1. Any person involved in buying, receiving, soliciting, handling, or negotiating agricultural products from or for Florida producers must be licensed and bonded, unless exempt.
2. The purpose of the Florida License and Bond Law is to create a marketplace free of unfair trading practices and defaults, and to ensure that producers receive proper accounting and payment for their products.
3. Chapter 604 of the Florida Statutes governs agricultural laws, and section 604.17 states that it is unlawful for a dealer in agricultural products to engage in business in the state without a state license issued by the Department of Agriculture. 1. Fla. Stat. §604.15(2) defines a “Dealer in agricultural products” as a person or business engaged in purchasing, receiving, or soliciting agricultural products for resale or processing for sale, or acting as an agent or negotiating broker for the sale of agricultural products.
2. “Agricultural products” are defined as natural products of the farm, including fruits, vegetables, livestock, milk, and poultry, but excluding tobacco, sugarcane, timber, forest products, and citrus other than limes.
3. The definition and licensure requirement for dealers in agricultural products include plant nurseries, sod companies, and landscape companies.
4. There are 4 exemptions from the licensure requirements for dealers in agricultural products as set forth in Fla. Stat. § 604.16. 1. To obtain a license, one needs to submit a completed application, pay the required fee, and provide a surety bond or certificate of deposit.
2. The rules for applying for an agricultural license in Florida are outlined in Fla. Stat. §604.18.
3. The applicant must secure a surety bond, and once verified, the state will issue the license for one year.
4. The applicant must provide a surety bond or certificate of deposit of at least $5,000, or a larger amount determined by the Department.
5. The amount of the bond or certificate of deposit may be increased or decreased based on the dollar amount of agricultural products handled by the licensee.
6. The Department may require verified statements or review the licensee’s records to determine the actual dollar amount of agricultural products handled. – Florida Statute §627.751-9 and Section 604.21 govern surety insurance contracts and complaints regarding agricultural products.
– Any producer or producer’s agent who feels damaged by a dealer’s failure to make proper accounting or payment for agricultural products may file a complaint.
– The complaint process is detailed in the Florida Department of Agriculture’s Agricultural Dealer Products Complaint Packet.
– A person, partnership, corporation, or business entity claiming to be damaged by a dealer in agricultural products may file a written claim with the Department.
– A claim must be filed within six months from the date of sale or receipt of the agricultural products.
– Claims may be filed by e-mail, fax, U.S. mail, or private delivery service.
– The original and two copies of the claim form along with three copies of all evidence documenting the sale(s) must be submitted, with original signatures and notarizations.
– In cases of multiple invoices, a summary list of all claimed invoices must accompany the claim.
– Claims against a licensed dealer involving multiple invoices could cover more than one license year, requiring separate claims. 1. Claimants must provide a $50 filing fee for each claim filed with the Department. The filing fee will be added to the total claim amount.
2. Complaints must be filed within 6 months of the date of sale.
3. If multiple claims exist by a producer, dealer, or agent thereof and the combined amounts exceed the total amount of any bond and certificate of deposit, certain sales will not be considered for payment from the bond.
4. Payment from a surety bond or certificate of deposit to a dealer will occur only after all claims of producers or producer’s agents or representatives have been paid in full.
5. Once a final order is issued, the Respondent or the surety (in most cases) is required to pay some or all of the bond claim.
6. Filing a complaint with the Department does not constitute an election of remedies when the same or similar complaint is filed in another venue. 1. The Department of Agriculture can investigate and adjudicate complaints from producers about licensed dealers failing to make proper payments for agricultural products.
2. Violating Florida’s agricultural bond laws can result in a misdemeanor of the second degree, punishable by up to 60 days of imprisonment and a maximum fine of $2500.
3. The law provides protection for plant suppliers or producers against buyers who fail to pay, write bad checks, or declare bankruptcy, and allows the Department of Agriculture to reimburse unpaid balances from the bonds that agricultural dealers are required to post. – It is important to ensure that all buyers are properly licensed as agricultural dealers.
– The credit application should request information about the dealer’s agricultural bond and licensure.
– Verification of the dealer’s information should be done through the Florida Department of Agriculture and Consumer Services’ online listing of licensed agricultural dealers.
– It is advisable to contact the Department’s office to ensure the information is current and accurate.
– It is also important to check for any claims against the licensee’s bond using the Fresh From Florida licensing claims database. 1. It is important to submit a complaint within the date of sale if a company has been “stiffed” by a bonded company.
2. Maintaining a properly documented file with valid contract claims against the company and its officers is essential for any disputed bond claim proceeding.
3. Pursuing remedies against properly perfected construction liens under Fla. Stat. §713 and any available civil actions at law should also be considered when pursuing Agricultural Bond claims.
4. It is important for dealers to obtain licensure to avoid severe penalties.
5. The collection process can be complicated and it is important to engage an attorney who understands the importance of handling debt collections in a timely and appropriate manner.
https://www.jimersonfirm.com/blog/2010/10/using-floridas-agricultural-bond-laws-collection-tool/
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