The Florida Senate

559.929  Security requirements.--

(1)  An application must be accompanied by a performance bond in an amount set by the department not to exceed $25,000, or in the amount of $50,000 if the seller of travel is offering vacation certificates. The surety on such bond shall be a surety company authorized to do business in the state.

(2)  In lieu of the performance bond required in this part, a registrant or applicant for registration may establish a certificate of deposit or an irrevocable letter of credit in a Florida banking institution in the amount of the performance bond. The department shall be the beneficiary to this certificate of deposit, and the original shall be filed with the department. Any such letter of credit shall provide that the issuer will give the department not less than 120 days written notice prior to terminating or refusing to renew the letter of credit.

(3)  The bond, letter of credit, or certificate of deposit shall be in favor of the department for the use and benefit of any traveler who is injured by the fraud, misrepresentation, breach of contract, financial failure, or violation of any provision of this part by the seller of travel. Such liability may be enforced either by proceeding in an administrative action as specified in subsection (4) or by filing a judicial suit at law in a court of competent jurisdiction. However, in such court suit the bond, letter of credit, or certificate of deposit posted with the department shall not be amenable or subject to any judgment or other legal process issuing out of or from such court in connection with such lawsuit, but such bond, letter of credit, or certificate of deposit shall be amenable to and enforceable only by and through administrative proceedings before the department. It is the intent of the Legislature that such bond, letter of credit, or certificate of deposit shall be applicable and liable only for the payment of claims duly adjudicated by order of the department. The bond, letter of credit, or certificate of deposit shall be open to successive claims, but the aggregate amount may not exceed the amount of the bond, letter of credit, or certificate of deposit.

(4)  Any traveler may file a claim against the bond, letter of credit, or certificate of deposit which shall be made in writing to the department within 120 days after an alleged injury has occurred or is discovered to have occurred. The proceedings shall be held in accordance with ss. 120.569 and 120.57

(5)  In any situation in which the seller of travel is currently the subject of an administrative, civil, or criminal action by either the department, the Department of Legal Affairs, or the state attorney concerning compliance with this part, the right to proceed against the bond, letter of credit, or certificate of deposit, as provided in subsection (4), shall be suspended until after any enforcement action becomes final.

(6)  The department may waive the bond, letter of credit, or certificate of deposit requirement on an annual basis if the seller of travel has had 5 or more consecutive years of experience as a seller of travel in Florida in compliance with this part, has not had any civil, criminal, or administrative action instituted against the seller of travel in the vacation and travel business by any governmental agency or any action involving fraud, theft, misappropriation of property, or moral turpitude, and has a satisfactory consumer complaint history with the department. Such waiver may be revoked if the seller of travel violates any provision of this part.

History.--s. 5, ch. 95-314; s. 251, ch. 96-410; s. 33, ch. 97-250; s. 10, ch. 2003-132.