Florida Senate - 2009                                    SB 1636
       
       
       
       By Senator Baker
       
       
       
       
       20-01575-09                                           20091636__
    1                        A bill to be entitled                      
    2         An act relating to the sale of business opportunities;
    3         amending s. 559.807, F.S.; deleting provisions that
    4         allow the seller of a business opportunity to post a
    5         certificate of deposit or guaranteed letter of credit
    6         in lieu of a surety bond; increasing the amount of the
    7         required surety bond; providing an effective date.
    8         
    9  Be It Enacted by the Legislature of the State of Florida:
   10         
   11         Section 1. Section 559.807, Florida Statutes, is amended to
   12  read:
   13         559.807 Bond or other security required.—
   14         (1) A If The business opportunity seller makes any
   15  representations set forth in s. 559.801(1)(a)3., the seller must
   16  obtain either have obtained a surety bond issued by a surety
   17  company authorized to do business in this state or have
   18  established a certificate of deposit or a guaranteed letter of
   19  credit with a licensed and insured bank or savings institution
   20  located in the state. The amount of the bond must, certificate
   21  of deposit, or guaranteed letter of credit shall be an amount
   22  not less than $100,000 $50,000.
   23         (2) The bond must, certificate of deposit, or guaranteed
   24  letter of credit shall be in the favor of the department for the
   25  use and benefit of any person who is injured by the fraud,
   26  misrepresentation, breach of contract, financial failure, or
   27  violation of any provision of this part by the seller. Such
   28  liability may be enforced by filing an action at law in a court
   29  of competent jurisdiction without precluding enforcement in an
   30  administrative action pursuant to chapter 120. However, the bond
   31  is, certificate of deposit, or guaranteed letter of credit shall
   32  be amenable to and enforceable only by and through
   33  administrative proceedings before the department. A money
   34  judgment resulting from an action at law, less any award for
   35  costs and attorney's fees, shall be prima facie evidence
   36  sufficient to establish the value of the claim in an
   37  administrative action. It is the intent of the Legislature that
   38  such bond is, certificate of deposit, or guaranteed letter of
   39  credit shall be applicable to and liable only for payment of
   40  claims duly adjudicated by order of the department. The bond is,
   41  certificate of deposit, or guaranteed letter of credit shall be
   42  open to successive claims, but the aggregate amount may not
   43  exceed the amount of the bond, certificate of deposit, or
   44  guaranteed letter of credit.
   45         Section 2. This act shall take effect July 1, 2009.