House Bill 1061

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    Florida House of Representatives - 1999                HB 1061

        By the Committee on Business Regulation & Consumer Affairs
    and Representatives Ogles, Futch, J. Miller, Cantens, Kilmer,
    Greenstein and Turnbull




  1                      A bill to be entitled

  2         An act relating to consumer protection;

  3         amending s. 496.404, F.S.; revising

  4         definitions; amending s. 496.405, F.S.;

  5         providing additional information to be included

  6         within initial registration statements for

  7         charitable organizations and sponsors;

  8         prohibiting an employee of a charitable

  9         organization or sponsor from soliciting

10         contributions on behalf of the charitable

11         organization or sponsor under specified

12         conditions; amending s. 496.409, F.S.; revising

13         and providing additional information to be

14         included within application for registration or

15         renewal of registration as a professional

16         fundraising consultant; prohibiting a person

17         from acting as a professional fundraising

18         consultant under specified circumstances;

19         amending s. 496.410, F.S.; revising and

20         providing additional information to be included

21         within application for registration or renewal

22         of registration as a professional solicitor;

23         revising provisions which prohibit a person

24         from acting as a professional solicitor;

25         amending s. 496.420, F.S.; revising provisions

26         relating to civil remedies and enforcement;

27         amending s. 501.025, F.S.; providing that

28         specified mortgages do not constitute an

29         evidence of indebtedness for purposes of a

30         buyer's right to cancel a home solicitation

31         sale; amending s. 501.604, F.S.; providing

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  1         additional exclusions from the exemptions to

  2         pt. IV of ch. 501, F.S., the Florida

  3         Telemarketing Act; amending s. 501.616, F.S.;

  4         providing additional unlawful practices with

  5         respect to telephone solicitation; amending s.

  6         539.001, F.S.; revising license requirements

  7         under the Florida Pawnbroking Act; revising

  8         conditions of eligibility for license;

  9         requiring specified persons to file certain

10         documentation upon application for license;

11         requiring the submission of fingerprints with

12         each initial application for licensure;

13         requiring the Division of Consumer Services to

14         submit fingerprints of each applicant for

15         licensure to the Florida Department of Law

16         Enforcement; requiring the Florida Department

17         of Law Enforcement to forward the fingerprints

18         to the Federal Bureau of Investigation;

19         providing an additional condition under which a

20         pawnbroker license may be suspended or revoked;

21         providing that specified unintentional errors

22         in required applications, documents, or records

23         are not subject to criminal penalties; amending

24         s. 559.803, F.S.; revising provisions relating

25         to required information contained in disclosure

26         statements with respect to the sale or lease of

27         business opportunities; amending s. 559.805,

28         F.S.; requiring a seller of business

29         opportunities to file additional information

30         with the department; reenacting s. 559.815,

31         F.S.; providing a penalty; amending s. 559.903,

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  1         F.S.; revising the definition of "motor

  2         vehicle" for the purposes of pt. IX of ch. 559,

  3         F.S., relating to repair of motor vehicles;

  4         amending s. 559.904, F.S.; requiring the

  5         department to post a specified sign at any

  6         motor vehicle repair shop that has had its

  7         registration suspended or revoked or that has

  8         been determined to be operating without a

  9         registration; providing a second degree

10         misdemeanor penalty for defacing or removing

11         such a sign, for operating without a

12         registration, or operating with a revoked or

13         suspended registration; authorizing the

14         department to impose administrative sanctions;

15         amending s. 741.0305, F.S.; correcting a cross

16         reference; providing an effective date.

17

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

19

20         Section 1.  Subsections (5) and (6) of section 496.404,

21  Florida Statutes, 1998 Supplement, are amended, present

22  subsection (21) is renumbered as subsection (20) and amended,

23  and subsections (7) through (24) are renumbered as subsections

24  (6) through (23), respectively, to read:

25         496.404  Definitions.--As used in ss. 496.401-496.424:

26         (5)  "Contribution" means the promise, pledge, or grant

27  of any money or property, financial assistance, or any other

28  thing of value in response to a solicitation. "Contribution"

29  includes, in the case of a charitable organization or sponsor

30  offering goods and services to the public, the difference

31  between the direct cost of the goods and services to the

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  1  charitable organization or sponsor and the price at which the

  2  charitable organization or sponsor or any person acting on

  3  behalf of the charitable organization or sponsor resells those

  4  goods or services to the public. "Contribution" does not

  5  include bona fide fees, dues, or assessments paid by members,

  6  provided that membership is not conferred solely as

  7  consideration for making a contribution in response to a

  8  solicitation. "Contribution" also does not include funds

  9  obtained by a charitable organization or sponsor pursuant to

10  government grants or contracts, or obtained as an allocation

11  from a United Way organization that is duly registered with

12  the department or received from an organization that is exempt

13  from federal income taxation under s. 501(a) of the Internal

14  Revenue Code and described in s. 501(c) of the Internal

15  Revenue Code that is duly registered with the department.

16         (6)  "Conviction" means a determination of guilt

17  resulting from plea or trial, regardless of whether

18  adjudication was withheld or imposition of sentence was

19  suspended.

20         (20)(21)  "Solicitation" means a request, directly or

21  indirectly, for money, property, financial assistance, or any

22  other thing of value on the plea or representation that such

23  money, property, financial assistance, or other thing of value

24  or a portion of it will be used for a charitable or sponsor

25  purpose or will benefit a charitable organization or sponsor.

26  "Solicitation" includes, but is not limited to, the following

27  methods of requesting or securing the promise, pledge, or

28  grant of money, property, financial assistance, or any other

29  thing of value:

30         (a)  Any oral or written request;

31

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  1         (b)  Making any announcement to the press, on radio or

  2  television, by telephone or telegraph, or by any other

  3  communication device concerning an appeal or campaign by or

  4  for any charitable organization or sponsor or for any

  5  charitable or sponsor purpose;

  6         (c)  Distributing, circulating, posting, or publishing

  7  any handbill, written advertisement, or other publication that

  8  directly or by implication seeks to obtain any contribution;

  9  or

10         (d)  Selling or offering or attempting to sell any

11  advertisement, advertising space, book, card, coupon, chance,

12  device, magazine, membership, merchandise, subscription,

13  sponsorship, flower, admission, ticket, food, or other service

14  or tangible good, item, or thing of value, or any right of any

15  description in connection with which any appeal is made for

16  any charitable organization or sponsor or charitable or

17  sponsor purpose, or when the name of any charitable

18  organization or sponsor is used or referred to in any such

19  appeal as an inducement or reason for making the sale or when,

20  in connection with the sale or offer or attempt to sell, any

21  statement is made that all or part of the proceeds from the

22  sale will be used for any charitable or sponsor purpose or

23  will benefit any charitable organization or sponsor.

24

25  A solicitation is considered as having taken place whether or

26  not the person making the solicitation receives any

27  contribution. A solicitation does not occur when a person

28  applies for a grant or an award to the government or to an

29  organization that is exempt from federal income taxation under

30  s. 501(a) of the Internal Revenue Code and described in s.

31

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  1  501(c) of the Internal Revenue Code and is duly registered

  2  with the department.

  3         Section 2.  Paragraph (d) of subsection (2) of section

  4  496.405, Florida Statutes, 1998 Supplement, is amended, and a

  5  new subsection (8) is added to said section, to read:

  6         496.405  Registration statements by charitable

  7  organizations and sponsors.--

  8         (2)  The initial registration statement must be

  9  submitted on a form prescribed by the department, signed under

10  oath by the treasurer or chief fiscal officer of the

11  charitable organization or sponsor, and include the following

12  information or material:

13         (d)  A statement of whether:

14         1.  The charitable organization or sponsor is

15  authorized by any other state to solicit contributions;

16         2.  The charitable organization or sponsor or any of

17  its officers, directors, trustees, or principal salaried

18  executive personnel have been enjoined in any jurisdiction

19  from soliciting contributions or have been found to have

20  engaged in unlawful practices in the solicitation of

21  contributions or administration of charitable assets;

22         3.  The charitable organization or sponsor has had its

23  registration or authority denied, suspended, or revoked by any

24  governmental agency, together with the reasons for such

25  denial, suspension, or revocation; and

26         4.  The charitable organization or sponsor has

27  voluntarily entered into an assurance of voluntary compliance

28  or agreement similar to that set forth in s. 496.420, together

29  with a copy of that agreement.

30         5.  The charitable organization or sponsor or any of

31  its officers, directors, trustees, or principal salaried

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  1  executive personnel, regardless of adjudication, has been

  2  convicted of, or found guilty of, or pled guilty or nolo

  3  contendere to, or has been incarcerated within the last 10

  4  years as a result of having previously been convicted of, or

  5  found guilty of, or pled guilty or nolo contendere to, any

  6  felony or any crime involving fraud, theft, larceny,

  7  embezzlement, fraudulent conversion, misappropriation of

  8  property, or any crime arising from the conduct of a

  9  solicitation for a charitable organization or sponsor within

10  the last 10 years and, if so, the name of such person, the

11  nature of the offense, the date of the offense, the court

12  having jurisdiction in the case, the date of conviction or

13  other disposition, and the disposition of the offense.

14         6.  The charitable organization or sponsor or any of

15  its officers, directors, trustees, or principal salaried

16  executive personnel has been enjoined from violating any law

17  relating to a charitable solicitation, and, if so, the name of

18  such person, the date of the injunction, and the court issuing

19  the injunction.

20         (8)  No employee of a charitable organization or

21  sponsor may solicit contributions on behalf of such charitable

22  organization or sponsor if such employee has, regardless of

23  adjudication, been convicted of, or found guilty of, or pled

24  guilty or nolo contendere to, or has been incarcerated within

25  the last 10 years as a result of having previously been

26  convicted of, or found guilty of, or pled guilty or nolo

27  contendere to, any felony within the last 10 years or any

28  crime within the last 10 years involving fraud, theft,

29  larceny, embezzlement, fraudulent conversion, misappropriation

30  of property, or any crime arising from the conduct of a

31  solicitation for a charitable organization or sponsor, or has

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  1  been enjoined from violating any law relating to a charitable

  2  solicitation.

  3         Section 3.  Subsection (2) of section 496.409, Florida

  4  Statutes, is amended, and a new subsection (9) is added to

  5  said section, to read:

  6         496.409  Registration and duties of professional

  7  fundraising consultant.--

  8         (2)  Applications for registration or renewal of

  9  registration must be submitted on a form prescribed by the

10  department, signed under oath, and must include the following

11  information:

12         (a)  The street address and telephone number of the

13  principal place of business of the applicant and any Florida

14  street addresses if the principal place of business is located

15  outside this state.

16         (b)  The form of the applicant's business.

17         (c)  The names and residence addresses of all

18  principals of the applicant, including all officers,

19  directors, and owners.

20         (d)  Whether any of the owners, directors, officers, or

21  employees of the applicant are related as parent, child,

22  spouse, or sibling to any other directors, officers, owners,

23  or employees of the applicant; to any officer, director,

24  trustee, or employee of any charitable organization or sponsor

25  under contract to the applicant; or to any supplier or vendor

26  providing goods or services to any charitable organization or

27  sponsor under contract to the applicant.

28         (e)  Whether the applicant or any of its officers,

29  directors, trustees, or principal salaried employees have,

30  within the last 10 5 years, regardless of adjudication, been

31  convicted, or found guilty of, or pled guilty or nolo

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  1  contendere to, or have been incarcerated within the last 10

  2  years as a result of having previously been convicted of, or

  3  found guilty of, or pled guilty or nolo contendere to, any

  4  felony and, if so, the name of such person, the nature of the

  5  offense, the date of the offense, the court having

  6  jurisdiction in the case, the date of conviction or other

  7  disposition, and the disposition of the offense of any felony,

  8  or of any misdemeanor arising from the conduct of a

  9  solicitation for a charitable organization or sponsor or

10  charitable or sponsor purpose, or been enjoined from violating

11  a charitable solicitation law in this or any other state.

12         (f)  Whether the applicant or any of its officers,

13  directors, trustees, or principal salaried employees have,

14  regardless of adjudication, been convicted of, or found guilty

15  of, or pled guilty or nolo contendere to, or have been

16  incarcerated within the last 10 years as a result of having

17  previously been convicted of, or found guilty of, or pled

18  guilty or nolo contendere to, a crime within the last 10 years

19  involving fraud, theft, larceny, embezzlement, fraudulent

20  conversion, or misappropriation of property, or any crime

21  arising from the conduct of a solicitation for a charitable

22  organization or sponsor and, if so, the name of such person,

23  the nature of the offense, the date of the offense, the court

24  having jurisdiction in the case, the date of conviction or

25  other disposition, and the disposition of the offense.

26         (g)  Whether the applicant or any of its officers,

27  directors, trustees, or principal salaried employees have been

28  enjoined from violating any law relating to a charitable

29  solicitation and, if so, the name of such person, the date of

30  the injunction, and the court issuing the injunction.

31

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  1         (9)  No person may act as a professional fundraising

  2  consultant if such person or any officer, trustee, director,

  3  or principal salaried employee thereof has, regardless of

  4  adjudication, been convicted of, or found guilty of, or pled

  5  guilty or nolo contendere to, or has been incarcerated within

  6  the last 10 years as a result of having previously been

  7  convicted of, or found guilty of, or pled guilty or nolo

  8  contendere to, any crime within the last 10 years involving

  9  fraud, theft, larceny, embezzlement, fraudulent conversion, or

10  misappropriation of property, or any crime arising from the

11  conduct of a solicitation for a charitable organization or

12  sponsor, or has been enjoined from violating any law relating

13  to a charitable solicitation.

14         Section 4.  Subsections (2) and (14) of section

15  496.410, Florida Statutes, are amended to read:

16         496.410  Registration and duties of professional

17  solicitors.--

18         (2)  Applications for registration or renewal of

19  registration must be submitted on a form prescribed by rule of

20  the department, signed under oath, and must include the

21  following information:

22         (a)  The street address and telephone number of the

23  principal place of business of the applicant and any Florida

24  street addresses if the principal place of business is located

25  outside this state.

26         (b)  The form of the applicant's business.

27         (c)  The place and date when the applicant, if other

28  than an individual, was legally established.

29         (d)  The names and residence addresses of all

30  principals of the applicant, including all officers,

31  directors, and owners.

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  1         (e)  A statement as to whether any of the owners,

  2  directors, officers, or employees of the applicant are related

  3  as parent, spouse, child, or sibling to any other directors,

  4  officers, owners, or employees of the applicant; to any

  5  officer, director, trustee, or employee of any charitable

  6  organization or sponsor under contract to the applicant; or to

  7  any supplier or vendor providing goods or services to any

  8  charitable organization or sponsor under contract to the

  9  applicant.

10         (f)  A statement as to whether the applicant or any of

11  its directors, officers, trustees, persons with a controlling

12  interest in the applicant, or employees or agents involved in

13  solicitation have been convicted, within the last 10 5 years,

14  regardless of adjudication, been convicted of, or found guilty

15  of, or pled guilty or nolo contendere to, or have been

16  incarcerated within the last 10 years as a result of having

17  previously been convicted of, or found guilty of, or pled

18  guilty or nolo contendere to, any felony and, if so, the name

19  of such person, the nature of the offense, the date of the

20  offense, the court having jurisdiction in the case, the date

21  of conviction or other disposition, and the disposition of the

22  offense of any felony, or of a misdemeanor arising from the

23  conduct of a solicitation for any charitable organization or

24  sponsor or charitable or sponsor purpose, or been enjoined

25  from violating a charitable solicitation law in this or any

26  other state.

27         (g)  A statement as to whether the applicant or any of

28  its directors, officers, trustees, persons with a controlling

29  interest in the applicant, or employees or agents involved in

30  solicitation have, regardless of adjudication, been convicted

31  of, or found guilty of, or pled guilty or nolo contendere to,

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  1  or have been incarcerated within the last 10 years as a result

  2  of having previously been convicted of, or found guilty of, or

  3  pled guilty or nolo contendere to, a crime within the last 10

  4  years involving fraud, theft, larceny, embezzlement,

  5  fraudulent conversion, or misappropriation of property, or any

  6  crime arising from the conduct of a solicitation for a

  7  charitable organization or sponsor and, if so, the name of

  8  such person, the nature of the offense, the date of the

  9  offense, the court having jurisdiction in the case, the date

10  of conviction or other disposition, and the disposition of the

11  offense.

12         (h)  A statement as to whether the applicant or any of

13  its directors, officers, trustees, persons with a controlling

14  interest in the applicant, or employees or agents involved in

15  solicitation have been enjoined from violating any law

16  relating to a charitable solicitation and, if so, the name of

17  such person, the date of the injunction, and the court issuing

18  the injunction.

19         (i)(g)  The names of all persons in charge of any

20  solicitation activity.

21         (14)  No person may act as a professional solicitor if

22  such person, any officer, trustee, or director thereof, any

23  person with a controlling interest therein, or any person the

24  professional solicitor employs, engages, or procures to

25  solicit for compensation, has, regardless of adjudication,

26  been convicted of, or found guilty of, or pled guilty or nolo

27  contendere to, or has been incarcerated within the last 10

28  years as a result of having previously been convicted of, or

29  found guilty of, or pled guilty or nolo contendere to, a

30  felony within the last 10 years involving fraud, theft,

31  larceny, embezzlement, fraudulent conversion, or

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  1  misappropriation of property, or any crime arising from the

  2  conduct of a solicitation for a charitable organization or

  3  sponsor, or has been enjoined from violating any law relating

  4  to a charitable solicitation been convicted in the last 5

  5  years by a court in any state of the United States of a crime

  6  arising from the conduct of a solicitation for a charitable

  7  organization or sponsor or a charitable purpose or sponsor

  8  purpose.

  9         Section 5.  Section 496.420, Florida Statutes, is

10  amended to read:

11         496.420  Civil remedies and enforcement.--

12         (1)  In addition to other remedies authorized by law,

13  the department of Legal Affairs may bring a civil action in

14  circuit court to enforce ss. 496.401-496.424 or s. 496.426.

15  Upon a finding that any person has violated any of these

16  sections, a court may make any necessary order or enter a

17  judgment including, but not limited to, a temporary or

18  permanent injunction, a declaratory judgment, the appointment

19  of a master or receiver, the sequestration of assets, the

20  reimbursement of persons from whom contributions have been

21  unlawfully solicited, the distribution of contributions in

22  accordance with the charitable or sponsor purpose expressed in

23  the registration statement or in accordance with the

24  representations made to the person solicited, the

25  reimbursement of the department for investigative costs, and

26  of the Department of Legal Affairs for attorney's fees and

27  costs, including investigative costs, and any other equitable

28  relief the court finds appropriate. Upon a finding that any

29  person has violated any provision of ss. 496.401-496.424 or s.

30  496.426 with actual knowledge or knowledge fairly implied on

31  the basis of objective circumstances, a court may enter an

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  1  order imposing a civil penalty in an amount not to exceed

  2  $10,000 per violation.

  3         (2)  The department of Legal Affairs may conduct any

  4  investigation necessary to bring a civil action under this

  5  section including, but not limited to, administering oaths and

  6  affirmations, subpoenaing witnesses or material, and

  7  collecting evidence.

  8         (3)  The department of Legal Affairs may terminate an

  9  investigation or an action upon acceptance of a person's

10  written assurance of voluntary compliance with ss.

11  496.401-496.424 or s. 496.426. Acceptance of an assurance may

12  be conditioned on commitment to reimburse donors or to take

13  other appropriate corrective action. An assurance is not

14  evidence of a prior violation of any of these sections.

15  However, unless an assurance has been rescinded by agreement

16  of the parties or voided by a court for good cause, subsequent

17  failure to comply with the terms of an assurance is prima

18  facie evidence of a violation of one or more of these

19  sections.

20         (4)  All moneys, including, but not limited to, civil

21  penalties and attorney's fees and costs, collected pursuant to

22  this section and s. 496.416, shall be paid into the General

23  Inspection Consumer Frauds Trust Fund.

24         Section 6.  Section 501.025, Florida Statutes, is

25  amended to read:

26         501.025  Home solicitation sale; buyer's right to

27  cancel.--In addition to any other right to revoke an offer,

28  the buyer has the right to cancel a home solicitation sale

29  until midnight of the third business day after the day on

30  which the buyer signs an agreement or offer to purchase.

31  Cancellation is evidenced by the buyer giving written notice

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  1  of cancellation in person, by telegram, or by mail to the

  2  seller at the address stated in the agreement or offer to

  3  purchase.  The written notice of cancellation given by mail

  4  shall be effective upon postmarking. The notice of

  5  cancellation need not take a particular form and is sufficient

  6  if it indicates by any form of written expression the

  7  intention of the buyer not to be bound by the home

  8  solicitation sale.  Notice of a buyer's right to cancel must

  9  appear on every note or other evidence of indebtedness given

10  pursuant to any home solicitation sale. For the purpose of

11  this section, unless a mortgage also creates the buyer's

12  promise to pay the secured debt, it is not an evidence of

13  indebtedness.

14         Section 7.  The introductory paragraph of section

15  501.604, Florida Statutes, is amended to read:

16         501.604  Exemptions.--The provisions of this part,

17  except s. 501.608 and s. 501.616(6) and (7), do not apply to:

18         (1)  A person engaging in commercial telephone

19  solicitation where the solicitation is an isolated transaction

20  and not done in the course of a pattern of repeated

21  transactions of like nature.

22         (2)  A person soliciting for religious, charitable,

23  political, or educational purposes.  A person soliciting for

24  other noncommercial purposes is exempt only if that person is

25  soliciting for a nonprofit corporation and if that corporation

26  is properly registered as such with the Secretary of State and

27  is included within the exemption of s. 501(c)(3) or (6) of the

28  Internal Revenue Code.

29         (3)  A person who does not make the major sales

30  presentation during the telephone solicitation and who does

31  not intend to, and does not actually, complete or obtain

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  1  provisional acceptance of a sale during the telephone

  2  solicitation, but who makes the major sales presentation and

  3  completes the sale at a later face-to-face meeting between the

  4  seller and the prospective purchaser in accordance with the

  5  home solicitation provisions in this chapter. However, if a

  6  seller, directly following a telephone solicitation, causes an

  7  individual whose primary purpose it is to go to the

  8  prospective purchaser to collect the payment or deliver any

  9  item purchased, this exemption does not apply.

10         (4)  Any licensed securities, commodities, or

11  investment broker, dealer, or investment adviser, when

12  soliciting within the scope of his or her license, or any

13  licensed associated person of a securities, commodities, or

14  investment broker, dealer, or investment adviser, when

15  soliciting within the scope of his or her license.  As used in

16  this section, "licensed securities, commodities, or investment

17  broker, dealer, or investment adviser" means a person subject

18  to license or registration as such by the Securities and

19  Exchange Commission, by the National Association of Securities

20  Dealers or other self-regulatory organization as defined by

21  the Securities Exchange Act of 1934, 15 U.S.C. s. 78l, or by

22  an official or agency of this state or of any state of the

23  United States.  As used in this section, "licensed associated

24  person of a securities, commodities, or investment broker,

25  dealer, or investment adviser" means any associated person

26  registered or licensed by the National Association of

27  Securities Dealers or other self-regulatory organization as

28  defined by the Securities Exchange Act of 1934, 15 U.S.C. s.

29  78l, or by an official or agency of this state or of any state

30  of the United States.

31

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  1         (5)  A person primarily soliciting the sale of a

  2  newspaper of general circulation.

  3         (6)  A book, video, or record club or contractual plan

  4  or arrangement:

  5         (a)  Under which the seller provides the consumer with

  6  a form which the consumer may use to instruct the seller not

  7  to ship the offered merchandise.

  8         (b)  Which is regulated by the Federal Trade Commission

  9  trade regulation concerning "use of negative option plans by

10  sellers in commerce."

11         (c)  Which provides for the sale of books, records, or

12  videos which are not covered under paragraph (a) or paragraph

13  (b), including continuity plans, subscription arrangements,

14  standing order arrangements, supplements, and series

15  arrangements under which the seller periodically ships

16  merchandise to a consumer who has consented in advance to

17  receive such merchandise on a periodic basis.

18         (7)  Any supervised financial institution or parent,

19  subsidiary, or affiliate thereof. As used in this section,

20  "supervised financial institution" means any commercial bank,

21  trust company, savings and loan association, mutual savings

22  bank, credit union, industrial loan company, consumer finance

23  lender, commercial finance lender, or insurer, provided that

24  the institution is subject to supervision by an official or

25  agency of this state, of any state, or of the United States.

26  For the purposes of this exemption, "affiliate" means a person

27  who directly, or indirectly through one or more

28  intermediaries, controls or is controlled by, or is under

29  common control with, a supervised financial institution.

30         (8)  Any licensed insurance broker, agent, customer

31  representative, or solicitor when soliciting within the scope

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  1  of his or her license. As used in this section, "licensed

  2  insurance broker, agent, customer representative, or

  3  solicitor" means any insurance broker, agent, customer

  4  representative, or solicitor licensed by an official or agency

  5  of this state or of any state of the United States.

  6         (9)  A person soliciting the sale of services provided

  7  by a cable television system operating under authority of a

  8  franchise or permit.

  9         (10)  A business-to-business sale where:

10         (a)  The commercial telephone seller has been operating

11  continuously for at least 3 years under the same business name

12  and has at least 50 percent of its dollar volume consisting of

13  repeat sales to existing businesses;

14         (b)  The purchaser business intends to resell or offer

15  for purposes of advertisement or as a promotional item the

16  property or goods purchased; or

17         (c)  The purchaser business intends to use the property

18  or goods purchased in a recycling, reuse, remanufacturing, or

19  manufacturing process.

20         (11)  A person who solicits sales by periodically

21  publishing and delivering a catalog of the seller's

22  merchandise to prospective purchasers, if the catalog:

23         (a)  Contains a written description or illustration of

24  each item offered for sale.

25         (b)  Includes the business address or home office

26  address of the seller.

27         (c)  Includes at least 20 pages of written material and

28  illustrations and is distributed in more than one state.

29         (d)  Has an annual circulation by mailing of not less

30  than 150,000.

31

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  1         (12)  A person who solicits contracts for the

  2  maintenance or repair of goods previously purchased from the

  3  person making the solicitation or on whose behalf the

  4  solicitation is made.

  5         (13)  A commercial telephone seller licensed pursuant

  6  to chapter 516 or part II of chapter 520. For purposes of this

  7  exemption, the seller must solicit to sell a consumer good or

  8  service within the scope of his or her license and the

  9  completed transaction must be subject to the provisions of

10  chapter 516 or part II of chapter 520.

11         (14)  A telephone company subject to the provisions of

12  chapter 364, or affiliate thereof or its agents, or a business

13  which is regulated by the Florida Public Service Commission,

14  or a Federal Communications Commission licensed cellular

15  telephone company or other bona fide radio telecommunication

16  services provider. For the purposes of this exemption,

17  "affiliate" means a person who directly, or indirectly through

18  one or more intermediaries, controls or is controlled by, or

19  is under common control with, a telephone company subject to

20  the provisions of chapter 364.

21         (15)  A person who is licensed pursuant to chapter 470

22  or chapter 497 and who is soliciting within the scope of the

23  license.

24         (16)  An issuer or a subsidiary of an issuer that has a

25  class of securities which is subject to s. 12 of the

26  Securities Exchange Act of 1934, 15 U.S.C. s. 78l, and which

27  is either registered or exempt from registration under

28  paragraph (A), paragraph (B), paragraph (C), paragraph (E),

29  paragraph (F), paragraph (G), or paragraph (H) of subsection

30  (g)(2) of that section.

31

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  1         (17)  A business soliciting exclusively the sale of

  2  telephone answering services provided that the telephone

  3  answering services will be supplied by the solicitor.

  4         (18)  A person soliciting a transaction regulated by

  5  the Commodity Futures Trading Commission if the person is

  6  registered or temporarily licensed for this activity with the

  7  Commodity Futures Trading Commission under the Commodity

  8  Exchange Act, 7 U.S.C. ss. 1 et seq., and the registration or

  9  license has not expired or been suspended or revoked.

10         (19)  A person soliciting the sale of food or produce

11  as defined in chapter 500 or chapter 504 if the solicitation

12  neither intends to result in, or actually results in, a sale

13  which costs the purchaser in excess of $500.

14         (20)  A person who is registered pursuant to part XI of

15  chapter 559 and who is soliciting within the scope of the

16  registration.

17         (21)  A person soliciting business from prospective

18  consumers who have an existing business relationship with or

19  who have previously purchased from the business enterprise for

20  which the solicitor is calling, if the solicitor is operating

21  under the same exact business name.

22         (22)  A person who has been operating, for at least 1

23  year, a retail business establishment under the same name as

24  that used in connection with telemarketing, and both of the

25  following occur on a continuing basis:

26         (a)  Either products are displayed and offered for sale

27  or services are offered for sale and provided at the business

28  establishment.

29         (b)  A majority of the seller's business involves the

30  buyer obtaining such products or services at the seller's

31  location.

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  1         (23)  A person who is a registered developer or

  2  exchange company pursuant to chapter 721 and who is soliciting

  3  within the scope of the chapter.

  4         (24)  Any person which has been providing telemarketing

  5  sales services continuously for at least 5 years under the

  6  same ownership and control and which derives 75 percent of its

  7  gross telemarketing sales revenues from contracts with persons

  8  exempted in this section.

  9         (25)  A person who is a licensed real estate

10  salesperson or broker pursuant to chapter 475 and who is

11  soliciting within the scope of the chapter.

12         (26)  A publisher, or an agent of a publisher by

13  written agreement, who solicits the sale of his or her

14  periodical or magazine of general, paid circulation.  The term

15  "paid circulation" shall not include magazines that are only

16  circulated as part of a membership package or that are given

17  as a free gift or prize from the publisher or agent of the

18  publisher by written agreement.

19         (27)  A person who is a licensed operator or an

20  identification cardholder as defined in chapter 482, and who

21  is soliciting within the scope of the chapter.

22         (28)  A licensee, or an affiliate of a licensee,

23  regulated under chapter 560, the Money Transmitters' Code, for

24  foreign currency exchange services.

25         Section 8.  Subsections (6) and (7) are added to

26  section 501.616, Florida Statutes, to read:

27         501.616  Unlawful acts and practices.--

28         (6)  It shall be unlawful for any commercial telephone

29  seller or salesperson to make a commercial telephone

30  solicitation phone call before 8:00 a.m. or after 9:00 p.m.

31  local time at the called person's location.

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  1         (7)  It shall be unlawful for any commercial telephone

  2  seller or salesperson making telephonic solicitations to take

  3  any intentional action that would prevent the solicitor's

  4  telephone number from being passed on to the called party.

  5         Section 9.  Paragraph (c) of subsection (3), paragraph

  6  (c) of subsection (5), paragraph (a) of subsection (6), and

  7  subsection (4) of section 539.001, Florida Statutes, are

  8  amended to read:

  9         539.001  The Florida Pawnbroking Act.--

10         (3)  LICENSE REQUIRED.--

11         (c)  Each license is valid for a period of 1 year

12  unless remains in effect until it is earlier relinquished,

13  suspended, or revoked, or expires. Each license shall be

14  renewed annually, and each licensee shall, initially and

15  annually thereafter, pay to the agency a license fee of not to

16  exceed $300 for each license held. If the annual license fee

17  remains unpaid 30 days after written notice of delinquency has

18  been given to the licensee by the agency, the license shall

19  thereupon expire on the expiration date specified in the

20  registration certificate.

21         (4)  ELIGIBILITY FOR LICENSE.--

22         (a)  To be eligible for a pawnbroker's license, an

23  applicant must:

24         1.  Be of good moral character;

25         2.  Have a net worth of at least $50,000 or file with

26  the agency a bond issued by a surety company qualified to do

27  business in this state in the amount of $10,000 for each

28  license. In lieu of the bond required in this section, the

29  applicant may establish a certificate of deposit or an

30  irrevocable letter of credit in a Florida banking institution

31  in the amount of the bond. The original bond, certificate of

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  1  deposit, or letter of credit shall be filed with the agency,

  2  and the agency shall be the beneficiary to said document. The

  3  bond, certificate of deposit, or letter of credit shall be in

  4  favor of the agency for the use and benefit of any consumer

  5  who is injured by the fraud, misrepresentation, breach of

  6  contract, financial failure, or violation of any provision of

  7  this section by the pawnbroker. Such liability may be enforced

  8  either by proceeding in an administrative action or by filing

  9  a judicial suit at law in a court of competent jurisdiction.

10  However, in such court suit, the bond, certificate of deposit,

11  or letter of credit posted with the agency shall not be

12  amenable or subject to any judgment or other legal process

13  issuing out of or from such court in connection with such

14  lawsuit, but such bond, certificate of deposit, or letter of

15  credit shall be amenable to and enforceable only by and

16  through administrative proceedings before the agency. It is

17  the intent of the Legislature that such bond, certificate of

18  deposit, or letter of credit shall be applicable and liable

19  only for the payment of claims duly adjudicated by order of

20  the agency. The bond, certificate of deposit, or letter of

21  credit shall be payable on a pro rata basis as determined by

22  the agency, but the aggregate amount may not exceed the amount

23  of the bond, certificate of deposit, or letter of credit;

24         3.  Not have been convicted of, or found guilty of, or

25  pled guilty or nolo contendere to, or not have been

26  incarcerated within the last 10 years as a result of having

27  previously been convicted of, or found guilty of, or plead

28  guilty or nolo contendere to, regardless of adjudication, a

29  felony within the last 10 years and not be acting as a

30  beneficial owner for someone who has been convicted of, or

31  found guilty of, or pled guilty or nolo contendere to,

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  1  regardless of adjudication, a felony within the last 10 years;

  2  and

  3         4.  Not have been convicted of, or found guilty of, or

  4  pled guilty or nolo contendere to, or not have been

  5  incarcerated within the last 10 years as a result of having

  6  previously been convicted of, or found guilty of, or pled

  7  guilty or nolo contendere to, regardless of adjudication, a

  8  crime that involves theft, larceny, dealing in stolen

  9  property, receiving stolen property, burglary, embezzlement,

10  obtaining property by false pretenses, possession of altered

11  property, or any other fraudulent or dishonest dealing the

12  agency finds directly relates to the duties and

13  responsibilities of a pawnbroker within the last 10 years, and

14  not be acting as a beneficial owner for someone who has been

15  convicted, of, or found guilty of, or pled guilty or nolo

16  contendere to, or has been incarcerated within the last 10

17  years as a result of having previously been convicted of, or

18  found guilty of, or pled guilty or nolo contendere to,

19  regardless of adjudication, a crime that involves theft,

20  larceny, dealing in stolen property, receiving stolen

21  property, burglary, embezzlement, obtaining property by false

22  pretenses, possession of altered property, or any other

23  fraudulent or dishonest dealing the agency finds directly

24  relates to the duties and responsibilities of a pawnbroker

25  within the last 10 years.

26         (b)  Any applicant claiming to have a net worth of

27  $50,000 or more shall file with the department, at the time of

28  applying for a license, the following documentation:

29         1.  A current financial statement prepared by a Florida

30  certified public accountant; or

31

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  1         2.  An affidavit stating the applicant's net worth is

  2  at least $50,000, accompanied by supporting documentation; or

  3         3.  If the applicant is a corporation, a copy of the

  4  applicant's most recently filed federal tax return.

  5

  6  If the agency cannot verify that the applicant meets the net

  7  worth requirement for a license, the agency may require a

  8  finding, including the presentation of a current balance

  9  sheet, by an accounting firm or individual holding a permit to

10  practice public accounting in this state, that the accountant

11  has reviewed the books and records of the applicant and that

12  the applicant meets the net worth requirement.

13         (c)  If an applicant for a pawnbroker's license is not

14  an individual, the eligibility requirements of this

15  subsection, other than the requirements of subparagraph (a)2.,

16  apply to each operator of the pawnshop and to each direct or

17  beneficial owner of at least 10 percent of the outstanding

18  equity interest of the pawnshop and, if the applicant is a

19  corporation, to each officer and director of the corporation.

20         (5)  APPLICATION FOR LICENSE.--

21         (c)  Each initial application for a license must be

22  accompanied by a complete set of fingerprints taken by an

23  authorized law enforcement officer, an application fee set by

24  the agency not to exceed $300 for, which shall include the

25  first year's license fee, and for the first year's operation,

26  plus the actual cost to the department for fingerprint

27  analysis for each person subject to the eligibility

28  requirements. The agency shall submit the fingerprints to the

29  Department of Law Enforcement for state processing and the

30  Department of Law Enforcement shall forward the fingerprints

31  to the Federal Bureau of Investigation for a national criminal

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  1  history check owner application, to cover the costs of

  2  investigating the applicant. These fees and costs are not

  3  refundable.

  4         (6)  SUSPENSION, REVOCATION, AND SURRENDER OF LICENSE;

  5  NET WORTH REQUIREMENT.--

  6         (a)  The agency may, after notice and a hearing,

  7  suspend or revoke any license upon a finding that:

  8         1.  The licensee, either knowingly or without the

  9  exercise of due care, has violated this section or has aided

10  or conspired with another person to violate this section;

11         2.  A condition exists that, had it existed when the

12  original license was issued, would have justified the agency's

13  refusal to issue a license; or

14         3.  The licensee or its applicable agents or employees

15  who are subject to the eligibility requirements no longer meet

16  the eligibility requirements to hold a pawnbroker's license;

17  or

18         4.3.  The licensee has through gross negligence or

19  willful noncompliance failed to comply with a written hold

20  order.

21         (17)  CRIMINAL PENALTIES.--

22         (a)  Any person who engages in business as a pawnbroker

23  without first securing a license commits a felony of the third

24  degree, punishable as provided in s. 775.082, s. 775.083, or

25  s. 775.084.

26         (b)  In addition to any other penalty, any person, who

27  willfully violates this section or who willfully makes a false

28  entry in any record specifically required by this section

29  commits a misdemeanor of the first degree, punishable as

30  provided in s. 775.082 or s. 775.083. Clerical or

31  recordkeeping errors such as typographical errors, scrivener's

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  1  errors and computer errors regarding any application,

  2  document, or record required by this section do not constitute

  3  a willful violation of this section and are not subject to

  4  criminal penalties. Clerical errors are subject to

  5  administrative penalties pursuant to subsection (7). Repeated

  6  patterns of clerical errors may be subject to administrative

  7  remedies as set forth in subsection (6) as determined by the

  8  agency.

  9         Section 10.  Paragraph (a) of subsection (11) of

10  section 559.803, Florida Statutes, is amended to read:

11         559.803  Disclosure statement.--At least 3 working days

12  prior to the time the purchaser signs a business opportunity

13  contract, or at least 3 working days prior to the receipt of

14  any consideration by the seller, whichever occurs first, the

15  seller must provide the prospective purchaser a written

16  document, the cover sheet of which is entitled in at least

17  12-point boldfaced capital letters "DISCLOSURES REQUIRED BY

18  FLORIDA LAW."  Under this title shall appear the following

19  statement in at least 10-point type:  "The State of Florida

20  has not reviewed and does not approve, recommend, endorse, or

21  sponsor any business opportunity.  The information contained

22  in this disclosure has not been verified by the state.  If you

23  have any questions about this investment, see an attorney

24  before you sign a contract or agreement."  Nothing except the

25  title and required statement shall appear on the cover sheet.

26  Immediately following the cover sheet, the seller must provide

27  an index page that briefly lists the contents of the

28  disclosure document as required in this section and any pages

29  on which the prospective purchaser can find each required

30  disclosure.  At the top of the index page, the following

31  statement must appear in at least 10-point type: "The State of

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  1  Florida requires sellers of business opportunities to disclose

  2  certain information to prospective purchasers.  This index is

  3  provided to help you locate this information."  If the index

  4  contains other information not required by this section, the

  5  seller shall place a designation beside each of the

  6  disclosures required by this section and provide an

  7  explanation of the designation at the end of the statement at

  8  the top of the index page.  The disclosure document shall

  9  contain the following information:

10         (11)  A statement disclosing who, if any, of the

11  persons listed in subsections (1) and (2):

12         (a)  Has, at any time during the previous 10 7 fiscal

13  years, regardless of adjudication, been convicted of, or found

14  guilty of, or pled guilty or nolo contendere to, or has been

15  incarcerated within the last 10 years as a result of having

16  previously been convicted of, or found guilty of, or pled

17  guilty or nolo contendere to, a felony or a crime involving a

18  felony or pleaded nolo contendere to a felony charge if the

19  felony involved fraud, theft, larceny, (including violation of

20  any franchise or business opportunity law or unfair or

21  deceptive practices law), embezzlement, fraudulent conversion,

22  misappropriation of property, or restraint of trade.

23         Section 11.  Subsections (2), (3), and (4) of section

24  559.805, Florida Statutes, 1998 Supplement, are renumbered as

25  subsections (3), (4), and (5), respectively, and a new

26  subsection (2) is added to said section to read:

27         559.805  Filings with the department; disclosure of

28  advertisement identification number.--

29         (2)  Every seller of a business opportunity shall file

30  with the department a list of the seller's officers,

31  directors, trustees, general partners, general managers,

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  1  principal executives, and any other persons charged with the

  2  responsibility for the seller's business activities relating

  3  to the sale of business opportunities. This list must be kept

  4  current and shall include the following information:  name,

  5  home and business address, telephone number, driver's license

  6  number, the state in which the driver's license is issued, and

  7  birth date.

  8         Section 12.  Section 559.815, Florida Statutes, is

  9  reenacted to read:

10         559.815  Penalties.--Any person who fails to file with

11  the department as required by s. 559.805 or who commits an act

12  described in s. 559.809 is guilty of a felony of the third

13  degree, punishable as provided in s. 775.082, s. 775.083, or

14  s. 775.084.

15         Section 13.  Subsection (6) of section 559.903, Florida

16  Statutes, is amended to read:

17         559.903  Definitions.--As used in this act:

18         (6)  "Motor vehicle" means any automobile, truck, bus,

19  recreational vehicle, motorcycle, motor scooter, or other

20  motor powered vehicle, but does not include trailers, mobile

21  homes, travel trailers, or trailer coaches without independent

22  motive power, or watercraft or aircraft, or special mobile

23  equipment as defined in s. 316.003(48).

24         Section 14.  Subsection (11) is added to section

25  559.904, Florida Statutes, 1998 Supplement, to read:

26         559.904  Motor vehicle repair shop registration;

27  application; exemption.--

28         (11)  The department shall post a prominent "Closed by

29  Order of the Department" sign on any motor vehicle repair shop

30  that has had its registration suspended or revoked. The

31  department shall also post a sign on any motor vehicle repair

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  1  shop that has been judicially or administratively determined

  2  to be operating without a registration. It is a misdemeanor of

  3  the second degree, punishable as provided in s. 775.082 or s.

  4  775.083, for any person to deface such sign or remove such

  5  sign without written authorization by the department or for

  6  any motor vehicle repair shop to open for operation without a

  7  registration or to open for operation as a motor vehicle

  8  repair shop while its registration is suspended or revoked.

  9  The department may impose administrative sanctions provided

10  for in s. 559.921(4) for violations of this subsection.

11         Section 15.  Paragraph (a) of subsection (3) of section

12  741.0305, Florida Statutes, is amended to read:

13         741.0305  Marriage fee reduction for completion of

14  premarital preparation course.--

15         (3)(a)  All individuals electing to participate in a

16  premarital preparation course shall choose from the following

17  list of qualified instructors:

18         1.  A psychologist licensed under chapter 490.

19         2.  A clinical social worker licensed under chapter

20  491.

21         3.  A marriage and family therapist licensed under

22  chapter 491.

23         4.  A mental health counselor licensed under chapter

24  491.

25         5.  An official representative of a religious

26  institution which is recognized under s. 496.404(19)(20), if

27  the representative has relevant training.

28         6.  Any other provider designated by a judicial

29  circuit, including, but not limited to, school counselors who

30  are certified to offer such courses. Each judicial circuit may

31

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  1  establish a roster of area course providers, including those

  2  who offer the course on a sliding fee scale or for free.

  3         (b)  The costs of such premarital preparation course

  4  shall be paid by the applicant.

  5         Section 16.  This act shall take effect upon becoming a

  6  law.

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  1            *****************************************

  2                          HOUSE SUMMARY

  3
      Revises various provisions relating to consumer
  4    protection under the regulation of the Department of
      Agriculture and Consumer Services. Revises definitions
  5    with respect to ch. 496, F.S., relating to solicitation
      of funds. Provides additional information to be included
  6    within initial registration statements for charitable
      organizations and sponsors. Prohibits an employee of a
  7    charitable organization or sponsor from soliciting
      contributions on behalf of the charitable organization or
  8    sponsor under specified conditions. Revises and provides
      additional information to be included within application
  9    for registration or renewal of registration as a
      professional fundraising consultant. Prohibits a person
10    from acting as a professional fundraising consultant
      under specified circumstances. Revises and provides
11    additional information to be included within application
      for registration or renewal of registration as a
12    professional solicitor. Revises provisions which prohibit
      a person from acting as a professional solicitor. Revises
13    provisions relating to civil remedies and enforcement.

14
      Provides that specified mortgages do not constitute an
15    evidence of indebtedness for purposes of a buyer's right
      to cancel a home solicitation sale.
16

17    Provides additional exclusions from the exemptions to pt.
      IV of ch. 501, F.S., the Florida Telemarketing Act.
18    Provides additional unlawful practices with respect to
      telephone solicitation.
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20    Revises license requirements under the Florida
      Pawnbroking Act. Revises conditions of eligibility for
21    license. Requires specified persons to file certain
      documentation upon application for license. Requires the
22    submission of fingerprints with each initial application
      for licensure. Requires the Division of Consumer Services
23    to submit fingerprints of each applicant for licensure to
      the Florida Department of Law Enforcement and requires
24    the Florida Department of Law Enforcement to forward the
      fingerprints to the Federal Bureau of Investigation.
25    Provides an additional condition under which a pawnbroker
      license may be suspended or revoked.
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27    Revises provisions relating to required information
      contained in disclosure statements with respect to the
28    sale or lease of business opportunities. Requires a
      seller of business opportunities to file additional
29    information with the department and provides a third
      degree felony penalty for failure to file such
30    information.

31
      Revises the definition of "motor vehicle" for the
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CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999                HB 1061

    190-945B-99






  1    purposes of pt. IX of ch. 559, F.S., relating to repair
      of motor vehicles. Requires the department to post a
  2    specified sign at any motor vehicle repair shop that has
      had its registration suspended or revoked or that has
  3    been determined to be operating without a registration.
      Provides a second degree misdemeanor penalty for defacing
  4    or removing such a sign, for operating without a
      registration, or operating with a revoked or suspended
  5    registration. Authorizes the department to impose
      administrative sanctions.
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