HB 1293

1	A bill to be entitled
2	An act relating to pyramid sales schemes; amending s.
3	849.091, F.S.; deleting a provision declaring pyramid
4	sales schemes to be a lottery and providing a criminal
5	penalty for participating in such schemes; providing an
6	effective date.
7
8	Be It Enacted by the Legislature of the State of Florida:
9
10	Section 1.  Section 849.091, Florida Statutes, is amended
11	to read:
12	849.091  Chain letters, pyramid clubs, etc., declared a
13	lottery; criminal penalty prohibited; penalties.--
14	(1)  The organization of any chain letter club, pyramid
15	club, or other group organized or brought together under any
16	plan or device whereby fees or dues or anything of material
17	value to be paid or given by members thereof are to be paid or
18	given to any other member thereof, which plan or device includes
19	any provision for the increase in such membership through a
20	chain process of new members securing other new members and
21	thereby advancing themselves in the group to a position where
22	such members in turn receive fees, dues, or things of material
23	value from other members, is hereby declared to be a lottery,
24	and whoever shall participate in any such lottery by becoming a
25	member of, or affiliating with, any such group or organization
26	or who shall solicit any person for membership or affiliation in
27	any such group or organization commits a misdemeanor of the
28	first degree, punishable as provided in s. 775.082 or s.
29	775.083.
30	(2)  A "pyramid sales scheme," which is any sales or
31	marketing plan or operation whereby a person pays a
32	consideration of any kind, or makes an investment of any kind,
33	in excess of $100 and acquires the opportunity to receive a
34	benefit or thing of value which is not primarily contingent on
35	the volume or quantity of goods, services, or other property
36	sold in bona fide sales to consumers, and which is related to
37	the inducement of additional persons, by himself or herself or
38	others, regardless of number, to participate in the same sales
39	or marketing plan or operation, is hereby declared to be a
40	lottery, and whoever shall participate in any such lottery by
41	becoming a member of or affiliating with, any such group or
42	organization or who shall solicit any person for membership or
43	affiliation in any such group or organization commits a
44	misdemeanor of the first degree, punishable as provided in s.
45	775.082 or s. 775.083. For purposes of this subsection, the term
46	"consideration" and the term "investment" do not include the
47	purchase of goods or services furnished at cost for use in
48	making sales, but not for resale, or time and effort spent in
49	the pursuit of sales or recruiting activities.
50	Section 2.  This act shall take effect upon becoming a law.

CODING: Words stricken are deletions; words underlined are additions.