Senate Bill sb2086

    Florida Senate - 2007                                  SB 2086

    By Senator Aronberg





    27-1182-07                                          See HB 329

  1                      A bill to be entitled

  2         An act relating to sales representative

  3         contracts involving commissions; amending s.

  4         686.201, F.S.; expanding the definition of the

  5         term "commission"; deleting the requirement for

  6         a written contract between a principal and a

  7         sales representative; requiring payment of

  8         commission within time certain after

  9         termination of contract; providing an effective

10         date.

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

13  

14         Section 1.  Section 686.201, Florida Statutes, is

15  amended 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

21  sales representative for payment by a principal, the rate of

22  which compensation is expressed as a percentage of the dollar

23  amount of orders or sales or fixed fees or retainers for

24  services provided by the sales representative.

25         (b)  "Principal" means a person or business which:

26         1.  Manufactures, produces, imports, or distributes a

27  product or service.

28         2.  Contracts with a sales representative to solicit

29  orders for the product or service.

30         3.  Compensates the sales representative, in whole or

31  in part, by commission.

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






    Florida Senate - 2007                                  SB 2086
    27-1182-07                                          See HB 329




 1         (c)  "Sales representative" means a person or business

 2  which contracts with a principal to solicit orders and who is

 3  compensated, in whole or in part, by commission, but does not

 4  include a person or business which places orders for his or

 5  her own account for resale or a person who is an employee of

 6  the business.

 7         (2)  When a principal contracts with a sales

 8  representative to solicit orders within this state, the

 9  contract shall be in writing and shall set forth the method by

10  which the commission is to be computed and paid. The principal

11  shall provide the sales representative with a signed copy of

12  the contract and shall obtain a signed receipt for the

13  contract from the sales representative.

14         (2)(3)(a)  When the contract between a sales

15  representative and a principal ends is terminated and the

16  contract was not reduced to writing, all commissions due shall

17  be paid within 30 days after termination.

18         (b)  In the event a principal fails to comply with the

19  provisions of paragraph (a), the sales representative has a

20  cause of action for damages equal to triple the amount of

21  commission found to be due. The prevailing party in any such

22  action is entitled to an award of reasonable attorney's fees

23  and court costs.

24         (3)(4)  This section does not apply to persons licensed

25  pursuant to chapter 475 who are performing services within the

26  scope of their license.

27         Section 2.  This act shall take effect July 1, 2007.

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