODING: Words stricken are deletions; words underlined are additions. fraudulent return filed on behalf of the corporation; or any 639 accountant or other agent who knowingly enters false information 640 on the return of any taxpayer under this

section commits a 641 felony of the second degree, punishable as provided in s. 642 775.082, s. 775.083, or s. 775.084. 643 (

c) A person who violates any provision of subsection (5), 644 fails to keep books and records as required under this section, 645 or willfully violates a rule of the department for the 646 administration and enforcement of this

section commits a felony 647 of the third degree, punishable as provided in s. 775.082, s. 648 775.083, or s. 775.084. A person commits a separate offense on 649 each day that he or she engages in business in violation of 650 subsection (5) or of a department rule for the administration 651 and enforcement of this section. If a person fails to produce 652 the books and records for inspection by the department upon 653 request, a prima facie presumption arises that the person has 654 failed to keep books and records as required under this section. 655 A person who is unable to rebut this presumption is in violation 656 of this

section and is subject to the penalties provided in this 657 section. 658 (

d) A person who violates any provision of subsection (5), 659 fails to keep books and records as required under this section, 660 or willfully violates a rule of the department for the 661 administration and enforcement of this

section commits a civil 662 violation and may be fined up to $5,000. If a person fails to 663 produce books and records for inspection by the department upon 664 request, a prima facie presumption arises that the person has 665 failed to keep books and records as required under this section. 666 A person who is unable to rebut this presumption is in violation 667

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section and is subject to the penalties provided in this 668 section. A person commits a separate offense on each day that he 669 or she engages in business in violation of subsection (5). 670 (

e) A person who fails to keep books and records or fails 671 to produce books and records for inspection, as required by 672 subsection (9), is liable to pay to the department a penalty of 673 $1,000 for the first failure to keep books and records or 674 failure to produce books and records for inspection, as required 675 by subsection (9), and $3,000 for each subsequent failure to 676 keep books and records or failure to produce book s and records 677 for inspection, as required by subsection (9). 678 (

f) A person who knowingly acts as a cannabis retailer in 679 this state without first having obtained a certificate of 680 registration in compliance with subsection (5) commits a felony 681 of the third degree, punishable as provided in s. 775.082, s. 682 775.083, or s. 775.084. 683 (g)1. A person commits the offense of tax evasion under 684 this

section if he or she knowingly attempts in any manner to 685 evade or defeat the tax imposed on him or her or on any other 686 person, or the payment thereof, and he or she commits an 687 affirmative act in furtherance of the evasion. As used in this 688 paragraph, “affirmative act in furtherance of the evasion” means 689

an act designed in whole or in part to conceal, misrepresent, 690 falsify, or manipulate any material fact or tamper with or 691 destroy documents or materials related to a person’s tax 692 liability under this section. Two or more acts of sales tax 693 evasion may be charged as a single count in any indictment, 694 information, or complaint. The amount of tax deficiency may be 695 aggregated for purposes of determining the amount of tax that is 696

Florida Senate - 2022 SB 1886 30-00953-22 20221886__ Page 25 of 28 CODING: Words stricken are deletions; words underlined are additions. attempted to be or is evaded, and the period between the first 697 and last acts may be alleged as the date of the offense. 698 a. If the amount of the tax that is evaded or attempted to 699 be evaded is less than $500, a person commits a felony of the 700 third degree, punishable as provided in s. 775.082, s. 775.083, 701 or s. 775.084. 702 b.

If the amount of the tax that is evaded or attempted to 703 be evaded is $500 or more but less than $10,000, a person 704 commits a felony of the second degree, punishable as provided in 705 s. 775.082, s. 775.083, or s. 775.084. 706 c. If the amount of tax that is evaded or attempted to be 707 evaded is $10,000 or more but less than $100,000, a person 708 commits a felony of the second degree, punishable as provided in 709 s. 775.082, s. 775.083, or s. 775.084. 710 d.

If the amount of tax that is evaded or attempted to be 711 evaded is $100,000 or more, a person commits a felony of the 712 first degree, punishable as provided in s. 775.08 2, s. 775.083, 713 or s. 775.084. 714 2.a. A person who knowingly sells, purchases, installs, 715 transfers, possesses, uses, or accesses any automated sales 716 suppression device, zapper, or phantom-ware in this state 717 commits a felony of the second degree, punishable as provided in 718 s. 775.082, s. 775.083, or s. 775.084. 719 b.

As used in this subparagraph, the term: 720 (I) “Automated sales suppression device” or “zapper” means 721 a software program that falsifies the electronic records of an 722 electronic cash register or other point-of-sale system, 723 including, but not limited to, transaction data and transaction 724 reports. The term includes the software program, any device that 725

Florida Senate - 2022 SB 1886 30-00953-22 20221886__ Page 26 of 28 CODING: Words stricken are deletions; words underlined are additions. carries the software program, or an Internet link to the 726 software program. 727 (II) “Electronic cash register” means a device that keeps a 728 register or supporting documents through the use of an 729 electronic device or computer system designed to record 730 transaction data for the purpose of computing, compiling, or 731 processing retail sales transaction data in any manner. 732 (III) “Phantom-ware” means a hidden programming option 733 embedded in the operating system of an electronic cash register 734 or hardwired into an electronic cash register which can be used 735 to create a second set of records or which can eliminate or 736 manipulate transaction records in an electronic cash register. 737 (IV) “Transaction data” includes items purchased by a 738 purchaser; the price of each item; a taxability determination 739 for each item; a segregated tax amount for each taxed item; the 740 amount of cash or credit tendered; the net amount returned to 741 the customer in change; the date and time of the purchase; the 742 name, address, and identification number of the vendor; and the 743 receipt or invoice number of the transaction. 744 (V) “Transaction report” means a report that documents, 745 without limitation, the sales, taxes, or fees collected and the 746 media and discount voids at an electronic cash register and that 747 is printed on a cash register tape at the end of a day or shift, 748 or a report that documents every action at an electronic cash 749 register and is stored electronically. 750 c.

A prosecution for any act in violation of this 751 subparagraph may be commenced at any time within 5 years of the 752 commission of that act. 753 (

h) The department may adopt rules to administer the 754

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i) A person whose principal place of business is in this 756 state and who is charged with a violation under this

section 757 shall be tried in the county where his or her principal place of 758 business is located unless he or she asserts a right to be tri ed 759 in another venue. 760 (

j) Except as otherwise provided in paragraph (h), a 761 prosecution for a violation described in this subsection may be 762 commenced within 3 years after the commission of the act 763 constituting the violation. 764

(11) ADMINISTRATION AND ENFORCEMENT.— 765 (

a) The department has power to administer and enforce this 766 section, to collect all taxes and penalties due hereunder, to 767 dispose of such taxes and penalties as provided in this section, 768 and to issue credit memoranda when warranted due to erroneous 769 payment of such taxes or penalties. 770 (

b) In the administration of and compliance with this 771 section, the department and persons who are subject to this 772

section have the same rights, remedies, privileges, immunities, 773 powers, and duties; are subject to the same conditions, 774 restrictions, limitations, penalties, and

definitions of terms; 775 and shall employ the same procedures as are prescribed in 776

chapter 212 which are not inconsistent with this section. 777

(12) RULEMAKING.—The department may adopt rules and 778 prescribe forms relating to the administration and enforcement 779 of this section. 780

Section 7. Except as otherwise expressly provided in this 781 act, this act shall take effect on the same date that SB ____ or 782 similar legislation takes effect, if such legislation is adopted 783

Florida Senate - 2022 SB 1886 30-00953-22 20221886__ Page 28 of 28 CODING: Words stricken are deletions; words underlined are additions. in the same legislative session or an extension thereof and 784 becomes a law. 785