CS for SB 2198 First Engrossed 20092198e1 1 A bill to be entitled 2 An act relating to tobacco settlement agreements; 3 expressing legislative intent to amend s. 569.23, 4 F.S., relating to appeal bond requirements for certain 5 cigarette manufacturers; expressing legislative intent 6 relating to security necessary to stay execution of 7 judgments in actions by certain former class action 8 members, the form of the security, the level of 9 appeals to which the security is applicable, the 10 amount of the security based on the number of appeals, 11 changes in the amount of security based on changes in 12 the number of appeals, claims against the security, 13 and maintenance of the security by the clerk of the 14 Supreme Court; expressing legislative intent to 15 authorize a court to increase the security if assets 16 are dissipated; expressing the legislative intent to 17 provide for the future expiration of s. 569.23, F.S.; 18 providing an effective date. 19 20 Be It Enacted by the Legislature of the State of Florida: 21 22 Section 1. (1) It is the intent of the Legislature to amend 23 s. 569.23, Florida Statutes, to prescribe the security required 24 to be provided to stay the execution of a judgment in a civil 25 action against a signatory, or successor, parent, or affiliate 26 of a signatory, to a tobacco settlement agreement brought by or 27 on behalf of persons who claim or have been determined to be 28 members of a former class action that was decertified in whole 29 or in part. 30 (2) It is further the intent of the Legislature that: 31 (a) The security shall be provided through the posting with 32 or payment into the registry of the clerk of the Supreme Court 33 of a supersedeas bond, other surety, or cash. 34 (b) The security shall apply during the pendency of all 35 appeals or discretionary appellate reviews in Florida courts. 36 (c) The total amount of security that must be provided by 37 all appellants collectively in a single judgment is based upon 38 the total number of judgments by circuit courts of this state on 39 appeal at the time the security is provided. In cases having 40 multiple appellants, an individual appellant shall provide 41 security with respect to the percent or amount of liability 42 specifically allocated against that appellant in the judgment, 43 or, if liability is not specifically allocated in the judgment, 44 for a share of the unallocated portion of the judgment 45 determined by dividing the judgment equally among all 46 appellants. A judgment may not be stayed until the entire amount 47 of security required by all appellants collectively is provided. 48 (d) The amount of security shall be tiered using the 49 following number ranges of judgments on appeal: 50 51 52 AMOUNT OF MINIMUM MAXIMUM 53 54 55 56 57 58 59 60 61 62 63 64 65 (e) When the number of judgments on appeal changes so that 66 the total is within a larger or smaller range, a party may 67 petition the court to change the security amount consistent with 68 the statutory appeal bond rights prescribed in this act. If the 69 amount of security on deposit is changed by the court, the 70 security shall be modified as follows: 71 1. If the security on deposit is in the form of a 72 supersedeas bond or other surety, the appellant shall replace 73 that supersedeas bond or other surety with security in the new 74 amount as required by this act. 75 2. If the security on deposit is in the form of cash, the 76 clerk of the Supreme Court shall, as appropriate: 77 a. Refund to the appellant the difference between the 78 amount of security on deposit and the reduced amount of security 79 required; 80 b. Hold the difference for future judgments against that 81 appellant; or 82 c. Record any additional cash provided by the appellant 83 consistent with a court order. 84 (f) Any security provided by an appellant for any single 85 judgment is intended to secure the collection of that judgment 86 against the appellant in cases covered by this act. A claim may 87 not be made against such security unless an appellant fails to 88 pay a judgment in a case covered by this act within 30 days 89 after the judgment becomes final. For purposes of this act, a 90 judgment is “final” following the completion of all appeals or 91 discretionary appellate reviews, including reviews by the United 92 States Supreme Court. If an appellant fails to pay a judgment 93 within such time period: 94 1. Any stay of execution required in favor of the appellant 95 under this act shall be immediately lifted by operation of law, 96 unless a stay is provided pursuant to some other provision of 97 law, rule of court, or judicial order; or 98 2. Any appellee against whom a stay of execution of any 99 single judgment against the appellant was in effect under this 100 act may petition the trial court or the Supreme Court for an 101 order directing the clerk of the Supreme Court to make equitable 102 distribution of such security to the appellee whose judgment 103 against such appellant was secured by operation of this act. 104 (g) The clerk of the Supreme Court shall collect fees for 105 receipt of deposits under this act as authorized by ss. 28.231 106 and 28.24(10)(a). In addition, for as long as any cash remains 107 on deposit with the clerk, the clerk of the Supreme Court is 108 entitled to regularly receive as an additional fee, the net 109 investment income earned thereon. The clerk shall use the 110 services of the Chief Financial Officer, as needed, for the 111 custody and management of all bonds, other surety, or cash 112 posted or deposited with the clerk. All fees collected under 113 this act shall be deposited into the State Courts Revenue Trust 114 Fund for use as specified by law. 115 (3) It is further the intent of the Legislature to allow a 116 court to order a specific defendant that dissipates assets in 117 order to avoid payment of a judgment to increase the surety for 118 that defendant. 119 (4) It is further the intent of the Legislature that s. 120 569.23, Florida Statutes, expire on December 31, 2012. 121 Section 2. This act shall take effect upon becoming a law, 122 and applies to all judgments entered on or after that date.