Florida Senate - 2021 SB 1940 By Senator Powell 30-01238-21 20211940__ Page 1 of 8 CODING: Words stricken are deletions; words underlined are additions. A bill to be entitled 1

An act relating to taxes and fees; creating

Part I of 2 ch. 566, F.S., entitled “Excise Tax”; defining terms; 3 imposing an excise tax on recreational marijuana; 4 providing for inflation adjustments to the tax rate; 5 providing for collection of the tax; providing for 6 distribution of tax revenues; requiring an annual 7 report concerning tax revenues; providing criminal 8 penalties; amending s. 566.036, F.S.; authorizing an 9 application fee for marijuana establishments; 10 authorizing applicants to receive more than one type 11 of marijuana establishment license, providing an 12 exception; amending s. 566.037, F.S.; conforming 13 provisions to changes made by the act; providing for 14 rulemaking concerning application fees; providing 15 effective dates. 16 17 Be It Enacted by the Legislature of the State of Florida: 18 19

Section 1.

Part I of

chapter 566, Florida Statutes, as 20 created by SB ___, 2021 Regular Session, is redesignated as

Part 21 II, and a new

Part I of that chapter, consisting of sections 22 566.011 through 566.015, is created to read: 23

CHAPTER 566 24 RECREATIONAL MARIJUANA 25

PART I 26 EXCISE TAX 27 566.011

Definitions.—As used in this part, the term: 28 (1) “Department” means the Department of Business and 29

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Professional Regulation. 30 (2) “Division” means the Division of Alcoholic Beverages, 31 Marijuana, and Tobacco of the department. 32 (3) “Marijuana” means all parts of the plant of the genus 33 cannabis, whether growing or not, the seeds thereof, the resin 34 extracted from any part of the plant, and every compound, 35 manufacture, salt, derivative, mixture, or preparation of the 36 plant, its seeds, or its resin, including marijuana concentrate. 37 The term does not include industrial hemp, fiber produced from 38 the stalks, oil, cake made from the seeds of the plant, 39 sterilized seed of the plant that is incapable of germination, 40 or the weight of any ingredient combined with marijuana to 41 prepare topical or oral administrations, food, drink, or any 42 other product. 43 (4) “Marijuana cultivation facility” means an entity 44 licensed to cultivate, prepare, and package and sell marijuana 45 to retail marijuana stores, to marijuana product manufacturing 46 facilities, and to other marijuana cultivation facilities, but 47 not to consumers. 48 (5) “Marijuana establishment” means a marijuana cultivation 49 facility, marijuana testing facility, marijuana product 50 manufacturing facility, or retail marijuana store. 51 (6) “Marijuana product manufacturing facility” means an 52 entity licensed to: 53 (

a) Purchase marijuana; 54 (

b) Manufacture, prepare, and package marijuana products; 55 or 56 (

c) Sell marijuana and marijuana products to other 57 marijuana product manufacturing facilities and to retail 58

Florida Senate - 2021 SB 1940 30-01238-21 20211940__ Page 3 of 8 CODING: Words stricken are deletions; words underlined are additions. marijuana stores, but not to consumers. 59 (7) “Marijuana products” means concentrated marijuana and 60 products that consist of marijuana and other ingredients and are 61 intended for use or consumption, including, but not limited to, 62 edible products, ointments, and tinctures. 63 (8) “Marijuana testing facility” means an entity licensed 64 to analyze and certify the safety and potency of marijuana. 65 (9) “Retail marijuana store” means an entity licensed to 66 purchase marijuana from a marijuana cultivation facility and 67 marijuana products from a marijuana product manufacturing 68 facility and to sell marijuana and marijuana products to 69 consumers. 70 566.012 Excise tax on marijuana.— 71

(1) An excise tax is imposed on the sale or transfer of 72 marijuana from a marijuana cultivation facility to a retail 73 marijuana store or marijuana product manufacturing facility. 74 Each marijuana cultivation facility shall pay an excise tax at 75 the rate of $50 per ounce, or proportionate part thereof, on 76 marijuana that is sold or transferred from a marijuana 77 cultivation facility pursuant to

part II. 78

(2) The excise tax rate under subsection (1) shall be 79 adjusted annually for inflation. 80 (

a) Beginning in 2023, on or about February 15 of each 81 year, the department shall calculate the adjusted excise tax 82 rates by multiplying the rates in effect on the calculation date 83 by an inflation index computed as provided in paragraph (b). The 84 adjusted rates must be rounded to the nearest penny and become 85 effective on the first day of July immediately after the 86 calculation. The division shall publish the annually adjusted 87

Florida Senate - 2021 SB 1940 30-01238-21 20211940__ Page 4 of 8 CODING: Words stricken are deletions; words underlined are additions. excise tax rates and shall provide all necessary forms and 88 reports. 89 (

b) The inflation index is the Consumer Price Index for All 90 Urban Consumers, U.S. City Average, or successor reports, as 91 reported by the United States Department of Labor, Bureau of 92 Labor Statistics, for the calendar year ending on December 31 93 immediately before the calculation date, divided by the Consumer 94 Price Index for the previous calendar year. The inflation index 95 may not be less than one. 96 (c)1.

A marijuana cultivation facility subject to the 97 licensing requirement of s. 566.036 shall file, on or before the 98 last day of each month, a return on a form prescribed and 99 furnished by the division together with payment of the tax due 100 under this part. The return must report all marijuana products 101 held, purchased, manufactured, brought in, or caused to be 102 brought in from outside the state or shipped or transported to a 103 retail marijuana store or marijuana product manufacturing 104 facility within the state during the previous calendar month.

A 105 marijuana cultivation facility shall keep a complete and 106 accurate record at its principal place of business to 107 substantiate all receipts and sales of marijuana products. 108 2. The return must include further information as the 109 division may prescribe.

Tax previously paid on marijuana 110 products that are returned to a marijuana establishment because 111 the product has become unfit for use, sale, or consumption and 112 for marijuana products that are returned to a marijuana 113 cultivation facility that are subsequently destroyed by the 114 marijuana cultivation facility may be taken as a credit on a 115 subsequent return. The division may either witness the 116

Florida Senate - 2021 SB 1940 30-01238-21 20211940__ Page 5 of 8 CODING: Words stricken are deletions; words underlined are additions. destruction of the product or may accept another form of proof 117 that the product has been destroyed by the marijuana cultivation 118 facility. 119 3.

A person who is not a marijuana cultivation facility 120 licensed pursuant to s. 566.036 who imports, receives, or 121 otherwise acquires marijuana products for use or consumption in 122 the state from a person other than a licensed marijuana 123 cultivation facility shall file, on or before the last day of 124 the month after each month in which marijuana products were 125 acquired, a return on a form prescribed by the division together 126 with payment of the tax imposed by this part at the rate 127 provided in subsection (1).

The return must report the quantity 128 of marijuana products imported, received, or otherwise acquired 129 from a person other than a licensed marijuana cultivation 130 facility during the previous calendar month and additional 131 information that the division may require. 132 (

d) If a marijuana cultivation facility fails to make tax 133 payments as required by this section, the division may revoke 134 the marijuana cultivation facility’s license. 135 566.013 Distribution of revenues.—On or before the last day 136 of each month, the Chief Financial Officer shall transfer 15 137 percent of the revenue received by the division during the 138 preceding month pursuant to the tax imposed by s. 566.012 to the 139 Alcoholic Beverage, Marijuana, and Tobacco Trust Fund 140 established under s. 561.025.

On or before the last day of each 141 month, the Chief Financial Officer shall transfer the remainder 142 of the revenues to the Child Care Trust Fund. 143 566.014 Annual report.—The division shall report annually 144 beginning January 30, 2023, the amount of tax revenue collected 145

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d) If the division does not issue a license to an 175 applicant within 90 days after receipt of the application filed 176 in accordance with s. 566.036 and does not notify the applicant 177 of the specific reason for denial, in writing and within 90 days 178 after receipt of the application, the applicant may resubmit its 179 application directly to the locality and the locality may issue 180 an annual license to the applicant.

A locality issuing a license 181 to an applicant shall do so within 90 days after receipt of the 182 resubmitted application unless the locality finds, and notifies 183 the applicant, that the applicant is not in compliance with an 184 ordinance, rule, or regulation made pursuant to s. 566.035 or 185 paragraph (

b) in effect at the time the application is 186 resubmitted. The locality shall notify the division if the 187 locality issues an annual license to the applicant. If an 188 application is submitted to a locality under this paragraph, the 189 division shall forward to the locality the application fee paid 190 by the applicant to the division upon request by the locality. 191

Section 4. Effective upon this act becoming a law, 192 paragraph (

b) of subsection (2) of

section 6 of SB ___, 2021 193 Regular Session, is amended to read: 194 Rulemaking.—This

section shall take effect upon this act 195 becoming a law. 196

(2) Rules adopted pursuant to this

section must include: 197 (

b) The form and content of applications for each type of 198 marijuana establishment license, and registration renewal forms, 199 and renewal fee schedules, except that an application, 200 licensing, or renewal fee may not exceed $5,000. 201

Section 5. Except as otherwise expressly provided in this 202 act, and except for this section, which shall take effect upon 203

Florida Senate - 2021 SB 1940 30-01238-21 20211940__ Page 8 of 8 CODING: Words stricken are deletions; words underlined are additions. this act becoming a law, this act shall take effect on the same 204 date that SB ___ or similar legislation takes effect, if such 205 legislation is adopted in the same legislative session or an 206 extension thereof and becomes a law. 207