Florida Senate - 2008 CS for CS for SB 1310
By the Committees on Criminal Justice; Military Affairs and Domestic Security; and Senator Baker
591-08212-08 20081310c2
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A bill to be entitled
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An act relating to sellers of travel; amending s. 559.927,
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F.S.; revising the definition of "prearranged travel,
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tourist-related services, or tour-guide services";
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defining "certifying party" and "terrorist state";
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amending s. 559.928, F.S.; revising provisions relating to
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registration as a seller of travel; revising registration
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fees; creating s. 559.9285, F.S.; requiring a seller of
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travel to annually certify to the Department of
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Agriculture and Consumer Services the scope of its
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business activities by filing a disclosure statement;
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categorizing certifying parties; providing requirements of
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a certifying party that changes its scope of business;
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requiring that such certifying party provide to the
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department an appropriate bond; requiring the department
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to specify by rule the form of certification; specifying
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required certification information; amending s. 559.929,
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F.S.; revising requirements with respect to the
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performance bond that must accompany registration or an
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application for registration as a seller of travel;
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specifying amounts of bonds for certification categories;
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eliminating alternative means of satisfying security
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requirements; providing for priority of payment with
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respect to such bonds; revising conditions under which the
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department may annually waive the bond; precluding
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specified certification categories from waiver of bond;
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amending s. 559.9335, F.S.; providing that it is a
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violation of the Florida Sellers of Travel Act to offer to
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sell, at wholesale or retail, prearranged travel, tourist-
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related services, or tour-guide services for individuals
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or groups directly to any terrorist state which originate
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in Florida without disclosing such business activities in
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a certification filed with the department and to violate
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any state or federal law restricting or prohibiting
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commerce with terrorist states; amending s. 559.935, F.S.;
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revising provisions that exempt certain sellers of travel
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and affiliates thereof from specified registration,
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security, disclosure, and recordkeeping requirements;
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amending s. 559.9355, F.S.; imposing an administrative
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fine for each act or omission in violation of the
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prohibited offer to sell, at wholesale or retail,
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prearranged travel, tourist-related services, or tour-
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guide services for individuals or groups directly to any
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terrorist state which originate in Florida without
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disclosing such business activities in a certification or
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in violation of any state or federal law restricting or
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prohibiting commerce with terrorist states; amending s.
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559.936, F.S.; authorizing the department to seek a
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specified civil penalty for each act or omission in
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violation of the prohibited offer to sell, at wholesale or
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retail, prearranged travel, tourist-related services, or
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tour-guide services for individuals or groups directly to
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any terrorist state which originate in Florida without
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disclosing such business activities in a certification or
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in violation of any state or federal law restricting or
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prohibiting commerce with terrorist states; amending s.
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559.937, F.S.; providing a criminal penalty for a
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violation of the Florida Sellers of Travel Act which
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directly or indirectly pertains to an offer to sell, at
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wholesale or retail, prearranged travel, tourist-related
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services, or tour-guide services for individuals or groups
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directly to any terrorist state which originate in
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Florida; providing an effective date.
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Be It Enacted by the Legislature of the State of Florida:
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Section 1. Subsections (2) through (5), (7) through (10),
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and (11) of section 559.927, Florida Statutes, are renumbered as
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subsections (3) through (6), (8) through (11), and (13),
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respectively, subsection (6) is renumbered as subsection (7) and
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amended, and new subsections (2) and (12) are added to that
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section, to read:
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559.927 Definitions.--For the purposes of this part, the
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term:
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(2) "Certifying party" means a seller of travel registering
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under s. 559.928 or a seller of travel who is exempt under s.
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559.935(2) or (3).
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(7)(6) "Prearranged travel, tourist-related services, or
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tour-guide services" includes, but is not limited to, car
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rentals, lodging, transfers, and sightseeing tours and all other
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such services which are reasonably related to air, sea, rail,
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motor coach, or other medium of transportation, or accommodations
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for which a purchaser receives a premium or contracts or pays
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prior to or after departure. These terms also include services
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for which a purchaser, whose legal residence is outside the
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United States, contracts or pays prior to departure, and any
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arrangement by which a purchaser prepays for, receives a
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reservation or any other commitment to provide services prior to
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departure for, or otherwise arranges for travel directly to a
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terrorist state and which originates in Florida.
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(12) "Terrorist state" means any state, country, or nation
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designated by the United States Department of State as a state
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sponsor of terrorism.
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Section 2. Subsections (1) and (2) of section 559.928,
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Florida Statutes, are amended to read:
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559.928 Registration.--
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(1) Each seller of travel shall annually register with the
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department, providing: its legal business or trade name, mailing
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address, and business locations; the full names, addresses, and
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telephone numbers, and social security numbers of its owners or
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corporate officers and directors and the Florida agent of the
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corporation; a statement whether it is a domestic or foreign
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corporation, its state and date of incorporation, its charter
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number, and, if a foreign corporation, the date it registered
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with the State of Florida, and occupational license where
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applicable; the date on which a seller of travel registered its
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fictitious name if the seller of travel is operating under a
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fictitious or trade name; the name of all other corporations,
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business entities, and trade names through which each owner of
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the seller of travel operated, was known, or did business as a
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seller of travel within the preceding 5 years; a list of all
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authorized independent agents, including the agent's trade name,
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full name, mailing address, business address, and telephone
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numbers, and social security number; the business location and
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address of each branch office and full name and address of the
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manager or supervisor; the certification required under s.
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559.9285; and proof of purchase of adequate bond or establishment
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of a letter of credit or certificate of deposit as required in
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this part. A certificate evidencing proof of registration shall
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be issued by the department and must be prominently displayed in
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the seller of travel's primary place of business.
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(2)(a) Registration fees shall be as follows:
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1. Three hundred dollars $300 per year per registrant
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certifying its business activities under s. 559.9285(1)(a).
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2. One thousand dollars per year per registrant certifying
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its business activities under s. 559.9285(1)(b).
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3. Twenty-five hundred dollars per year per registrant
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certifying its business activities under s. 559.9285(1)(c).
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(b) All amounts collected shall be deposited by the Chief
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Financial Officer to the credit of the General Inspection Trust
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Fund of the Department of Agriculture and Consumer Services
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pursuant to s. 570.20, for the sole purpose of administration of
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this part.
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Section 3. Section 559.9285, Florida Statutes, is created
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to read:
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559.9285 Certification of business activities.--
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(1) Each certifying party, as defined in s. 559.927(2):
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(a) Which does not offer for sale, at wholesale or retail,
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prearranged travel, tourist-related services, or tour-guide
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services for individuals or groups directly to any terrorist
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state and which originate in Florida;
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(b) Which offers for sale, at wholesale or retail, only
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prearranged travel, tourist-related services, or tour-guide
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services for individuals or groups directly to any terrorist
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state and which originate in Florida, but engages in no other
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business dealings or commerce with any terrorist state; or
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(c) Which offers for sale, at wholesale or retail,
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prearranged travel, tourist-related services, or tour-guide
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services for individuals or groups directly to any terrorist
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state and which originate in Florida, and also engages in any
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other business dealings or commerce with any terrorist state,
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shall annually certify its business activities by filing a
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disclosure statement with the department which accurately
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represents the scope of the seller's business activities
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according to the criteria provided in paragraph (a), paragraph
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(b), or paragraph (c).
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(2)(a) If a certifying party changes the scope of the
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business activities certified pursuant to subsection (1), the
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certifying party shall file the following with the department no
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later than 15 days following the change in activities:
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1. An amended certificate pursuant to subsection (1); and
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2. The applicable registration fee pursuant to s. 559.928.
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(b) Within 15 days after filing the amended certificate,
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the certifying party shall provide to the department a bond in
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the proper amount for the certified business activity pursuant to
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s. 559.929.
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(3) The department shall specify by rule the form of each
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certification under this section which shall include the
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following information:
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(a) The legal name, any trade names or fictitious names,
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mailing address, physical address, telephone number or numbers,
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facsimile number or numbers, all Internet and electronic contact
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information, and registration number, if applicable, of the
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certifying party.
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(b) Each terrorist state with which the certifying party
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engages in any business or commerce.
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(c) The legal name, any trade names or fictitious names,
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mailing address, physical address, telephone number or numbers,
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facsimile number or numbers, and all Internet and electronic
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contact information of every other commercial entity with which
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the certifying party engages in business or commerce that is
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related in any way to the certifying party's business or commerce
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with any terrorist state. The information disclosed pursuant to
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this paragraph does not constitute customer lists, customer
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names, or trade secrets protected under s. 570.544(7).
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(d) The type of all prearranged travel, tourist-related
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services, or tour-guide services that the certifying party offers
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for sale to individuals or groups traveling directly to any
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terrorist state and that originate in Florida, and the frequency
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with which such services are offered.
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Section 4. Section 559.929, Florida Statutes, is amended to
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read:
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559.929 Security requirements.--
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(1) An application must be accompanied by a performance
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bond in an amount set by the department under paragraph (a),
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paragraph (b), or paragraph (c) not to exceed $25,000, or in the
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amount of $50,000 if the seller of travel is offering vacation
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certificates. The surety on such bond shall be a surety company
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authorized to do business in the state.
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(a) Each seller of travel that certifies its business
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activities under s. 559.9285(1)(a) shall provide a performance
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bond in an amount not to exceed $25,000, or in the amount of
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$50,000 if the seller of travel is offering vacation
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certificates.
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(b) Each seller of travel that certifies its business
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activities under s. 559.9285(1)(b) shall provide a performance
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bond in an amount not to exceed $100,000, or in the amount of
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$150,000 if the seller of travel is offering vacation
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certificates.
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(c) Each seller of travel that certifies its business
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activities under s. 559.9285(1)(c) shall provide a performance
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bond in an amount not to exceed $250,000, or in the amount of
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$300,000 if the seller of travel is offering vacation
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certificates.
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(2) In lieu of the performance bond required in this part,
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a registrant or applicant for registration may establish a
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certificate of deposit or an irrevocable letter of credit in a
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Florida banking institution in the amount of the performance
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bond. The department shall be the beneficiary to this certificate
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of deposit, and the original shall be filed with the department.
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Any such letter of credit shall provide that the issuer will give
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the department not less than 120 days written notice prior to
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terminating or refusing to renew the letter of credit.
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(2)(3) The bond, letter of credit, or certificate of
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deposit shall be in favor of the department for the use and
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benefit of any traveler who is injured by the fraud,
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misrepresentation, breach of contract, financial failure, or
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violation of any provision of this part by the seller of travel.
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Such liability may be enforced either by proceeding in an
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administrative action as specified in subsection (3) (4) or by
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filing a judicial suit at law in a court of competent
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jurisdiction. However, in such court suit the bond, letter of
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credit, or certificate of deposit posted with the department
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shall not be amenable or subject to any judgment or other legal
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process issuing out of or from such court in connection with such
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lawsuit, but such bond, letter of credit, or certificate of
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deposit shall be amenable to and enforceable only by and through
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administrative proceedings before the department. It is the
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intent of the Legislature that such bond, letter of credit, or
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certificate of deposit shall be applicable and liable only for
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the payment of claims duly adjudicated by order of the
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department. The bond, letter of credit, or certificate of deposit
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shall be open to successive claims, but the aggregate amount may
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not exceed the amount of the bond, letter of credit, or
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certificate of deposit. In addition to the foregoing, a bond
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provided by a registrant or applicant for registration which
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certifies its business activities under s. 559.9285(1)(b) or (c)
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shall be in favor of the department, with payment in the
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following order of priority:
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(a) All expenses for prosecuting the registrant or
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applicant in any administrative or civil action under this part,
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including fees for attorneys and other professionals, court costs
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or other costs of the proceedings, and all other expenses
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incidental to the action.
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(b) All costs and expenses of investigation prior to the
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commencement of an administrative or civil action under this
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part.
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(c) Any unpaid administrative fine imposed by final order
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or any unpaid civil penalty imposed by final judgment under this
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part.
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(d) Damages or compensation for any traveler injured as
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provided in this subsection.
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(3)(4) Any traveler may file a claim against the bond,
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letter of credit, or certificate of deposit which shall be made
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in writing to the department within 120 days after an alleged
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injury has occurred or is discovered to have occurred. The
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proceedings shall be held in accordance with ss. 120.569 and
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(4)(5) In any situation in which the seller of travel is
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currently the subject of an administrative, civil, or criminal
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action by either the department, the Department of Legal Affairs,
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or the state attorney concerning compliance with this part, the
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right to proceed against the bond, letter of credit, or
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certificate of deposit, as provided in subsection (3) (4), shall
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be suspended until after any enforcement action becomes final.
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(5)(6) The department may waive the bond, letter of credit,
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or certificate of deposit requirement on an annual basis if the
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seller of travel has had 5 or more consecutive years of
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experience as a seller of travel in Florida in compliance with
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this part, has not had any civil, criminal, or administrative
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action instituted against the seller of travel in the vacation
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and travel business by any governmental agency or any action
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involving fraud, theft, misappropriation of property, violation
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of any statute pertaining to business or commerce with any
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terrorist state, or moral turpitude, and has a satisfactory
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consumer complaint history with the department, and certifies its
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business activities under s. 559.9285. Such waiver may be revoked
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if the seller of travel violates any provision of this part. A
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seller of travel that certifies its business activities under s.
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559.9285(1)(b) or (c) is not entitled to the waiver provided in
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this subsection.
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Section 5. Subsection (2) of section 559.9335, Florida
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Statutes, is amended, subsections (22), (23), and (24) are
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renumbered as subsections (24), (25), and (26), respectively, and
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new subsections (22) and (23) are added to that section, to read:
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559.9335 Violations.--It is a violation of this part for
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any person:
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(2) To conduct business as a seller of travel without an
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annual purchase of a performance bond or establishment of a
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letter of credit or certificate of deposit in the amount set by
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the department unless exempt pursuant to s. 559.935.
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(22) To offer to sell, at wholesale or retail, prearranged
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travel, tourist-related services, or tour-guide services for
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individuals or groups directly to any terrorist state and which
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originate in Florida, without disclosing such business activities
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in a certification filed under s. 559.9285(1)(b) or (c).
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(23) To violate any state or federal law restricting or
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prohibiting commerce with terrorist states.
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Section 6. Subsections (2), (3), and (4) of section
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559.935, Florida Statutes, are amended to read:
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559.935 Exemptions.--
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559.932 shall not apply to:
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(a) Sellers of travel directly issuing airline tickets who
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have contracted with the Airlines Reporting Corporation for the
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most recent consecutive 3 years or more under the same ownership
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and control, and who do not offer vacation certificates, and who
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annually certify their business activities under s.
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559.9285(1)(a).; or
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(b) Sellers of travel offering vacation certificates who
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have contracted with the Airlines Reporting Corporation for the
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most recent consecutive 5 years or more under the same ownership
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and control and who annually certify their business activities
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under s. 559.9285(1)(a).
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This exemption does not apply to sellers of travel certifying
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their business activities under s. 559.9285(1)(b) or (c).
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559.932 shall also not apply to a seller of travel that is an
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affiliate of an entity exempt pursuant to subsection (2) subject
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to the following conditions:
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(a) In the event the department finds the affiliate does
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not have a satisfactory consumer complaint history or the
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affiliate fails to respond to a consumer complaint within 30
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days, the related seller of travel exempt pursuant to subsection
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(2) shall be liable for the actions of the affiliate, subject to
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(b) In the event the department is unable to locate an
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affiliate, the related seller of travel exempt pursuant to
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subsection (2) shall be fully liable for the actions of the
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affiliate, subject to the remedies provided in ss. 559.9355 and
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(c) In order to obtain an exemption under this subsection,
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the affiliate shall file an affidavit of exemption on a form
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prescribed by the department and shall certify its business
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activities under s. 559.9285(1)(a). The affidavit of exemption
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shall be executed by a person who exercises identical control
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over the seller of travel exempt pursuant to subsection (2) and
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the affiliate. Failure to file an affidavit of exemption or
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certification under s. 559.9285(1)(a) prior to engaging in seller
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of travel activities shall subject the affiliate to the remedies
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(d) Revocation by the department of an exemption provided
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to a seller of travel under subsection (2) shall constitute
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automatic revocation by law of an exemption obtained by an
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affiliate under the subsection.
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(e) This subsection shall not apply to:
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1. An affiliate that independently qualifies for another
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exemption under this section s. 559.935.
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2. An affiliate that sells, or offers for sale, vacation
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certificates.
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3. An affiliate that certifies its business activities
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under s. 559.9285(1)(b) or (c).
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(f) For purposes of this section, an "affiliate" means an
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entity that meets the following:
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1. The entity has the identical ownership as the seller of
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travel that is exempt under subsection (2).
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2. The ownership controlling the seller of travel that is
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exempt under subsection (2) also exercises identical control over
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the entity.
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3. The owners of the affiliate hold the identical
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percentage of voting shares as they hold in the seller of travel
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that is exempt under subsection (2).
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(4) The department may revoke the exemption provided in
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subsection (2) or subsection (3) if the department finds that the
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seller of travel does not have a satisfactory consumer complaint
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history, has been convicted of a crime involving fraud, theft,
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misappropriation of property, deceptive or unfair trade
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practices, or moral turpitude, or has not complied with the terms
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of any order or settlement agreement arising out of an
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administrative or enforcement action brought by a governmental
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agency or private person based on conduct involving fraud, theft,
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misappropriation of property, deceptive or unfair trade
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practices, or moral turpitude.
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Section 7. Section 559.9355, Florida Statutes, is amended
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to read:
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559.9355 Administrative remedies; penalties.--
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(1) The department may enter an order doing one or more of
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the following if the department finds that a person has violated
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or is operating in violation of any of the provisions of this
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part or the rules or orders issued thereunder:
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(a) Issuing a notice of noncompliance pursuant to s.
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(b) Imposing an administrative fine not to exceed $5,000
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for each act or omission.
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(c) Imposing an administrative fine not to exceed $10,000
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for each act or omission in violation of s. 559.9335(22) or (23).
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(d)(c) Directing that the person cease and desist specified
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activities.
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(e)(d) Refusing to register or canceling or suspending a
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registration.
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(f)(e) Placing the registrant on probation for a period of
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time, subject to such conditions as the department may specify.
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(g)(f) Canceling an exemption granted under s. 559.935.
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(2) The administrative proceedings which could result in
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the entry of an order imposing any of the penalties specified in
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subsection (1) are governed by chapter 120.
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(3) The department has the authority to adopt rules
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pursuant to chapter 120 to implement this section and ss.
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Section 8. Subsections (3) through (6) of section 559.936,
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Florida Statutes, are renumbered as subsections (4) through (7),
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respectively, and a new subsection (3) is added to that section,
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to read:
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559.936 Civil penalties; remedies.--
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(3) The department may seek a civil penalty of up to
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$10,000 for each act or omission in violation of s. 559.9335(22)
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or (23).
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Section 9. Section 559.937, Florida Statutes, is amended to
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read:
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559.937 Criminal penalties.--Any person or business that
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which violates this part:
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(1) Commits a misdemeanor of the first degree, punishable
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(2) Which violation directly or indirectly pertains to an
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offer to sell, at wholesale or retail, prearranged travel,
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tourist-related services, or tour-guide services for individuals
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or groups directly to any terrorist state and which originate in
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Florida, commits a felony of the third degree, punishable as
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Section 10. This act shall take effect July 1, 2008.
CODING: Words stricken are deletions; words underlined are additions.