Senate Bill 1620c1

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    Florida Senate - 1998                           CS for SB 1620

    By the Committee on Governmental Reform and Oversight and
    Senator Williams




    302-1907A-98

  1                      A bill to be entitled

  2         An act relating to consumer protection;

  3         amending s. 213.053, F.S.; authorizing the

  4         Department of Revenue to provide certain

  5         information to the Department of Agriculture

  6         and Consumer Services; amending s. 496.403,

  7         F.S.; exempting persons or organizations who

  8         solicit solely on behalf of bona fide religious

  9         institutions, educational institutions, and

10         governmental entities from the provisions of

11         ss. 496.401-496.424, F.S.; amending s. 496.404,

12         F.S.; clarifying a definition; amending s.

13         496.405, F.S.; revising a registration fee

14         schedule for charitable organizations; amending

15         s. 496.406, F.S.; deleting certain registration

16         requirements for certain charitable

17         organizations; amending s. 501.143, F.S.;

18         deleting a specific annual registration date

19         for certain dance studios; amending s. 501.607,

20         F.S.; clarifying certain procedures for

21         licensing salespersons; amending s. 501.2101,

22         F.S.; authorizing the deposit of moneys

23         received by an enforcing authority for

24         attorney's fees and costs of investigation or

25         litigation to be deposited in the Legal Affairs

26         Revolving Trust Fund; amending s. 559.805,

27         F.S.; requiring business opportunity sellers to

28         disclose certain information; amending s.

29         559.904, F.S.; clarifying registration

30         requirements for motor vehicle repair shop

31         operators; providing a late fee; amending s.

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    Florida Senate - 1998                           CS for SB 1620
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  1         817.415, F.S.; revising requirements for free

  2         advertising; providing an effective date.

  3

  4  Be It Enacted by the Legislature of the State of Florida:

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  6         Section 1.  Paragraph (o) is added to subsection (7) of

  7  section 213.053, Florida Statutes, to read:

  8         213.053  Confidentiality and information sharing.--

  9         (7)  Notwithstanding any other provision of this

10  section, the department may provide:

11         (o)  Names, addresses, and sales tax registration

12  information to the Division of Consumer Services of the

13  Department of Agriculture and Consumers Services in the

14  conduct of its official duties.

15

16  Disclosure of information under this subsection shall be

17  pursuant to a written agreement between the executive director

18  and the agency.  Such agencies, governmental or

19  nongovernmental, shall be bound by the same requirements of

20  confidentiality as the Department of Revenue.  Breach of

21  confidentiality is a misdemeanor of the first degree,

22  punishable as provided by s. 775.082 or s. 775.083.

23         Section 2.  Section 496.403, Florida Statutes, is

24  amended to read:

25         496.403  Application.--Sections 496.401-496.424 do not

26  apply to bona fide religious institutions, educational

27  institutions, and state agencies or other government entities

28  or persons or organizations who solicit or act as professional

29  fundraising consultants solely on their behalf.  Sections

30  496.401-496.424 do not apply to political contributions

31  solicited in accordance with the election laws of this state.

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    Florida Senate - 1998                           CS for SB 1620
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  1         Section 3.  Subsection (16) of section 496.404, Florida

  2  Statutes, is amended to read:

  3         496.404  Definitions.--As used in ss. 496.401-496.424:

  4         (16)  "Parent organization" means that part of a

  5  charitable organization or sponsor which coordinates,

  6  supervises, or exercises control over policy, fundraising, and

  7  expenditures or assists or advises one or more of the

  8  organization's chapters, branches, or affiliates in this

  9  state.

10         Section 4.  Paragraph (a) of subsection (4) of section

11  496.405, Florida Statutes, is amended to read:

12         496.405  Registration statements by charitable

13  organizations and sponsors.--

14         (4)(a)  Every charitable organization, sponsor, or

15  parent organization filing on behalf of one or more chapters,

16  branches, or affiliates that is required to register under

17  this section must pay a single registration fee. A parent

18  organization filing on behalf of one or more chapters,

19  branches, or affiliates shall total all contributions received

20  by the chapters, branches, or affiliates included in the

21  registration statement to determine registration fees. Fees

22  shall be assessed as follows:

23         1.a.  Ten dollars, if the contributions received for

24  the last fiscal or calendar year were less than $5,000; or

25         b.  Ten dollars, if the contributions actually raised

26  or received from the public during the immediately preceding

27  fiscal year by such organization or sponsor are no more than

28  $25,000 and the fundraising activities of such organization or

29  sponsor are carried on by volunteers, members, officers, or

30  permanent employees, who are not compensated, primarily to

31  solicit such contributions, provided no part of the assets or

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    Florida Senate - 1998                           CS for SB 1620
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  1  income of such organization or sponsor inures to the benefit

  2  of or is paid to any officer or member of such organization or

  3  sponsor or to any professional fundraising consultant,

  4  professional solicitor, or commercial co-venturer;

  5         2.  Seventy-five dollars, if the contributions received

  6  for the last fiscal year were $5,000 or more, but less than

  7  $100,000;

  8         3.  One hundred twenty-five dollars, if the

  9  contributions received for the last fiscal year were $100,000

10  or more, but less than $200,000;

11         4.  Two hundred dollars, if the contributions received

12  for the last fiscal year were $200,000 or more, but less than

13  $500,000;

14         5.  Three hundred dollars, if the contributions

15  received for the last fiscal year were $500,000 or more, but

16  less than $1 million;

17         6.  Three hundred fifty dollars, if the contributions

18  received for the last fiscal year were $1 million or more, but

19  less than $10 million;

20         7.  Four hundred dollars, if the contributions received

21  for the last fiscal year were $10 million or more.

22         Section 5.  Section 496.406, Florida Statutes, is

23  amended to read:

24         496.406  Procedures for claiming an exemption from

25  registration.--

26         (1)(a)  The following charitable organizations and

27  sponsors are exempt from the requirements of s. 496.405:

28         (1)1.  A person who is soliciting for a named

29  individual, provided that all the contributions collected

30  without any deductions whatsoever are turned over to the

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    Florida Senate - 1998                           CS for SB 1620
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  1  beneficiary for her or his use and provided that the person

  2  has complied with the requirements of s. 496.413.

  3         (2)2.  A charitable organization or sponsor which

  4  limits solicitation of contributions to the membership of the

  5  charitable organization or sponsor. For the purposes of this

  6  paragraph, the term "membership" does not include those

  7  persons who are granted a membership upon making a

  8  contribution as a result of a solicitation.

  9         (b)  The following charitable organizations and

10  sponsors must follow the procedures in subsection (2) in order

11  to be exempt from the requirements of s. 496.405: charitable

12  organizations or sponsors whose fundraising activities are

13  carried on by volunteers, members, officers, or permanent

14  employees who are not compensated primarily to solicit

15  contributions and which do not actually raise or receive

16  contributions from the public in excess of $25,000 during the

17  immediately preceding fiscal year, if no part of their assets

18  or income inures to the benefit of or are paid to any officer

19  or member, professional fundraising consultant, professional

20  solicitor, or commercial co-venturer. Charitable organizations

21  or sponsors which do not intend to solicit and receive

22  contributions in excess of $25,000, but do receive

23  contributions in excess of that amount, shall file an initial

24  registration statement or annual renewal statement with the

25  department pursuant to s. 496.405 within 30 days after

26  contributions are received in excess of that amount.

27         (2)  Any charitable organization or sponsor claiming to

28  be exempt under paragraph (1)(b) must submit annually to the

29  department, on forms to be prescribed by the department,

30  accompanied by a $10 fee, a sworn statement setting forth the

31  name and address of the organization and its principal

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    Florida Senate - 1998                           CS for SB 1620
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  1  executive personnel, the purpose of the organization, and the

  2  factual basis for the exemption. In addition, a charitable

  3  organization or sponsor claiming to be exempt under paragraph

  4  (1)(b) must include a copy of any financial statement, report,

  5  or return filed with the Internal Revenue Service. The

  6  department must issue annually a letter of exemption to those

  7  organizations or sponsors exempt under paragraph (1)(b).

  8         Section 6.  Paragraph (a) of subsection (3) of section

  9  501.143, Florida Statutes, is amended to read:

10         501.143  Dance Studio Act.--

11         (3)  REGISTRATION OF BALLROOM DANCE STUDIOS.--

12         (a)  Each owner or operator of a ballroom dance studio

13  shall annually register with the department no later than

14  October 1, providing its legal business or trade name, mailing

15  address, and business locations, and the full names,

16  addresses, and telephone numbers of its owners or corporate

17  officers and directors and the Florida agent of the

18  corporation. A copy of all contracts offered to the public

19  shall also be submitted to the department.  A certificate

20  evidencing proof of registration shall be issued by the

21  department.  This certificate must be prominently displayed at

22  the sales or front desk at each business location of a

23  ballroom dance studio defined in subparagraph (2)(a)1.

24  Ballroom dance studios defined in subparagraph (2)(a)2. must

25  possess the certificate when providing dance studio lessons or

26  services.

27         Section 7.  Paragraph (d) of subsection (1) of section

28  501.607, Florida Statutes, is amended to read:

29         501.607  Licensure of salespersons.--

30         (1)  An applicant for a license as a salesperson must

31  submit to the department, in such form as it prescribes, a

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    Florida Senate - 1998                           CS for SB 1620
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  1  written application for a license.  The application must set

  2  forth the following information:

  3         (d)  Whether the applicant, regardless of adjudication

  4  conviction, has previously been arrested for, convicted or

  5  found guilty of, has entered a plea of guilty or a plea of

  6  nolo contendere to, or is under indictment or information for,

  7  a felony and, if so, the nature of the felony.

  8         Section 8.  Subsection (1) of section 501.2101, Florida

  9  Statutes, is amended to read:

10         501.2101  Enforcing authorities; moneys received in

11  certain proceedings; Consumer Frauds Trust Fund.--

12         (1)  Any moneys received by an enforcing authority for

13  attorney's fees and costs of investigation or litigation in

14  proceedings brought under the provisions of s. 501.207, s.

15  501.208, or s. 501.211 shall be deposited as received in the

16  Consumer Frauds Trust Fund or the Legal Affairs Revolving

17  Trust Fund in the State Treasury.

18         Section 9.  Subsection (2) of section 559.805, Florida

19  Statutes, is amended to read:

20         559.805  Filings with the department; disclosure of

21  advertisement identification number.--

22         (2)  Upon the filing of the disclosure statement and

23  the posting of a bond or the establishment of a trust account

24  or a guaranteed letter of credit, if any is required, the

25  department shall issue to the business opportunity seller an

26  advertisement identification number. The business opportunity

27  seller shall include and prominently display the advertisement

28  identification number in all written advertisements, sales

29  materials, promotional documents, and business opportunity

30  contracts.

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    Florida Senate - 1998                           CS for SB 1620
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  1         Section 10.  Subsection (8) of section 559.904, Florida

  2  Statutes, is amended to read:

  3         559.904  Motor vehicle repair shop registration;

  4  application; exemption.--

  5         (8)  Each registration must be renewed annually on or

  6  before the expiration date of the current registration. A late

  7  fee of $25 shall be paid, in addition to the registration fee

  8  or any other penalty, for any registration renewal application

  9  that is received by the department after the expiration date

10  of the current registration. The department may not issue the

11  registration until all fees are paid.

12         Section 11.  Subsection (5) of section 817.415, Florida

13  Statutes, is amended to read:

14         817.415  Florida Free Gift Advertising Law.--

15         (5)  TYPE REQUIREMENTS FOR IN

16  ADVERTISEMENTS.--Advertising in which items are offered as

17  free with conditions or obligations necessary to acceptance

18  shall include a clear and conspicuous statement of any such

19  conditions or obligations with equal prominence and type size

20  at least half that of the term "free," and advertising in

21  compliance herewith shall not be considered deceptive.

22         Section 12.  This act shall take effect October 1,

23  1998.

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    Florida Senate - 1998                           CS for SB 1620
    302-1907A-98




  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                         Senate Bill 1620

  3

  4  Removes from bill section that would have transferred to
    Department of Banking and Finance responsibility to act as
  5  registry for receiving and maintaining records of inquiries,
    correspondence, and complaints from consumers concerning
  6  persons who collect debts, including consumer collection
    agencies.
  7
    Exempts persons or organizations who solicit solely on the
  8  behalf of religious institutions, educational institutions,
    and state agencies or other governmental entities from the
  9  Solicitation of Contributions Act.

10  Authorizes the deposit of moneys received by an enforcing
    authority for attorney's fees and costs of investigation or
11  litigation in proceedings brought under ss. 501.207, 501.208,
    and 501.211, F.S., to be deposited in the Legal Affairs
12  Revolving Trust Fund.

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