| 1 | A bill to be entitled |
| 2 | An act relating to sales representative contracts |
| 3 | involving commissions; amending s. 686.201, F.S.; |
| 4 | expanding the definition of the term "commission"; |
| 5 | deleting requirement for written contract between a |
| 6 | principal and a sales representative; requiring payment of |
| 7 | commission within time certain after termination of |
| 8 | contract; providing an effective date. |
| 9 |
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| 10 | Be It Enacted by the Legislature of the State of Florida: |
| 11 |
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| 12 | Section 1. Section 686.201, Florida Statutes, is amended |
| 13 | to read: |
| 14 | 686.201 Sales representative contracts involving |
| 15 | commissions; requirements; termination of agreement; civil |
| 16 | remedies.-- |
| 17 | (1) As used in this act, the term: |
| 18 | (a) "Commission" means compensation accruing to a sales |
| 19 | representative for payment by a principal, the rate of which |
| 20 | compensation is expressed as a percentage of the dollar amount |
| 21 | of orders or sales or fixed fees or retainers for services |
| 22 | provided by the sales representative. |
| 23 | (b) "Principal" means a person or business which: |
| 24 | 1. Manufactures, produces, imports, or distributes a |
| 25 | product or service. |
| 26 | 2. Contracts with a sales representative to solicit orders |
| 27 | for the product or service. |
| 28 | 3. Compensates the sales representative, in whole or in |
| 29 | part, by commission. |
| 30 | (c) "Sales representative" means a person or business |
| 31 | which contracts with a principal to solicit orders and who is |
| 32 | compensated, in whole or in part, by commission, but does not |
| 33 | include a person or business which places orders for his or her |
| 34 | own account for resale or a person who is an employee of the |
| 35 | business. |
| 36 | (2) When a principal contracts with a sales representative |
| 37 | to solicit orders within this state, the contract shall be in |
| 38 | writing and shall set forth the method by which the commission |
| 39 | is to be computed and paid. The principal shall provide the |
| 40 | sales representative with a signed copy of the contract and |
| 41 | shall obtain a signed receipt for the contract from the sales |
| 42 | representative. |
| 43 | (2)(3)(a) When the contract between a sales representative |
| 44 | and a principal ends is terminated and the contract was not |
| 45 | reduced to writing, all commissions due shall be paid within 30 |
| 46 | days after termination. |
| 47 | (b) In the event a principal fails to comply with the |
| 48 | provisions of paragraph (a), the sales representative has a |
| 49 | cause of action for damages equal to triple the amount of |
| 50 | commission found to be due. The prevailing party in any such |
| 51 | action is entitled to an award of reasonable attorney's fees and |
| 52 | court costs. |
| 53 | (3)(4) This section does not apply to persons licensed |
| 54 | pursuant to chapter 475 who are performing services within the |
| 55 | scope of their license. |
| 56 | Section 2. This act shall take effect July 1, 2007. |