| 1 | A bill to be entitled |
| 2 | An act relating to sales representative contracts |
| 3 | involving commissions; amending s. 686.201, F.S.; revising |
| 4 | definitions; providing for application to certain persons |
| 5 | as well as businesses; including services as well as |
| 6 | products; providing for application to retail as well as |
| 7 | wholesale transactions; increasing damages under certain |
| 8 | actions for compliance; specifying nonapplication to |
| 9 | certain licensed persons performing services within the |
| 10 | scope of their license; providing an effective date. |
| 11 |
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| 12 | Be It Enacted by the Legislature of the State of Florida: |
| 13 |
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| 14 | Section 1. Section 686.201, Florida Statutes, is amended |
| 15 | to read: |
| 16 | 686.201 Sales representative contracts involving |
| 17 | commissions; requirements; termination of agreement; civil |
| 18 | remedies.-- |
| 19 | (1) As used in this act, the term: |
| 20 | (a) "Commission" means compensation accruing to a sales |
| 21 | representative for payment by a principal, the rate of which |
| 22 | compensation is expressed as a percentage of the dollar amount |
| 23 | of orders or sales. |
| 24 | (b) "Principal" means a person or business which who does |
| 25 | not have a permanent or fixed place of business in this state |
| 26 | and who: |
| 27 | 1. Manufactures, produces, imports, or distributes a |
| 28 | product or service for wholesale, except for fresh commodities.; |
| 29 | 2. Contracts with a sales representative to solicit orders |
| 30 | for the product or service.; and |
| 31 | 3. Compensates the sales representative, in whole or in |
| 32 | part, by commission. |
| 33 | (c) "Sales representative" means a person or business |
| 34 | which who contracts with a principal to solicit wholesale orders |
| 35 | and who is compensated, in whole or in part, by commission, but |
| 36 | does not include a person or business which who places orders |
| 37 | for his or her own account for resale or a person who is an |
| 38 | employee of the business. |
| 39 | (2) When a principal contracts with a sales representative |
| 40 | to solicit wholesale orders within this state, the contract |
| 41 | shall be in writing and shall set forth the method by which the |
| 42 | commission is to be computed and paid. The principal shall |
| 43 | provide the sales representative with a signed copy of the |
| 44 | contract and shall obtain a signed receipt for the contract from |
| 45 | the sales representative. |
| 46 | (3)(a) When the contract between a sales representative |
| 47 | and a principal is terminated and the contract was not reduced |
| 48 | to writing, all commissions due shall be paid within 30 days |
| 49 | after of termination. |
| 50 | (b) In the event a principal fails to comply with the |
| 51 | provisions of paragraph (a), the sales representative has a |
| 52 | cause of action for damages equal to triple double the amount of |
| 53 | commission found to be due. The prevailing party in any such |
| 54 | action is entitled to an award of reasonable attorney's fees and |
| 55 | court costs. |
| 56 | (4) This section does not apply to persons licensed |
| 57 | pursuant to chapter 475 who are performing services within the |
| 58 | scope of their license. |
| 59 | Section 2. This act shall take effect upon becoming a law. |