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Bill against counterfeit cigarettes finds favor

By JENNIFER LIBERTO
Published March 31, 2004

TALLAHASSEE - Possessing a couple of cartons of counterfeit cigarettes could land you in prison for up to five years under legislation backed by tobacco companies and overwhelmingly approved by legislative committees this week.

The war on terrorism was cited as one reason for the stiff penalty, which would not apply for possession of fewer than two cartons.

"Reports out of Washington show illegal cigarettes as a funding source for some that have been tied to terrorist organizations," said sponsor Sen. Mike Haridopolos, R-Melbourne.

The bill requires that cigarettes exported to other states be stamped to prove the excise tax was paid in the destination state. Failure to follow stamping, permitting or reporting requirements would be a third-degree felony.

The bill also tightens reporting requirements for cigarette wholesalers and dealers in Florida.

The legislation defines counterfeit cigarettes as tobacco products with fake labels, without tax stamps or with fake tax stamps.

The Senate Committee on Commerce, Economic Opportunities and Consumer Services passed it 11-1. The House Business Regulation Committee passed a companion measure 34-1 Monday night.

Cigarettemakers, who have been at odds over other tobacco legislation this session, support the bill.

Counterfeit cigarettes, many produced abroad, cost the state money in lost tobacco taxes, though no estimates are available.

The state also stands to lose money through the Florida tobacco settlement agreement. Payments are based on the market share of the big tobacco companies, which say they are losing market share to knockoffs.

It's Philip Morris' top priority this year. The company gave $75,000 to Republicans and Democrats since January 2003.

Sen. Frederica Wilson, D-Miami, voted against the bill. Five years is too harsh, she said.

[Last modified March 31, 2004, 01:35:39]


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