House Bill hb0153

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    Florida House of Representatives - 2002                 HB 153

        By Representative Brutus






  1                      A bill to be entitled

  2         An act relating to heir finders; creating ss.

  3         717.151, 717.152, 717.153, 717.154, 717.155,

  4         and 717.156, F.S.; providing definitions;

  5         requiring registration of heir finders and heir

  6         finder businesses; providing requirements;

  7         specifying qualifications; requiring

  8         examinations; requiring record maintenance;

  9         requiring a bond; providing for license renewal

10         and reactivation; providing for fees; providing

11         for local licensing requirements; providing for

12         licensing of nonresidents; specifying

13         prohibited acts; providing penalties; providing

14         a felony penalty for certain activities;

15         providing for admitting certain documents into

16         evidence in certain hearings; amending s.

17         717.123, F.S.; providing for deposit of certain

18         additional revenues into the Unclaimed Property

19         Trust Fund; amending s. 717.124, F.S.;

20         including heir finders within provisions for

21         distributions of certain property or money by

22         the department; providing an effective date.

23

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

25

26         Section 1.  Sections 717.151, 717.152, 717.153,

27  717.154, 717.155, and 717.156, Florida Statutes, are created

28  to read:

29         717.151  Definitions.--For purposes of this section and

30  ss. 717.152-717.156:

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  1         (1)  "Act as an heir finder" means, for compensation or

  2  gain, or in the expectation of compensation or gain, either

  3  directly or indirectly, locating or offering to locate

  4  unclaimed property for an owner or for an apparent owner,

  5  filing or offering to file a claim for unclaimed property for

  6  an owner or for an apparent owner, purchasing or offering to

  7  purchase the right to claim unclaimed property from an owner

  8  or from an apparent owner, or receiving or soliciting the

  9  receipt of an assignment of unclaimed property from an owner

10  or from an apparent owner.

11         (2)  "Heir finder" means an attorney, Florida-certified

12  public accountant, or private investigator who is licensed to

13  do business in this state and registered as an heir finder.

14         717.152  Heir finder registration.--

15         (1)  Each natural person who acts as an heir finder

16  shall be registered pursuant to this section.

17         (2)  Each application for an heir finder registration

18  shall be in the form prescribed by rule of the department. The

19  department may require each applicant to provide any

20  information reasonably necessary to make a determination of

21  the applicant's eligibility for registration. The department

22  shall issue a registration to any natural person who:

23         (a)  Has submitted to the department a completed

24  application and a nonrefundable fee of $50.

25         (b)  Is an attorney, Florida-certified public

26  accountant, or private investigator licensed to do business in

27  this state.

28         (c)  Obtains a surety bond as required by s. 717.153.

29

30  The department may waive the registration fee and surety bond

31  requirement for good cause shown.

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  1         (3)  Registration as an heir finder is valid for the

  2  remainder of the biennium in which the registration is issued.

  3         (4)  Registration as an heir finder may be canceled if

  4  the registration was issued through mistake or inadvertence of

  5  the department. A notice of cancellation shall be issued by

  6  the department within 90 days after the issuance of the

  7  registration. A notice of cancellation shall be effective upon

  8  receipt. The notice of cancellation shall provide the

  9  registrant with notification of the right to request a hearing

10  within 21 days after the registrant's receipt of the notice of

11  cancellation. A registration shall be reinstated if the

12  applicant can demonstrate that the requirements for obtaining

13  the registration pursuant to this section have been satisfied.

14         (5)  If an heir finder registration has been issued but

15  the check upon which the registration is based is returned due

16  to insufficient funds, the registration shall be deemed

17  canceled. A registration deemed canceled pursuant to this

18  subsection shall be reinstated if the department receives a

19  certified check for the appropriate amount within 30 days

20  after the date the check was returned due to insufficient

21  funds.

22         717.153  Surety bond required.--

23         (1)  Unless waived by the department, no registration

24  as an heir finder shall be issued unless the applicant first

25  provides evidence to the department that the applicant has

26  been issued a current and valid surety bond in a form

27  acceptable to the department and in an amount not to exceed

28  $100,000.  The evidence shall include:

29         (a)  A copy of the surety bond.

30

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  1         (b)  A statement from the surety that the premium for

  2  the period of registration for the bond has been paid in full

  3  by the applicant.

  4         (2)  The surety bond shall be issued for the use and

  5  benefit of the department or any person who suffers or

  6  sustains any loss or damage by reason of any violation of the

  7  provisions of this chapter or misappropriation or mishandling

  8  of funds or property by the licensee or its agents or

  9  employees.  The bond shall be maintained in full force and

10  effect while the applicant is licensed pursuant to s. 717.152.

11  A person shall not conduct business as an heir finder without

12  having a bond in effect.

13         (3)  The liability of the surety under any bond issued

14  pursuant to the requirements of this section shall not exceed

15  in the aggregate the amount of the bond, regardless of the

16  number or amount of any claims filed or which might be

17  asserted against the surety on such bond.

18         (4)(a)  If multiple claims are filed against the surety

19  on any such bond in excess of the amount of the bond, the

20  surety may pay the full amount of the bond to the department

21  and shall not be further liable under the bond. At the time

22  the amount of the bond is paid to the department, the surety

23  shall provide the department with all notices of claim on the

24  bond that the surety has received.  Upon the transfer of the

25  proceeds from the bond to the department, all pending suits

26  for recovery on the bond shall be stayed.

27         (b)  The department shall hold the proceeds from the

28  bond for distribution to claimants.  Within 90 days after

29  receipt of the proceeds from the bond and the notices of claim

30  from the surety, the department shall notice its intent to

31  approve or deny all pending claims for the proceeds of the

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  1  bond.  Claims for payment pending before the department shall

  2  be limited to quantifiable damages that are actual or

  3  compensatory and shall not include costs or attorney's fees.

  4  If the total claims of approved claims exceed the aggregate

  5  amount of the bond, the department shall prorate the payment

  6  based upon the ratio that the person's claim bears to the

  7  total claims filed and approved.

  8         (c)  The department shall publish notice of its intent

  9  to render a decision in the Florida Administrative Weekly.

10  Within 21 days after publication of the notice, any person who

11  has filed, or who intends to file, a claim on the bond may

12  request a hearing.  Failure to request a hearing within 21

13  days after notice constitutes a waiver of any right to a

14  hearing.  A hearing, if requested, shall be governed by

15  chapter 120.

16         717.154  Recordkeeping.--Each heir finder shall

17  maintain, at the principal place of business designated on the

18  registration, all books, accounts, records, and documents

19  necessary to determine the registrant's compliance with ss.

20  717.151-717.156.

21         (1)  The department may authorize maintenance of

22  records at a location other than a principal place of

23  business. The department may require books, accounts, and

24  records to be produced and available at a reasonable and

25  convenient location in this state.

26         (2)  All books, accounts, records, documents, and

27  receipts for expenses paid by the owner's representative on

28  behalf of the owner, including each contract signed by an

29  owner, shall be preserved and kept available for examination

30  by the department for at least 3 years after the date of

31  original entry.

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  1         (3)  The department may prescribe by rule the minimum

  2  information to be shown in the books, accounts, records, and

  3  documents of registrants so that such records will enable the

  4  department to determine the registrant's compliance with this

  5  act.

  6         717.155  Grounds for disciplinary action.--

  7         (1)  The following acts are violations of ss. 717.152,

  8  717.153, and 717.154 and constitute grounds for the

  9  disciplinary actions specified in subsection (2):

10         (a)  Failure to comply with any provision of ss.

11  717.152, 717.153, and 717.154, any rule or order adopted

12  pursuant to such sections, or any written agreement entered

13  into with the department;

14         (b)  Fraud, misrepresentation, deceit, or gross

15  negligence in any unclaimed property transaction;

16         (c)  Fraudulent misrepresentation, circumvention, or

17  concealment of any matter required to be stated or furnished

18  to an owner or apparent owner pursuant to such sections,

19  regardless of reliance by or damage to the owner or apparent

20  owner;

21         (d)  Willful imposition of illegal or excessive charges

22  in any unclaimed property transaction;

23         (e)  False, deceptive, or misleading advertising;

24         (f)  Failure to maintain, preserve, and keep available

25  for examination all books, accounts, or other documents

26  required by such sections, by any rule or order adopted

27  pursuant to such sections, or by any agreement entered into

28  with the department;

29         (g)  Refusal to permit inspection of books and records

30  in an investigation or examination by the department or

31  refusal to comply with a subpoena issued by the department;

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  1         (h)  Criminal conduct in the course of a person's

  2  business; or

  3         (i)  Failure to timely pay any fee, charge, or fine

  4  imposed or assessed pursuant to such sections or any rule

  5  adopted under such sections.

  6         (2)  Upon a finding by the department that any person

  7  has committed any of the acts set forth in subsection (1), the

  8  department may enter an order taking one or more of the

  9  following actions:

10         (a)  Denying a registration pursuant to s. 717.152;

11         (b)  Revoking or suspending a registration previously

12  granted pursuant to s. 717.152;

13         (c)  Placing a registrant or an applicant for a

14  registration on probation for a period of time and subject to

15  such conditions as the department may specify;

16         (d)  Placing permanent restrictions or conditions upon

17  issuance or maintenance of a registration pursuant to s.

18  717.152;

19         (e)  Issuing a reprimand; or

20         (f)  Imposing an administrative fine not to exceed

21  $2,000 for each such act.

22         (3)  In addition to the acts specified in subsection

23  (1), the following shall be grounds for denial of a

24  registration pursuant to such sections, or for revocation,

25  suspension, or restriction of a registration previously

26  granted:

27         (a)  A material misstatement of fact in an application

28  for a registration;

29         (b)  Having a license, a registration, or the

30  equivalent to practice any profession or occupation denied,

31  suspended, revoked, or otherwise acted against by a licensing

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  1  authority in any jurisdiction for fraud, dishonest dealing, or

  2  any act of moral turpitude;

  3         (c)  Pleading nolo contendere to, or having been

  4  convicted or found guilty of, a crime involving fraud,

  5  dishonest dealing, or any act of moral turpitude, regardless

  6  of whether adjudication is withheld; or

  7         (d)  Being insolvent or having a demonstrated lack of

  8  honesty or financial responsibility.

  9         717.156  Evidence; examiner's worksheets, investigative

10  reports, other related documents.--In any hearing in which a

11  financial examiner or investigator acting under authority of

12  this chapter is available for cross-examination, any official

13  written report, worksheet, or other related paper, or a

14  certified copy of such report, worksheet, or related paper,

15  compiled, prepared, drafted, or otherwise made or received by

16  the financial examiner or investigator, after being

17  authenticated by the examiner or investigator, may be admitted

18  as competent evidence upon the oath of the examiner or

19  investigator that the report, worksheet, or related paper was

20  prepared or received as a result of an examination or

21  investigation, conducted pursuant to the authority of this

22  chapter, of the books and records of a registered heir finder

23  or other person acting as an heir finder.

24         Section 2.  Subsection (1) of section 717.123, Florida

25  Statutes, is amended to read:

26         717.123  Deposit of funds.--

27         (1)  All funds received under this chapter, including

28  fees, charges, and fines and the proceeds from the sale of

29  unclaimed property under s. 717.122, shall forthwith be

30  deposited by the department in the Unclaimed Property Trust

31  Fund. The department shall retain, from funds received under

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  1  this chapter, an amount not exceeding $8 million from which

  2  the department shall make prompt payment of claims allowed by

  3  the department and shall pay the costs incurred by the

  4  department in administering and enforcing this chapter. All

  5  remaining funds received by the department under this chapter

  6  shall be deposited by the department into the State School

  7  Fund.

  8         Section 3.  Paragraphs (a), (b), and (c) of subsection

  9  (5) of section 717.124, Florida Statutes, are amended to read:

10         717.124  Filing of claim with department.--

11         (5)(a)  If an owner authorizes an attorney,

12  Florida-certified public accountant, or heir finder private

13  investigative agency which is duly licensed to do business in

14  this state to claim the unclaimed property on the owner's

15  behalf, the department is authorized to make distribution of

16  the property or money in accordance with such power of

17  attorney.

18         (b)1.  Payments of approved claims for unclaimed cash

19  accounts shall be made to the owner after deducting any fees

20  authorized pursuant to a written power of attorney.

21         2.  Payments of fees authorized pursuant to a written

22  power of attorney for approved cash claims shall be forwarded

23  to the designated attorney, Florida-certified public

24  accountant, or heir finder private investigative agency. Such

25  payments may be made by electronic funds transfer and may be

26  made on such periodic schedule as the department may define by

27  rule, provided the payment intervals do not exceed 31 days.

28         3.  Payments of approved claims for unclaimed

29  securities and other intangible ownership interests made to an

30  attorney, Florida-certified public accountant, or heir finder

31  private investigative agency shall be promptly deposited into

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  1  a trust or escrow account which is regularly maintained by the

  2  attorney, Florida-certified public accountant, or heir finder

  3  the private investigative agency in a financial institution

  4  authorized to accept such deposits and located in this state.

  5         (c)  Distribution of unclaimed property by the

  6  attorney, Florida-certified public accountant, or heir finder

  7  private investigative agency to the claimant shall be made

  8  within 10 days following final credit of the deposit into the

  9  trust or escrow account at the financial institution, unless a

10  party to the agreement protests in writing such distribution

11  before it is made.

12         Section 4.  This act shall take effect October 1, 2002.

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14            *****************************************

15                          HOUSE SUMMARY

16
      Requires registration of heir finders and heir finder
17    businesses. Specifies requirements, qualifications,
      examinations, record maintenance, bond, license renewal
18    and reactivation procedures, fees, local licensing
      requirements, licensing of nonresidents, prohibited acts,
19    and penalties. Provides for deposit of fees, charges, and
      fines relating regulation of heir finders into the
20    Unclaimed Property Trust Fund for distribution prior to
      transfer to the State School Fund. Includes heir finders
21    within provisions for distributions of unclaimed property
      or money by the department. See bill for details.
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