Senate Bill sb0522

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    Florida Senate - 2005                                   SB 522

    By Senator Lynn





    7-336-05

  1                      A bill to be entitled

  2         An act relating to moving services; amending s.

  3         507.03, F.S.; revising mover registration

  4         requirements; providing for proof of bond or

  5         certificate of deposit in lieu of proof of

  6         insurance coverage; amending s. 507.04, F.S.;

  7         revising a requirement to maintain cargo legal

  8         liability coverage; providing for a bond or

  9         certificate of deposit in lieu of insurance

10         coverage for a mover operating a certain number

11         of vehicles; limiting the use of such bond or

12         certificate of deposit to claims adjudicated by

13         the Department of Agriculture and Consumer

14         Services; providing that aggregate payout by

15         the department for all claims may not exceed

16         the amount of the bond or certificate of

17         deposit; providing an effective date.

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

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21         Section 1.  Subsections (1) and (9) of section 507.03,

22  Florida Statutes, are amended to read:

23         507.03  Registration.--

24         (1)  Each mover shall annually register with the

25  department, providing its legal business and trade name,

26  mailing address, and business locations; the full names,

27  addresses, and telephone numbers of its owners or corporate

28  officers and directors and the Florida agent of the

29  corporation; a statement whether it is a domestic or foreign

30  corporation, its state and date of incorporation, its charter

31  number, and, if a foreign corporation, the date it registered

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    Florida Senate - 2005                                   SB 522
    7-336-05




 1  with the State of Florida, and occupational license where

 2  applicable; the date on which a mover registered its

 3  fictitious name if the mover is operating under a fictitious

 4  or trade name; the name of all other corporations, business

 5  entities, and trade names through which each owner of the

 6  mover operated, was known, or did business as a mover within

 7  the preceding 5 years; and proof of bonding or insurance

 8  coverage as required by this act.

 9         (9)  Each mover shall provide evidence of current and

10  valid insurance coverage or a bond or certificate of deposit

11  as described in s. 507.04.

12         Section 2.  Paragraph (a) of subsection (1) of section

13  507.04, Florida Statutes, is amended to read:

14         507.04  Cargo legal liability valuation and insurance

15  coverage.--

16         (1)  A mover operating in this state shall maintain

17  current and valid cargo legal liability valuation and

18  insurance coverage which includes:

19         (a)1.  For a mover operating three or more vehicles,

20  coverage for cargo legal liability for loss or damage to

21  household goods arising or resulting from the negligence of

22  the mover, its employees, or its agents, in an amount not less

23  than $10,000 per shipment.

24         2.  A mover who operates fewer than three vehicles

25  shall have the option of maintaining the cargo legal liability

26  described in this paragraph or maintaining a performance bond

27  in the amount of $25,000. The surety on such bond shall be a

28  surety company authorized to do business in the state. In lieu

29  of the bond required in this subparagraph, the mover may

30  establish a certificate of deposit in a Florida banking

31  institution in the amount of the bond. The original bond or

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    Florida Senate - 2005                                   SB 522
    7-336-05




 1  certificate of deposit shall be filed with the department and

 2  the department shall be the beneficiary to the document. The

 3  bond or certificate of deposit shall be in favor of the

 4  department for the use and benefit of any consumer who is

 5  injured by the fraud, misrepresentation, breach of contract,

 6  or financial failure of the mover, or by a violation of this

 7  chapter by the mover. Such liability may be enforced by

 8  proceeding in an administrative action or by filing suit in a

 9  court of competent jurisdiction. However, in a court

10  proceeding, the bond or certificate of deposit posted with the

11  department is not amenable or subject to any judgment or other

12  legal process issuing out of or from such court in connection

13  with that lawsuit, but such bond or certificate of deposit

14  shall be amenable to and enforceable only through

15  administrative proceedings before the department. It is the

16  intent of the Legislature that such bond or certificate of

17  deposit shall be applicable and liable only for the payment of

18  claims duly adjudicated by order of the department. The bond

19  or certificate of deposit shall be open to successive claims,

20  but the aggregate amount may not exceed the amount of the bond

21  or certificate of deposit. If the proceeds of the performance

22  bond or certificate of deposit are exhausted, the mover must

23  obtain and maintain an additional bond or certificate of

24  deposit in the amount of $25,000. If a mover does not purchase

25  or obtain an additional bond or certificate of deposit, the

26  department shall revoke the license of that mover.

27         Section 3.  This act shall take effect upon becoming a

28  law.

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    Florida Senate - 2005                                   SB 522
    7-336-05




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 2                          SENATE SUMMARY

 3    Revises registration requirements for moving services.
      Authorizes certain small movers to maintain cargo
 4    liability insurance coverage or maintain a specified
      performance bond. Establishes bond requirements and
 5    guidelines. Provides methods of obtaining satisfaction
      under such bond. Provides penalties. (See bill for
 6    details.)

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