HB 1231

CS

CHAMBER ACTION

1	The State Resources Council recommends the following:
2
3	Council/Committee Substitute
4	Remove the entire bill and insert:
5	A bill to be entitled
6	An act relating to dealers in agricultural products;
7	amending s. 604.15, F.S.; revising definitions; expanding
8	the list of products covered by the law; defining the
9	terms "negotiating broker" and "producer's agent";
10	amending s. 604.16, F.S.; revising exceptions to
11	provisions regulating dealers; amending s. 604.18, F.S.,
12	relating to applications for dealer licensure; requiring
13	dealers to provide mailing and location address
14	information; requiring dealers to provide certain
15	information relating to the dollar amount of business done
16	or to be done; amending s. 604.19, F.S.; providing
17	requirements relating to cancellation of a bond or
18	certificate of deposit; increasing license fees and
19	delinquent renewal penalties; amending s. 604.20, F.S.;
20	increasing the minimum amount of a bond or certificate of
21	deposit for licensure; providing a calculation for the
22	amount of a bond or certificate of deposit; adding
23	requirements relating to bond or certificate of deposit
24	assignment or agreement; authorizing the Department of
25	Agriculture and Consumer Services to issue a conditional
26	license under certain conditions; amending s. 604.21,
27	F.S.; increasing the minimum claim amount and requiring a
28	complaint filing fee; providing requirements for
29	submission of a complaint and payment for multiple claims;
30	authorizing a dealer in agricultural products to file a
31	complaint against another dealer in agricultural products;
32	limiting the time a complaint may be held in abeyance;
33	authorizing review of a final order; clarifying
34	distribution of bond or certificate of deposit proceeds;
35	amending s. 604.22, F.S.; revising recordkeeping
36	requirements of licensees; clarifying application of
37	provisions; amending ss. 604.23 and 604.25, F.S.;
38	clarifying application of provisions; amending s. 604.30,
39	F.S.; clarifying that a violator of provisions regulating
40	dealers in agricultural products may be a person,
41	partnership, corporation, or other business entity;
42	increasing the maximum administrative fine and the fine
43	for continued violation of an administrative order;
44	providing an effective date.
45
46	Be It Enacted by the Legislature of the State of Florida:
47
48	Section 1.  Section 604.15, Florida Statutes, is amended to
49	read:
50	604.15  Dealers in agricultural products; definitions.--For
51	the purpose of ss. 604.15-604.34, the following words and terms,
52	when used, shall be construed to mean:
53	(1)(3)  "Agricultural products" means the natural products
54	of the farm, nursery, grove, orchard, vineyard, garden, and
55	apiary (raw or manufactured); sod; tropical foliage;
56	horticulture; hay; livestock; milk and milk products; poultry
57	and poultry products; the fruit of the saw palmetto (meaning the
58	fruit of the Serenoa repens); and limes (meaning the fruit
59	Citrus aurantifolia, variety Persian, Tahiti, Bearss, or Florida
60	Key limes); and any other nonexempt agricultural products
61	produced in the state, except tobacco, tropical foliage,
62	sugarcane, timber and timber by-products, forest products as
63	defined in s. 591.17, and citrus other than limes.
64	(2)(1)  "Dealer in agricultural products" means any person,
65	partnership, corporation, or other business entity, whether
66	itinerant or domiciled within this state, engaged within this
67	state in the business of purchasing, receiving, or soliciting
68	agricultural products from the producer or the producer's her or
69	his agent or representative for resale or processing for sale;
70	acting as an agent for such producer in the sale of agricultural
71	products for the account of the producer on a net return basis;
72	or acting as a negotiating broker between the producer or the
73	producer's her or his agent or representative and the buyer.
74	(3)(6)  "Delivery ticket" means a document provided to a
75	grain producer by a grain dealer in conjunction with the
76	delivery of grain to the grain dealer.
77	(4)(2)  "Department" means the Department of Agriculture
78	and Consumer Services.
79	(5)(7)  "Grain" means any food or feed grains, which
80	include, but are not limited to, soybeans, corn, wheat, oats,
81	and rye.
82	(6)(8)  "Grain dealer" means any person engaged in this
83	state in:
84	(a)  Buying, receiving, selling, exchanging, negotiating,
85	or processing for resale, or soliciting the sale, resale,
86	exchange, or transfer of, grain purchased from the producer or
87	the producer's her or his agent or representative or received
88	from the producer to be handled on a net return basis; or
89	(b)  Receiving grain for storage.
90	(7)  "Negotiating broker" means any person in the state
91	engaged in the business of negotiating sales and purchases of
92	agricultural products with a dealer in agricultural products for
93	or on behalf of the producer or the producer's agent or
94	representative. The negotiating broker never takes title to the
95	agricultural product involved in the sale or purchase or handles
96	the proceeds therefrom.
97	(8)(4)  "Net return basis" means the sale of agricultural
98	products for the account of a producer person, other than the
99	seller, wherein the seller acts as the agent for the producer
100	owner and pays the producer owner of such products the net
101	proceeds after subtracting all authorized and allowable
102	deductions.
103	(9)(5)  "Producer" means any grower producer of
104	agricultural products produced in the state.
105	(10)  "Producer's agent" means the seller of agricultural
106	products for the account of a producer or group of producers on
107	a net return basis, wherein the producer's agent acts as the
108	agent for the producer or group of producers and pays the
109	producer of such products all of the net proceeds after
110	subtracting all authorized and allowable deductions. Allowable
111	deductions may include, but are not limited to: packing charges,
112	shipping charges, boxes, crates, billing, commission fees,
113	cooling charges, pallets, and other deductible charges or fees
114	agreed upon by the producer and producer's agent.
115	Section 2.  Subsections (2) and (4) of section 604.16,
116	Florida Statutes, are amended to read:
117	604.16  Exceptions to provisions of ss. 604.15-
118	604.34.--Except for s. 604.22(2), the provisions of ss. 604.15-
119	604.15-604.34 do not apply to:
120	(2)  A dealer in agricultural products All persons who pays
121	buy for cash and pay at the time of purchase with United States
122	cash currency or a cash equivalent, such as a money order,
123	cashier's check, wire transfer, electronic funds transfer, or
124	debit card.
125	(4)  Dealers who operate exclusively on a retail basis and
126	who purchase less than $1,000 worth of agricultural products
127	from Florida producers or their agents or representatives during
128	the peak month of such purchases within the calendar year.
129	Section 3.  Section 604.18, Florida Statutes, is amended to
130	read:
131	604.18  Application; form; contents.--Every dealer in
132	agricultural products, desiring to transact business within the
133	state directly with a Florida producer, a producer's agent or
134	representative, or a negotiating broker, shall, prior to
135	transacting any business as such, file an application for such
136	license with the department. License shall be renewed annually
137	on its anniversary date. The application shall be on a form
138	furnished by the department and, together with such other
139	information as the department shall require, shall state:
140	(1)  The kind or kinds of agricultural products the
141	applicant proposes to handle.;
142	(2)  The full name or title of the person, partnership,
143	corporation, or other business entity and applicant, or if the
144	applicant be an association or copartnership, the name of each
145	member of such association or copartnership, or if the applicant
146	be a corporation, the name and mailing address of each owner,
147	partner, officer, or managing agent. officer of the corporation;
148	(3)  The names of buyers or other local agents of the
149	applicant, if any.;
150	(4)  The cities and towns within which places of business
151	of the applicant will be located, together with the street or
152	mailing address of each.; and
153	(5)  The federal employer's identification number of the
154	applicant, if any.
155	(6)  The primary mailing address and physical address for
156	each place of business. A dealer in agricultural products must
157	have on file with the department the address of the dealer's
158	primary place of business prior to engaging in business as a
159	dealer in agricultural products in this state. Prior to changing
160	the address of the primary place of business, the dealer must
161	notify the department of the address of the new primary place of
162	business. All documents relating to the provisions of ss.
163	604.15-604.34 and chapter 120 shall be served to the last
164	address of record; to a corporation's registered agent or the
165	registered agent's substitute; in the absence of a registered
166	agent, to an owner, officer, partner, employee, or managing
167	agent of the business entity; or as designated by the applicant
168	in the applicant's application.
169	(7)  The dollar amount of business done by a renewal
170	applicant with Florida producers and their agents or
171	representatives during the month in which the maximum dollar
172	amount of agricultural products was purchased or handled as a
173	dealer in agricultural products or the dollar amount of business
174	estimated to be done by a first-time applicant with Florida
175	producers and their agents or representatives during the month
176	in which the estimated maximum dollar amount of agricultural
177	products will be purchased or handled as a dealer in
178	agricultural products.
179	Section 4.  Section 604.19, Florida Statutes, is amended to
180	read:
181	604.19  License; fee; bond; certificate of deposit;
182	penalty.--Unless the department refuses the application on one
183	or more of the grounds provided in this section, it shall issue
184	to an applicant, upon the payment of required proper fees and
185	the execution and delivery of a bond or certificate of deposit
186	as provided in this section, a state license entitling the
187	applicant to conduct business as a dealer in agricultural
188	products for a 1-year period to coincide with the effective
189	period of the bond or certificate of deposit furnished by the
190	applicant. During the 1-year period covered by a license, if the
191	supporting surety bond or certificate of deposit is canceled for
192	any reason, the license shall automatically expire on the date
193	the surety bond or certificate of deposit terminates, unless an
194	acceptable replacement is in effect before the date of
195	termination so that continual coverage occurs for the remaining
196	period of the license. A surety company shall give the
197	department a 30-day written notice of cancellation by certified
198	mail in order to cancel a bond. Cancellation of a bond or
199	certificate of deposit shall not relieve a surety company or
200	financial institution of liability for purchases or sales
201	occurring while the bond or certificate of deposit was in
202	effect. The license fee, which must be paid for the principal
203	place of business for a dealer in agricultural products, shall
204	be based upon the amount of the dealer's surety bond or
205	certificate of deposit furnished by each dealer under the
206	provisions of s. 604.20 and may not exceed $500 $300. For each
207	additional place in which the applicant desires to conduct
208	business and which the applicant names in the application, the
209	additional license fee must be paid but may not exceed $100 $50
210	annually. Should any dealer in agricultural products fail,
211	refuse, or neglect to apply and qualify for the renewal of a
212	license on or before the date of expiration thereof, a penalty
213	not to exceed $100 $35 shall apply to and be added to the
214	original license fee and shall be paid by the applicant before
215	the renewal license may be issued. The department by rule shall
216	prescribe fee amounts sufficient to fund ss. 604.15-604.34.
217	Section 5.  Section 604.20, Florida Statutes, is amended to
218	read:
219	604.20  Bond or certificate of deposit prerequisite;
220	amount; form.--
221	(1)  Before any license is issued, the applicant therefor
222	shall make and deliver to the department a surety bond or
223	certificate of deposit in the amount of at least $5,000 $3,000
224	or in such greater amount as the department may determine, not
225	exceeding the maximum amount of business done or estimated to be
226	done in any month by the applicant. No bond or certificate of
227	deposit may be in an amount less than $5,000. The penal sum of
228	the bond or certificate of deposit to be furnished to the
229	department by an applicant for license as a dealer in
230	agricultural products shall be in an amount equal to twice the
231	dollar amount of agricultural products handled for a Florida
232	producer or a producer's agent or representative, by purchase or
233	otherwise, during the month of maximum transaction in such
234	products during the preceding 12-month period. An applicant for
235	license who has not handled agricultural products for a Florida
236	producer or a producer's agent or representative, by purchase or
237	otherwise, during the preceding 12-month period shall furnish a
238	bond or certificate of deposit in an amount equal to twice the
239	estimated dollar amount of such agricultural products to be
240	handled, by purchase or otherwise, during the month of maximum
241	transaction during the next immediate 12 months. Such bond or
242	certificate of deposit shall be provided or assigned in the
243	exact name in which the dealer will conduct business subject to
244	the provisions of ss. 604.15-604.34. Such bond must be executed
245	by a surety company corporation authorized to transact business
246	in the state. For the purposes of ss. 604.19-604.21, the term
247	"certificate of deposit" means a certificate of deposit at any
248	recognized financial institution doing business in the United
249	States. No certificate of deposit may be accepted in connection
250	with an application for a dealer's license unless the issuing
251	institution is properly insured by either the Federal Deposit
252	Insurance Corporation or the Federal Savings and Loan Insurance
253	Corporation. Such bond or any certificate of deposit assignment
254	or agreement shall be upon a form prescribed or approved by the
255	department and shall be conditioned to secure the faithful
256	accounting for and payment, in the manner prescribed by s.
257	604.21(9), to producers or their agents or representatives of
258	the proceeds of all agricultural products handled or purchased
259	by such dealer and to secure payment to dealers who sell
260	agricultural products to such dealer. Such bond or certificate
261	of deposit assignment or agreement shall include terms binding
262	the instrument to the Commissioner of Agriculture. A certificate
263	of deposit shall be presented with an assignment of applicant's
264	rights in the certificate in favor of the Commissioner of
265	Agriculture on a form prescribed by the department and with a
266	letter from the issuing institution acknowledging that the
267	assignment has been properly recorded on the books of the
268	issuing institution and will be honored by the issuing
269	institution. Such assignment shall be irrevocable while the
270	dealer's license is in effect and for an additional period of 6
271	months after the termination or expiration of the dealer's
272	license provided no complaint is pending against the licensee.
273	If a complaint is pending, the assignment shall remain in effect
274	until all actions on the complaint have been finalized. The
275	certificate of deposit may be released by the assignee of the
276	financial institution to the licensee or the licensee's
277	successors, assignee, or heirs if no claims are pending against
278	the licensee before the department at the conclusion of 6 months
279	after the last effective date of the license. No certificate of
280	deposit shall be accepted that contains any provision that would
281	give the issuing institution any prior rights or claim on the
282	proceeds or principal of such certificate of deposit. The
283	department shall determine by rule the maximum amount of bond or
284	certificate of deposit required of a dealer and whether an
285	annual or continuous bond or certificate of deposit will be
286	required.
287	(2)  The amount of such bond or certificate of deposit
288	shall, upon the order of the department at any time, be
289	increased, if in its discretion the department finds such
290	increase to be warranted by the dollar amount volume of
291	agricultural products being handled, by purchase or otherwise,
292	by the licensee. In the same manner, the amount of such bond or
293	certificate of deposit may be decreased when a decrease in the
294	dollar amount volume of products handled, by purchase or
295	otherwise, warrants such decrease. These provisions apply to any
296	bond or certificate of deposit, regardless of the anniversary
297	date of its issuance, expiration, cancellation, or renewal.
298	(3)  In order to effectuate the purposes of this section,
299	the department or its agents may require from any applicant or
300	licensee verified statements of the dollar amount volume of the
301	applicant's or licensee's her or his business or may review the
302	applicant's applicant or licensee's records at the applicant's
303	or licensee's her or his place of business during normal
304	business hours to determine the actual dollar amount of
305	agricultural products handled, by purchase of otherwise for the
306	purpose of determining her or his volume of business. The
307	failure of a licensee to furnish such statement, to make such
308	records available, or to make and deliver a new or additional
309	bond or certificate of deposit shall be cause for suspension of
310	the licensee's license. If the department finds such failure to
311	be willful, the license may be revoked.
312	(4)  The department may issue a conditional license to an
313	applicant who is unable to provide a single bond or certificate
314	of deposit in the full amount required by the calculation in
315	subsection (1). The conditional license shall remain in effect
316	for a 1-year period to coincide with the effective period of the
317	bond or certificate of deposit furnished by the applicant. The
318	applicant must provide at least the minimum $5,000 bond or
319	certificate of deposit as provided in subsection (1) together
320	with one of the following:
321	(a)  A notarized affidavit limiting the handling of
322	agricultural products, by purchase or otherwise, during their
323	largest month to a minimum of one-half the amount of the bond or
324	certificate of deposit provided by the applicant;
325	(b)  A notarized affidavit stating that any subject
326	agricultural products, handled by purchase or otherwise,
327	exceeding one-half of the amount of the bond or certificate of
328	deposit will be handled under the exemption provisions set forth
329	in s. 604.16(2); or
330	(c)  A second bond or certificate of deposit in such an
331	amount that, when the penal sum of the second bond or
332	certificate of deposit is added to the penal sum of the first
333	bond or certificate of deposit, the combined penal sum will
334	equal twice the dollar amount of agricultural products handled
335	for a Florida producer or a producer's agent or representative,
336	by purchase or otherwise, during the month of maximum
337	transaction in such products during the preceding 12-month
338	period.
339
340	The department or its agents may require from any licensee who
341	is issued a conditional license verified statements of the
342	volume of the licensee's business or may review the licensee's
343	records at the licensee's place of business during normal
344	business hours to determine the licensee's adherence to the
345	conditions of the license. The failure of a licensee to furnish
346	such statement or to make such records available shall be cause
347	for suspension of the licensee's conditional license. If the
348	department finds such failure to be willful, the conditional
349	license may be revoked.
350	Section 6.  Section 604.21, Florida Statutes, is amended to
351	read:
352	604.21  Complaint; investigation; hearing.--
353	(1)(a)  Any person, partnership, corporation, or other
354	business entity claiming herself or himself to be damaged by any
355	breach of the conditions of a bond or certificate of deposit
356	assignment or agreement given by a licensed dealer in
357	agricultural products as hereinbefore provided may enter
358	complaint thereof against the dealer and against the surety
359	company, if any, to the department, which complaint shall be a
360	written statement of the facts constituting the complaint. Such
361	complaint shall include all agricultural products defined in s.
362	604.15(1), as well as any additional charges necessary to
363	effectuate the sale unless these additional charges are already
364	included in the total delivered price. Such complaint shall be
365	filed within 6 months from the date of sale in instances
366	involving direct sales or from the date on which the
367	agricultural product was received by the dealer in agricultural
368	products, as agent, to be sold for the producer. No complaint
369	shall be filed pursuant to this section unless the transactions
370	involved total at least $500 $250 and occurred in a single
371	license year. Before a complaint can be processed, the
372	complainant must provide the department with a $50 filing fee.
373	In the event the complainant is successful in proving the claim,
374	the dealer in agricultural products shall reimburse the
375	complainant for the $50 filing fee as part of the settlement of
376	the claim.
377	(b)  To be considered timely filed, a complaint together
378	with any required affidavits or notarizations must be received
379	by the department within 6 months after the date of sale by
380	electronic transmission, facsimile, regular mail, certified
381	mail, or private delivery service. If the complaint is sent by a
382	service other than electronic mail or facsimile, the mailing
383	shall be postmarked or dated on or before the 6-month deadline
384	to be accepted as timely filed.
385	(c)  When multiple claims exist by a producer, a producer's
386	agent or representative, or a dealer and the combined
387	adjudicated amounts exceed the total amount of any bond and
388	certificate of deposit, sales occurring 120 or more days after
389	the oldest sale stated in any complaint filed by the same
390	producer, producer's agent or representative, or dealer shall
391	not be considered for payment from the proceeds of the bond or
392	certificate of deposit in the event that the surety company or
393	financial institution is called on to make payment.
394	(d)  A person, partnership, corporation, or other business
395	entity filing a complaint shall submit to the department the
396	following documents: three completed complaint affidavits on a
397	form provided by the department with an original signature of an
398	owner, partner, general partner, or corporate officer and an
399	original notarization on each affidavit. If the complaint is
400	filed by electronic transmission or facsimile, the original
401	affidavits and original notarizations shall be filed with the
402	department not later than the close of business of the tenth
403	business day following the electronic transmission or facsimile
404	filing. Attached to each complaint affidavit shall be copies of
405	all documents to support the complaint. Supporting documents may
406	be copies of invoices, bills of lading, packing or shipping
407	documents, demand letters, or any other documentation to support
408	the claim. In cases in which there are multiple invoices being
409	claimed, a summary list of all claimed invoices must accompany
410	the complaint.
411	(e)  A dealer in agricultural products who is in compliance
412	with ss. 604.15-604.34 may file a complaint with the department
413	against another licensed dealer in agricultural products.
414	However, payment from a bond or certificate of deposit to a
415	dealer shall occur only after all claims of producers or
416	producers' agents or representatives have been paid in full
417	except as provided pursuant to paragraph (c).
418	(f)  Filing a complaint with the department does not
419	constitute an election of remedies when the same or similar
420	complaint is filed in another venue.
421	(g)  The surety company or financial institution shall be
422	responsible for payment of properly established complaints filed
423	against a dealer, notwithstanding the dealer's filing of a
424	bankruptcy proceeding.
425	(2)  Upon the filing of such complaint in the manner herein
426	provided, the department shall investigate the matters
427	complained of; whereupon, if, in the opinion of the department,
428	the facts contained in the complaint warrant such action, the
429	department shall serve notice of the filing of complaint send to
430	the dealer against whom the complaint has been filed at the last
431	address of record in question, by certified mail, notice of the
432	filing of the complaint. Such notice shall be accompanied by a
433	true copy of the complaint. A copy of such notice and complaint
434	shall also be served sent to the surety company, if any, that
435	provided the bond for the dealer, which surety company shall
436	become party to the action. Such notice of the complaint shall
437	inform the dealer of a reasonable time within which to answer
438	the complaint by advising the department in writing that the
439	allegations in the complaint are admitted or denied or that the
440	complaint has been satisfied. Such notice shall also inform the
441	dealer and the surety company or financial institution, if any,
442	of a right to a hearing on the complaint, if requested.
443	(3)  If the dealer files an answer admitting admits the
444	allegations of the complaint and the department determines
445	through inquiry of the complainant that the dealer has failed
446	but fails to satisfy same within 21 days after receipt of the
447	notice of the filing of a complaint by any party whose
448	substantial interests are determined the time fixed by the
449	department, the department shall thereupon order payment by the
450	dealer of the amount found owed. In the event a party files a
451	request that the complaint be held in abeyance pending a
452	settlement agreement, the period of abeyance shall not exceed 6
453	months and successive periods of abeyance shall not be granted.
454	(4)  If the dealer files an answer and , in her or his
455	answer, denies the allegations of the complaint and waives a
456	hearing, the department may order a hearing or enter an order
457	based on the facts and circumstances set forth in the complaint
458	and the respondent's answer thereto. If the department
459	determines the complaint has not been established or fails to
460	meet the provisions of this section, the order shall, among
461	other things, dismiss the proceedings. If the department
462	determines that the allegations of the complaint have been
463	established, it shall enter its findings of fact accordingly and
464	thereupon enter its order adjudicating the amount of
465	indebtedness due to be paid by the dealer to the complainant.
466	(5)  Any order entered by the department pursuant to this
467	section shall become final and effective on the date filed with
468	the department's agency clerk 14 days after issue if neither the
469	department nor a party whose material interest is affected by
470	the order requests a hearing on the order within 14 days
471	following the date of issue.
472	(6)  Any party whose substantial material interest is
473	affected by a proceeding pursuant to this section shall be
474	granted a hearing upon request as provided by chapter 120. Such
475	hearing shall be conducted pursuant to chapter 120. The final
476	order of the department, when issued pursuant to the recommended
477	order of an administrative law judge, shall be final and
478	effective on the date filed with the department's agency clerk.
479	Any party to these proceedings adversely affected by the final
480	order is entitled to seek review of the final order pursuant to
481	s. 120.68 and the Florida Rules of Appellate Procedure. Should a
482	complaint forwarded by the department to the Division of
483	Administrative Hearings be settled prior to a hearing pursuant
484	to chapter 120, the department shall issue a notice closing the
485	complaint file upon receipt of the administrative law judge's
486	order closing the complaint file, and the matter before the
487	department shall be closed accordingly upon issuance.
488	(7)  Any indebtedness set forth in a departmental order
489	against a dealer shall be paid by the dealer within 15 days
490	after such order becomes final.
491	(8)  Upon the failure by a dealer to comply with an order
492	of the department directing payment, the department shall, in
493	instances involving bonds, call upon the surety company to pay
494	over to the department out of the bond posted by the surety
495	company for such dealer or, in instances involving certificates
496	of deposit, call upon the financial institution issuing such
497	certificate to pay over to the department out of the certificate
498	under the conditions of the assignment or agreement, the amount
499	called for in the order of the department, not exceeding the
500	amount of the bond or the principal of the certificate of
501	deposit. If the bond or the principal of the certificate of
502	deposit is insufficient to pay in full the amount due each
503	complainant as set forth in the order of the department, the
504	department shall distribute the proceeds pro rata among such
505	complainants. The proceeds from a bond or the principal from a
506	certificate of deposit shall be paid directly to the department
507	to be distributed by it to successful complainants, except the
508	accrued interest on a certificate of deposit shall be paid to
509	the dealer. Such funds shall be considered trust funds in the
510	hands of the department for the exclusive purpose of satisfying
511	duly established complaints. Payments made to the department
512	pursuant to this section shall be considered payments made upon
513	demand and may not be considered voluntary payments.
514	(9)  Payments from a surety company or proceeds from a
515	certificate of deposit shall be paid first to the producer or
516	the producer's agent or representative in the amount of the
517	producer's claims in full if such proceeds are sufficient for
518	such purpose and, if not, then in pro rata shares to such
519	producer or producer's agent or representative. If additional
520	proceeds exist in the hands of the department after all claims
521	of a producer and a producer's agent or representative have been
522	paid in full, the balance of such proceeds shall be paid to
523	claimants who are licensed dealers in agricultural products,
524	either in whole or in pro rata portion, as the aggregate of
525	their claims may bear to the amount of such additional proceeds.
526	(10)(9)  Nothing in this section may be construed as
527	relieving a surety company from responsibility for payment on
528	properly established complaints against dealers involved in a
529	federal bankruptcy proceeding and against whom the department is
530	prohibited from entering an order.
531	(11)(10)  Upon the failure of a surety company to comply
532	with a demand for payment of the proceeds on a bond for a dealer
533	in agricultural products, a complainant who is entitled to such
534	proceeds, in total or in part, may, within a reasonable time,
535	file in the circuit court a petition or complaint setting forth
536	the administrative proceeding before the department and ask for
537	final order of the court directing the surety company to pay the
538	bond proceeds to the department for distribution to the
539	complainants. If in such suit the complainant is successful and
540	the court affirms the demand of the department for payment, the
541	complainant shall be awarded all court costs incurred therein
542	and also a reasonable attorney's fee to be fixed and collected
543	as part of the costs of the suit. In lieu of such suit, the
544	department may enforce its final agency action in the manner
545	provided in s. 120.69.
546	Section 7.  Section 604.22, Florida Statutes, is amended to
547	read:
548	604.22  Dealers to keep records; contents.--
549	(1)  Each licensee, while acting as agent for a producer,
550	shall make and preserve for at least 1 year a record of each
551	transaction, specifying the name and address of the producer for
552	whom she or he acts as agent; the date of receipt; the kind,
553	quality, and quantity of agricultural products received; the
554	name and address of the purchaser of each package of
555	agricultural products; the price for which each package was
556	sold; the amount of any additional charges necessary to
557	effectuate the sale; the amount and explanation of any
558	adjustments given; and the net amount due from each purchaser.
559	An account of sales shall be furnished each producer within 48
560	hours after the sale of such agricultural products unless
561	otherwise agreed to in a written contract or verifiable oral
562	agreement. Such account of sales shall clearly show the sale
563	price of each lot of agricultural products sold; all adjustments
564	to the original price, along with an explanation of such
565	adjustments; and an itemized showing of all marketing costs
566	deducted by the licensee, along with the net amount due the
567	producer. The licensee shall make the payment to the producer
568	within 5 days of the licensee's receipt of payment unless
569	otherwise agreed to in a written contract or verifiable oral
570	agreement.
571	(2)(a)  The provisions of s. 604.16(2), (3), and (4)
572	notwithstanding, any person, partnership, corporation, or other
573	business entity, except a person described in s. 604.16(1), who
574	possesses and offers for sale agricultural products is required
575	to possess and display, upon the request of any department
576	representative or state, county, or local law enforcement
577	officer, an invoice, bill of sale, manifest, or other written
578	document showing the date of sale, the name and address of the
579	seller, and the kind and quantity of products for all such
580	agricultural products.
581	(b)  Any person who violates the provisions of this
582	subsection is guilty of a misdemeanor of the second degree,
583	punishable as provided in s. 775.082 or s. 775.083.
584	Section 8.  Section 604.23, Florida Statutes, is amended to
585	read:
586	604.23  Examination of records, sales, accounts, books, and
587	other documents.--The department shall have power to
588	investigate, upon complaint of any interested person or upon its
589	own initiative, the record of any dealer in agricultural
590	products applicant or licensee, or any transaction involving the
591	solicitation, receipt, sale or attempted sale of agricultural
592	products, the failure to make proper and true accounts and
593	settlements at prompt and regular intervals, the making of false
594	statements as to condition, quality or quantity of goods
595	received or while in storage, the making of false statements as
596	to market conditions with intent to deceive, or the failure to
597	make payment for goods received, or other alleged injurious
598	transactions. For such purposes the department or its agents may
599	examine, at the place or places of business of the dealer in
600	agricultural products, the applicant or licensee, her or his
601	ledgers, books of accounts, memoranda, and other documents which
602	relate to the transaction involved, and may take testimony
603	thereon under oath.
604	Section 9.  Paragraphs (a) and (d) of subsection (1) of
605	section 604.25, Florida Statutes, are amended to read:
606	604.25  Refusal to grant, or suspension or revocation of,
607	license.--
608	(1)  The department may decline to grant a license or may
609	suspend or revoke a license already granted if the applicant or
610	licensee has:
611	(a)  Suffered a monetary money judgment to be entered
612	against the applicant or licensee her or him upon which
613	execution has been returned unsatisfied;
614	(d)  Made any false statement or statements as to
615	condition, quality, or quantity of goods received or held for
616	sale when she or he could have ascertained the true condition,
617	quality, or quantity could have been ascertained by reasonable
618	inspection;
619	Section 10.  Section 604.30, Florida Statutes, is amended
620	to read:
621	604.30  Penalties; injunctive relief; administrative
622	fines.--
623	(1)  Any dealer in agricultural products who violates the
624	provisions of ss. 604.15-604.34, or who interferes with an agent
625	of the department in the enforcement of ss. 604.15-604.34, is
626	guilty of a misdemeanor of the second degree, punishable as
627	provided in s. 775.082 or s. 775.083, and for a second or
628	subsequent offense is guilty of a misdemeanor of the first
629	degree, punishable as provided in s. 775.082 or s. 775.083.
630	(2)  In addition to the remedies provided in this chapter
631	and notwithstanding the existence of any adequate remedy at law,
632	when the department has probable cause to believe that any
633	person, partnership, corporation, or other business entity has
634	violated any provision of this chapter or any rule adopted
635	pursuant thereto, the department may issue and deliver to such
636	person, partnership, corporation, or other business entity a
637	notice to cease and desist from such violation. For the purpose
638	of enforcing a cease and desist order, the department may file a
639	proceeding in the name of the state seeking issuance of an
640	injunction or writ of mandamus against any person, partnership,
641	corporation, or other business entity who violates any
642	provisions of such order, and such injunction shall be issued
643	without bond.
644	(3)(a)  In addition to the penalties provided in this
645	section, the department may, after notice and hearing, impose a
646	fine not exceeding $2,500 $1,000 for the violation of any of the
647	provisions of ss. 604.15-604.34 or the rules adopted thereunder
648	against any dealer in agricultural products; such fine, when
649	imposed and paid, shall be deposited by the department into the
650	General Inspection Trust Fund.
651	(b)  Whenever any administrative order has been made and
652	entered by the department imposing a fine pursuant to this
653	subsection, the order shall specify the amount of the fine and a
654	time limit of no more than 15 days for the payment thereof. Upon
655	the failure of the dealer involved to pay the fine within that
656	time, the dealer's license as dealer in agricultural products
657	shall be subject to suspension or revocation and a fine not to
658	exceed $100 of $50 a day shall be imposed on the dealer while
659	the dealer she or he is in violation of such order.
660	Section 11.  This act shall take effect October 1, 2005.

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