s. 499.003 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 499.005

(15) "Legend drug" means any drug which can be dis­pensed only by the prescription of a licensed practition­er and which drug on its label must bear either the words:

(a) "Caution: Federal Law Prohibits Dispensing With­out Prescription";

(b) "Caution: Florida Law Prohibits Dispensing With­out Prescription"; or

(c) "Caution: Federal Law Restricts This Drug to use by or on the Order of a Licensed Veterinarian."

(16) "Manufacturer" means a person who prepares, derives, or produces a drug, device, or cosmetic as de­fined in ss. 499.001-499.081. However, this definition does not apply to manufacturers of interstate propri­etary drugs, but manufacturers of legend drugs, de­vices, and cosmetics are required to comply with ss. 499.001-499.081. Pharmacies are specifically excluded from this definition if they are acting in the course of their professional practice as defined in chapter 465 and rules promulgated thereunder.

(17) "New drug" means: (a) Any drug the composition of which is such that

such drug is not generally recognized, among experts qualified by scientific training and experience to evalu­ate the safety and effectiveness of drugs, as safe and effective for use under the conditions prescribed, rec­ommended, or suggested in the labeling thereof; or

(b) Any drug the composition of which is such that such drug, as a result of investigations to determine its safety and effectiveness for use under such conditions, has been so recognized, but which drug has not, other than in such investigations, been used to a material ex­tent or for a material time under such conditions.

(18) "Official compendium" means the official United States Pharmacopoeia, or any supplement thereto.

(19) "Person" includes individuals, partnerships, cor­porations, and associations.

(20) "Proprietary drug" means a patent or over-the­counter drug in its unbroken, original package, which drug is sold to the public by, or under the authority of, the manufacturer or primary distributor thereof and is not misbranded under the provisions of ss. 499.001-499.081.

(21) "Repackager" means a person who repacks, rela­bels, or manipulates a drug which originally was in a unit sealed by a manufacturer. However, this definition does not apply to persons who repackage only interstate pa­tent or proprietary preparations as defined in the Florida Pharmacy Act. Pharmacies are specifically exempted from this definition if they are acting in the course of their professional practice as defined in chapter 465 and rules promulgated thereunder.

(22) "Technical panel" means the Florida Drug and Cosmetic Technical Review Panel as provided for in s. 499.02.

(23) "Wholesaler" means a person acting as a jobber, wholesale merchant, or broker, or agent thereof, who sells or distributes for resale any drug as defined in ss. 499.001-499.081 . However, this definition does not ap­ply to persons who sell only interstate patent or propri­etary preparations as defined in the Florida Pharmacy Act. Pharmacies are specifically excluded from this defi­nition if they are acting in the course of their professional

practice as defined in chapter 465 and rules promulgat­ed thereunder.

History.-s. 34, ch. 82-225; s. 105, ch. 83-218; s. 1, ch. 83-265; s. 1, ch. 84-115; s. 1, ch. 87-57; s. 3, ch. 88-159 . •Note.-Repealed effective October 1, 1992, by s. 1, ch . 83-265, and scheduled

for review pursuant to s. 11 .61 in advance of that date. cf.-ch. 465 Florida Pharmacy Act.

s. 465.003 Florida Pharmacy Act ; definitions. s. 465.025 Substitution of drugs; definitions.

1499.005 Prohibited acts.-The following acts, and the causing thereof, within this state are prohibited:

(1) The manufacture, repackaging, sale, delivery, or holding or offering for sale of any drug, device, or cos­metic that is adulterated or misbranded or has otherwise been rendered unfit for human or animal use.

(2) The adulteration or misbranding of any drug, de­vice, or cosmetic.

(3) The receipt of any drug, device, or cosmetic that is adulterated or misbranded, and the delivery or prof­fered delivery thereof for pay or otherwise.

(4) The sale, delivery, holding, or offering of any agent or product in violation of ss . 499.001-499.081 .

(5) The dissemination of any false advertisement. (6) The refusal to permit entry or inspection by the

department of factories , warehouses, or establishments in which drugs, devices, or cosmetics are manufactured, processed, repackaged, or held; the refusal to permit entry by the department into any vehicle being used to transport drugs, devices, or cosmetics; or the refusal to permit the taking of samples by the department.

(7) The giving of a guaranty or undertaking with re­spect to a drug, device, or cosmetic, which guaranty or undertaking is false, except by a person who relied on a guaranty or undertaking to the same effect signed by, and containing the name and address of, the person re­siding in this state from whom he received in good faith the drug, device, or cosmetic.

(8) The alteration, mutilation, destruction, oblitera­tion , or removal of the whole or any part of the labeling of a drug, device, or cosmetic, or the doing of any other act with respect to a drug, device, or cosmetic, if such act is done while such article is held for sale and such act results in such article being misbranded.

(9) Forging; counterfeiting; simulating; falsely repre­senting; or, without proper authority, using any mark, stamp, tag , label , or other identification device author­ized or required by rules promulgated under the provi­sions of ss. 499.001-499.081.

(1 0) The use, on the labeling of any drug or in any ad­vertisement relating to such drug, of any representation or suggestion that an application of the drug is effective when it is not or that such drug complies with the provi­sions of ss. 499.001-499.081 when it does not.

(11) The possession of a habit-forming, toxic, harm­ful, or new drug in violation of ss. 499.001-499.081.

(12) The sale, delivery, holding, or offering for sale of any self-testing kits designed to tell persons their status concerning human immunodeficiency virus or acquired immune deficiency syndrome or related disorders or conditions.

History.-s. 34, ch. 82-225; s. 106, ch . 83-218; s. 1, ch. 83-265; s. 24, ch. 88-380. 'Note.-Repealed effective October 1, 1992, by s. 1, ch . 83-265, and scheduled

for review pursuant to s. 11 .61 in advance of that date.

1151

s. 499.0054 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 499.018

1499.0054 Advertising and labeling of drugs, de­vices, and cosmetics.-The following acts and the causing thereof are violations of the Florida Drug and Cosmetic Act:

(1) The dissemination of any false advertisement of any drug, device, or cosmetic. An advertisement is false if it is false or misleading in any particular.

(2) The distribution in commerce of any drug, de­vice, or cosmetic, if its labeling or advertising is in viola­tion of this chapter.

(3) The manufacturing , repackaging, packaging, selling, delivery, holding , or offering for sale of any drug, device, or cosmetic that is falsely advertised or labeled.

(4) The advertising of any drug, device, or cosmetic that is adulterated or misbranded.

(5) The receiving in commerce of any drug, device, or cosmetic that is falsely advertised or labeled or the delivering or proffering for delivery of any such drug, de­vice, or cosmetic .

(6) The advertising of any drug or device represent­ed to have any effect in any of the following conditions, disorders, diseases, or processes:

(a) Blood disorders. (b) Bone or joint diseases. (c) Kidney diseases or disorders. (d) Cancer. (e) Diabetes. (f) Gall bladder diseases or disorders. (g) Heart and vascular diseases. (h) High blood pressure. (i) Diseases or disorders of the ear or auditory appa-

ratus, including hearing loss or deafness. (j) Mental disease or mental retardation . (k) Paralysis. (I) Prostate gland disorders. (m) Conditions of the scalp affecting hair loss. (n) Baldness. (o) Endocrine disorders. (p) Sexual impotence. (q) Tumors. (r) Venereal diseases. (s) Varicose ulcers. (t) Breast enlargement. (u) Purifying blood . (v) Metabolic disorders. (w) Immune system disorders or conditions affecting

the immune system. (x) Extension of life expectancy. (y) Stress and tension. (z) Brain stimulation or performance. (aa) The body's natural defense mechanisms. (bb) Blood flow. (cc) Depression. (dd) Human immunodeficiency virus or acquired im­

mune deficiency syndrome or related disorders or condi­tions.

(7) The advertising of any legend drug in a publica­tion of general circulation, unless such advertisement clearly states that such drug can be dispensed only by the prescription of a licensed practitioner.

History.-ss. 1, 4, ch . 86-271; s. 5, ch. 88-172; s. 25, ch. 88-380. 'Note.-Expires October 1, 1992, pursuant to s. 4, ch. 86-271, and is scheduled

for review pursuant to s. 11 .61 .

1499.017 Applications for approval of generic drugs. (1) Generic drugs which are not involved in inter­

state commerce require state approval and permits for manufacturing , distribution , and sale.

(2) An applicant shall submit to the department for review by the technical panel an application with the product name; its label ; verification of its ingredients, ef­fectiveness , and safety; manufacturing and processing protocols; quality assurance protocols; and other infor­mation required by the department.

(3) An applicant shall submit documentation that an application was submitted to the Food and Drug Admin­istration of the United States Department of Health and Human Services which did not allow the application to become effective 180 days after submission of the appli­cation , the provisions of chapter 120 to the contrary not­withstanding. Such documentation shall include all ma­terial submitted to, and received from, the Food and Drug Administration, with evidence that all questions in­volving patent rights have been resolved, and shall in­clude a statement signed by the applicant giving per­mission to obtain all materials pertinent to this applica­tion from the Food and Drug Administration.

(4) Each generic drug manufacturer with a Florida address is required to obtain a permit from the depart­ment and to be inspected by authorized agents of the department under ss . 499.001-499.081.

History.-s. 34, ch . 82-225; s. 111 , ch . 83-218; s. 1, ch. 83-265; s. 4, ch. 88-159. 1Note.-A. Repealed effective October 1, 1992, by s. 1, ch . 83-265, and scheduled for

review pursuant to s. 11 .61 in advance of that date. B. As amended by s. 4, ch. 88-159. Section 14, ch. 88-159, provides that "sec·

lions 499.02, 499.021, and 499.022, Florida Statutes, are repealed effective October 1, 1998. Sections 499.017 , 499.018, 499.041 , and 499.067, Florida Statutes , shall be reviewed by the Legislature prior to that date pursuant to section 11 .61 , Florida Stat· utes, and sections 499.02, 499.021 , and 499.022, Florida Statutes, shall be reviewed by the Legislature prior to that date pursuant to section 11 .611, Florida Statutes."

1499.018 Applications for approval of investigation­al drugs.-

( 1) A person applying for use of an investigational drug which does not have a Notice of Claimed Investiga­tional Exemption for a New Drug on file with the federal Food and Drug Administration or which is not otherwise lawful in interstate commerce shall , in accordance with the provisions of ss. 499.001-499.081, submit in writing to the department for review by the technical panel the following , if applicable:

(a) The best available descriptive name of the drug, including to the extent known the chemical name and structure of any substance composing the drug, and a description of how the drug is to be used and adminis­tered .

(b) A full report , by the applicant, to justify the pro­posed use of the drug.

(c) A complete list of the components of the drug. (d) A complete statement of the quantitative compo­

sition of the drug, including reasonable variations that may be expected during its use.

(e) A description of the source and preparation of any substances used as components, including the name and address of each supplier or processor, other than the applicant, for each substance.

(f) A statement of the methods, facilities , and con­trols used for the manufacturing , processing, and pack­ing of the investigational drug in accordance with good

1152

s. 499.018 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 499.02

manufacturing practices as provided in rules promulgat­ed by the department.

(g) The specific nature of the investigation to be con­ducted , together with information to show the scope and detail of the planned clinical observations and the clinical laboratory tests to be made and reported .

(h) The proposed protocols for each investigator. (i) Written assurance that an institutional review

committee is responsible for initial and continuing re­view and approval of the proposed clinical study, if the phases of the clin ical study are conducted by a person affiliated with a state institution which agrees to assume responsibility for the study.

(j) A statement that: 1. The applicant will notify the department within 10

days of the initiation of the clinical study or studies, and within 10 days of the termination of the clinical study or studies, giving the reasons for such termination; and

2. Reports will be submitted at least annually on all studies.

(k) A statement that the applicant will notify each subcontractor if the investigation is discontinued.

(I) Complete justification of all charges to be made related to the clinical study or studies .

(m) A statement that the applicant assures that clini­cal studies in humans will not be initiated prior to 45 days after the date of receipt of the application by the department, the provisions of chapter 120 to the con­trary notwithstanding, and that such clinical studies will not be initiated if so requested by the department prior to the expiration of the 45 days.

(n) Documentation that the drug has been submit­ted to the Food and Drug Administration of the United States Department of Health and Human Services and that the Food and Drug Administration did not allow the application to become effective 180 days after submis­sion of the application , the provisions of chapter 120 to the contrary notwithstanding. Documentation must in­clude all material submitted to and received from the Food and Drug Administration.

(o) A report of the scientific training and experience considered appropriate by the applicant to qualify him­self or the subcontractor as a suitable expert to investi­gate the safety and use of the drug. The report shall in­clude the names and addresses of all subcontractors .

(p) A list of the names and a summary of the training and experience of each investigator and of the individual in charge of the use of the drug , and , along with the list, a statement from the applicant that he has obtained from each subcontractor a completed and signed form and a statement that the subcontractor is qualified by scientific training and experience as an appropriate ex­pert.

(q) An outline of any phase or phases of the planned investigations that will include clinical pharmacology. Data available shall show the method of determining hu­man toxicity, metabolism, absorption, elimination , and other pharmacological action; the preferred route of ad­ministration; and the potential safe dosage range.

(r) A statement covering all information available to the applicant derived from preclinical investigations and any clinical studies or experience with the drug, includ­ing adequate information about the investigations,

studies made on laboratory animals, and the basis on which the applicant has concluded that it is reasonably safe to initiate or continue clinical investigations with the drug.

(2) In addition to the requirements of subsection (1 ), if the drug has been marketed commercially or investi­gated outside the United States, complete information regarding any distribution or investigation shall be sub­mitted , along with a complete bibliography of any publi­cations about the drug , which information is to include all informational material , including the label and label­ing , which was supplied to each subcontractor to whom the applicant subcontracted the use of the drug. Such information shall include an accurate description of the prior investigations and experience and their results per­tinent to the safety and possible usefulness of the drug under the conditions of the investigation and shall in­clude a description of all hazards, contraindications, side effects, and precautions suggested by prior investi­gations and experience with the drug under investiga­tion and related drugs.

(3) A manufacturer who is licensed under ss. 499.01 and 499.011 who was licensed prior to July 1, 1984, un­der former s. 402.36 may continue to be licensed under this chapter and may have the product for which it was licensed under former s. 402.36 registered under this subsection , provided the manufacturer continues to meet the requirements imposed on it prior to July 1, 1984, through its agreement with the department and meets good manufacturing practices as established by rule . Protocols approved under formers . 402.36 may be continued , but other uses or protocols for use must be approved under paragraph (1 )(h) of this section and ad­ministrative rules promulgated thereunder .

History.-s. 34, ch. 82- 225; s. 11 2, ch. 83-218; s. 1, ch. 83-265; s. 4, ch. 84-115; s. 5, ch. 88-1 59.

1Note.-A. Repealed effective October 1, 1992, by s. 1, ch. 83-265, and scheduled for

review pursuant to s. 11 .61 in advance of that date. B. As amended by s. 5, ch. 88-159. Section 14, ch. 88-159, provides that "sec­

tions 499.02, 499.021 , and 499.022, Florida Statutes, are repealed effective October 1, 1998. Sections 499.017, 499.018, 499.041 , and 499.067, Florida Statutes, shall be reviewed by the Legislature prior to that date pursuant to section 11 .61 , Florida Stat­utes , and sections 499.02, 499.021, and 499.022, Florida Statutes, shall be reviewed by the Legislature prior to that date pursuant to section 11.611 , Florida Statutes.'

1499.02 Florida Drug and Cosmetic Technical Re­view Panel; purpose; membership; meetings; records; expenses.-

(1) The Florida Drug and Cosmetic Technical Re­view Panel , hereinafter referred to as the "technical pan­el ," is established within the department and shall con­sist of five members appointed by the Secretary of Health and Rehabilitative Services. The technical panel shall provide assistance to the department and make recommendations on applications for drugs, devices, and cosmetics not involved in interstate commerce.

(2) Members of the technical panel shall be qualified by scientific training and experience and shall be resi­dents of this state. The technical panel shall consist of:

(a) At least one practitioner licensed under chapter 465.

(b) At least one practitioner licensed under chapter 458 or chapter 459.

1153

s. 499.02 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 499.041

(c) At least two pharmacologists. (d) At least one practitioner with clinical testing ex­

perience who is licensed under chapter 458. (3) _A vacancy in membership occurring before the

exp1rat1on of a term shall be filled by a member appoint­ed by the Secretary of Health and Rehabilitative Ser­vices for the remainder of that term.

(4) As the terms of members naturally expire, the Secretary of Health and Rehabilitative Services shall ap­point successors for terms of 4 years each. Members of the technical panel may be reappointed .

(5)(a) The technical panel shall select a chairman from its membership. The technical panel shall meet at the request of the department or shall respond in writing to a request by the department for technical assistance or for review of an application. In performing its responsi­bilities the panel shall use accepted rules of procedure.

(b) A designee of the department shall serve as re­cording secretary of the technical panel. The recording secr~tary shall keep a complete record documenting the act1v1t1es of the technical panel. The record shall show the names of members present at each meeting or in­clude the response of each panel member if responding 1n wnt1ng and shall document the discussions of the panel members, their recommendations, and actions taken. The recording secretary shall keep the records on f1le and shall make the records available to any interest­ed person.

(6) Members of the technical panel shall serve with­out compensation but shall be entitled to receive reim­bursement for per diem and travel expenses as provided ins. 112.061 .

14~~~~-0~~15"9" · 34, 40, ch. 82-225; s. 113, ch. 83-218; s. 2. ch . 83-265; ss. 6, 13,

'Note.-Repealed effective October 1, 1998, by s. 14, ch. 88-159, and scheduled for rev1ew pursuant to s. 11 .611 .

1499.021 Authority and duties of the technical pan­el.-The technical panel shall have the authority to make recommendations to the department on applica­tions submitted pursuant to s. 499.016, s. 499.017, or s. 499.018 and on applications for devices and cosmetics not involved in interstate commerce. The duties of the technical_ panel include, but are not limited to, reviewing and mak1ng recommendations relating to:

( 1) The need for or use of consulting contracts for scientific evaluation or analysis of a drug , device, or cos­metiC for wh1ch an application has been submitted .

(2) The need for or use of consulting contracts for evaluations on the continuance, revision , or termination of investigational drug product permits and for monitor­ing a drug , device, or cosmetic for which an application has been submitted.

(3) The need for and use of consulting contracts for preparation of executive summaries of applications for approval of drugs, devices, and cosmetics.

(4) The use and approval of laboratory facilities to analyze drugs, devices, and cosmetics.

(5) The establishment of label and labeling require­ments for drugs, devices, and cosmetics.

(6) The information required for applications and registrations of drugs, devices, and cosmetics.

(7) The approval or denial of drug, device, and cos­metic applications.

(8) Matters referred to it by the department.

88~~~1f.ry.-s. 34, ch. 82-225; s. 2, ch. 83-265; s. 87, ch . 85-81 ; ss. 7, 13, 14, ch .

1Note.-Repealed effective October 1, 1998, by s. 14, ch. 88-159, and scheduled for rev1ew pursuant to s. 11 .611.

1499.022 Technical review; approvals and denials. (1) The technical panel shall review each drug appli­

cation and , based on the information provided by the ap­plicant under s. 499.017 or s. 499.Q18, shall recommend approval or denial to the Secretary of Health and Reha­bilitative Services. . (2) An application for the manufacture, use, distribu­

tion, or repackaging of investigational drug products or genenc drugs shall become effective 120 days after the f1hng for appl1cat1on . with the department for review by the techn1cal panel, 1f the panel has not made its recom­mendation for approval or denial to the secretary. After due not1ce to the applicant and the opportunity for ad­m1n1strat1ve hearing in accordance with the provisions of chapter 120, the department may issue an order refus­inQ to permit the application to become effective.

Hostory.-s. 34, ch. 82- 225; s. 1, ch. 83-265; s. 6, ch . 87-50· ss 8 13 14 ch 88-159. ' . ' ' ' .

'Note.-Repealed effective October 1, 1998, by s. 14, ch. 88-159, and scheduled for rev1ew pursuant to s. 11 .611 .

499.024 Drug product classification.-The secre­tary is authorized to promulgate rules to classify drug products Intended for use by man which the U.S. Food and Drug Administration has not classified in the federal act or the Code of Federal Regulations .

(1) The Florida Drug and Cosmetic Technical Re­view Panel may review and make recommendations on products .

(2) . Drug products shall be classified as proprietary, prescnpt1on, or Investigational drugs. . (3) Any product distributed without required label­Ing shall be deemed to be an act which results in the drug product being misbranded while held for sale.

(4) Any product which falls under the drug definition, s. 499.003(8), may be classified under the authority of this section . Nothing in this section shall be construed to subject portable emergency oxygen inhalators to classification; however, this section does not exempt any person from the provisions of ss . 499.011 and 499.015.

(5) Any product classified under the authority of this sect1on shall revert to the federal classification, if differ­ent , upon the federal regulation or act becoming effec­tive.

(6) The department may by rule reclassify drugs subject to th1s sect1on when such classification action is necessary for the protection of the public health. . (7) The department may promulgate rules exempt­Ing from any label1ng or packaging requirements of this chapter drugs classified under this section if such re­quirements are not necessary for the protection of pub­lic health.

Hiatory.-s. 9, ch. 88-159.

. 1499.041 Schedule of registration fees for specified mtrastate drug application filings; trust fund.-

(1) The department shall assess the applicant for each separate and distinct new product according to the following schedule:

1154

s. 499.041 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 501.012

(a) For a cosmetic product, a filing fee of not less than $100 or more than $110.

(b) For a proprietary drug, a filing fee of not less than $100 or more than $110.

(c) For a generic drug product, a filing fee of not less than $500 or more than $550.

(d) For an investigational drug product, a filing fee of not less than $1 ,000 or more than $1,100.

(2) The department shall assess other such fees as provided in ss. 499.001-499.081.

(3) The department shall assess the individual appli­cants the fees for consulting contracts provided for in s. 499.021. The consulting contracts shall be completed by contractors approved by the department. In award­ing consulting contracts, preference shall be given to the universities in the state and government laboratory resources, which shall be contracted with when appro­priate.

(4) Consulting contract fees shall be set by the actu­al cost submitted by the contractor for each product ap­plication. All fees paid to the department, as herein pro­vided, shall be placed in the Florida Drug, Device, and Cosmetic Trust Fund and utilized by the department for administration of ss. 499.001-499.081 .

History.-s. 34, ch. 82-225; s. 116, ch. 83-218; s. 1, ch. 83-265; s. 10, ch. 88-159. 1Note.-A. Repealed effective October 1, 1992, by s. 1, ch. 83-265, and scheduled for

review pursuant to s. 11.61 in advance of that date. B. Section 14, ch . 88-159, provides that "sections 499.02, 499.021 , and 499.022,

Florida Statutes, are repealed effective October 1, 1998. Sections 499.017 , 499.018, 499.041 , and 499.067, Florida Statutes, shall be reviewed by the Legislature prior to that date pursuant to section 11 .61, Florida Statutes, and sections 499.02, 499.021, and 499.022, Florida Statutes, shall be reviewed by the Legislature prior to that date pursuant to section 11 .611 , Florida Statutes."

1499.051 Inspections and investigations.-( 1) The agents of the department and of the Depart­

ment of Law Enforcement shall have the authority to in­spect, monitor, and investigate all drug and cosmetic wholesalers; drug repackagers; investigational drug pro­grams; and drug, device, or cosmetic manufacturers during business hours for the purpose of enforcing the provisions of ss. 499.001-499.79, chapters 893 and 465, and the rules of the department which relate to the pro­tection of the health, safety, and welfare of the public.

(2) In addition to the authority set forth in subsection (1 ), the department and any duly designated officer or employee thereof shall have the right to enter upon and inspect any other facility for the purpose of determining compliance with the provisions of this chapter and rules promulgated thereunder regarding a drug, device, or cosmetic product. The authority to enter and inspect herein contained shall not extend to the practice of the profession of pharmacy, as defined in chapter 465 and the rules promulgated thereunder, in a pharmacy per­mitted under chapter 465.

(3) Any application for a facility or product and re­newal thereof made pursuant to this chapter and rules promulgated thereunder shall constitute permission for any entry or inspection of the premises in order to facili­tate verification of compliance with this chapter and rule requirements ; to discover, investigate, and determine the existence of compliance; or to elicit, receive, re­spond to, and resolve complaints and violations.

Hlstory.-s. 34, ch. 82-225; s. 26, ch. 82-402; s. 1, ch. 83-265; s. 5, ch. 86-133; s. 11, ch. 88-159.

•Note.-Expires October 1, 1992, pursuant to s. 26, ch . 82-402, and is scheduled

for review pursuant to s. 11 .61 in advance of that date. Repealed effective October 1, 1992, by s. 1, ch. 83-265, and scheduled for review pursuant to s. 11 .61 in advance of that date.

1499.067 Denial or revocation of permit.-The de­partment is authorized to deny, suspend, or revoke a permit in any case in which it finds that there has been a substantial failure to comply with the provisions of ss. 499.001-499.79, the rules promulgated under such sec­tions, or the procedures and protocols established for any investigational drug product by the department.

Hlstory.-s. 34, ch . 82-225; s. 1, ch. 83-265; s. 8, ch. 86-133; s. 12, ch. 88-159. •Note.-A. Repealed effective October 1, 1992, by s. 1, ch. 83-265, and scheduled for

review pursuant to s. 11.61 in advance of that date. B. As amended by s. 12, ch. 88-159. Section 14, ch. 88-159, provides that "sec·

tions 499.02, 499.021, and 499.022, Florida Statutes, are repealed effective October 1, 1998. Sections 499.017 , 499.018, 499.041 , and 499.067, Florida Statutes, shall be reviewed by the Legislature prior to that date pursuant to section 11.61, Florida Stat· utes, and sections 499.02, 499.021 , and 499.022, Florida Statutes, shall be reviewed by the Legislature prior to that date pursuant to section 11 .611 , Florida Statutes."

501.012 501.1375

CHAPTER 501

CONSUMER PROTECTION

PART I

GENERAL PROVISIONS

Contracts for health studio services. Deposits received for purchase of residential

dwelling units; placement in escrow re­quired; exceptions.

501.012 Contracts for health studio services.­(1) The Legislature finds and declares that there ex­

ist in connection with a substantial number of contracts for health studio services certain practices and business and financing methods which have worked undue finan­cial hardship upon some of the citizens of our state and that existing legal remedies are inadequate to correct existing problems in the industry. The Legislature finds and declares that the health studio industry has a signifi­cant impact upon the economy and well-being of the people of the state and that the provisions of this section regulating health studio contracts are necessary for the public welfare.

(2) For purposes of this section, the following terms shall have the following meanings, unless the context re­quires otherwise:

(a) "Health studio" means any person who is en­gaged in the sale of future services for instruction, train­ing, or assistance in a program of physical exercise or in the sale of future services for the right or privilege to use equipment or facilities in furtherance of a program of physical exercise. The following businesses or activi­ties are exempt from the provisions of this section:

1. A bona fide nonprofit organization which has been granted tax-exempt status by the Internal Reve­nue Service.

2. A gymnastics school which engages only in in­struction and training and in which exercise is only inci­dental to such instruction and training .

3. A golf, tennis, or racquetball club in which sports play is the only activity offered by the club. If the facility

1155

s. 501.012 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 501.012

offers the use of physical exercise equipment, this ex­emption shall not apply.

4. A program or facility which is offered and used solely for the purpose of dance, aerobic exercise, or mar­tial arts, and which utilizes no physical exercise equip­ment.

5. A business, otherwise defined as a health studio, which sells a single contract of 30 days or less to any member without any option for renewal or any other con­dition which establishes any right in the member beyond the term of such contract. This exemption shall not ap­ply if the business offers any other health studio contract of whatever duration at any time during, or prior to, the existence of such single contract of 30 days or less.

(b) "Health studio services" means services, privi­leges, or rights offered for sale or provided by a health studio.

(c) "Department" means the Department of Agricul­ture and Consumer Services.

(3) Every contract for the sale of future health studio services which are paid for in advance or which the buy­er agrees to pay for in future installment payments shall be in writing and shall contain , contractual provisions to the contrary notwithstanding , the following :

(a) A provision for the penalty-free cancellation of the contract within 3 days , exclusive of holidays and weekends, of its making, upon the mailing or delivery of written notice to the health studio, and refund upon such notice of all moneys paid under the contract, except that the health studio may retain an amount computed by di­viding the number of complete days in the contract term or, if appropriate, the number of occasions health studio services are to be rendered into the total contract price and multiplying the result by the number of complete days that have passed since the making of the contract or, if appropriate, by the number of occasions that health studio services have been rendered .

(b)1. A contract entered into between a health stu­dio and a purchaser shall be subject to cancellation and refund if the original contracting health studio goes out of business, moves its facilities more than 5 driving miles from the location designated in such contract, or fails to provide, within 30 days, a facility of equal quality, at no additional cost to the purchaser.

2. Notice of intent to cancel by the purchaser shall be given in writing to the health studio. If the health stu­dio wishes to enforce such contract after receipt of such showing, it may request the department to determine the sufficiency of the showing.

3. If the department determines that a refund is due the purchaser, the refund shall be an amount computed by dividing the contract price by the number of weeks in the contract term and multiplying the result by the number of weeks remaining in the contract term. The health studio shall not be deemed out of business when temporarily closed for repair and renovation of the prem­ises:

a. Upon sale, for not more than 14 consecutive days; and

b. During ownership, for not more than 7 consecu-tive days and not more than two periods of 7 consecu­tive days in any calendar year.

\

(c) A provision for the cancellation of the contract if the buyer dies or becomes physically unable to avail himself of a substantial portion of those services which he used from the commencement of the contract until the time of disability, with refund of funds paid or ac­cepted in payment of the contract in an amount comput­ed by dividing the contract price by the number of weeks in the contract term and multiplying the result by the number of weeks remaining in the contract term. The contract may require a buyer or the buyer's estate seek­ing relief under this subsection to provide proof of dis­ability or death . A physical disability sufficient to warrant cancellation of the contract by the buyer shall be estab­lished if the buyer furnishes to the health studio a certifi­cation of such disability by a physician licensed under chapter 458 or chapter 459.

(d) A provision that the initial contract will not be for a period in excess of 36 months, and thereafter shall only be renewable annually. Such renewal contracts may not be executed and the fee therefor paid until 60 days or less before the preceding contract expires.

(e) A provision that if the health studio requires a buyer to furnish identification upon entry to the facility and as a condition of using the services of the health stu­dio, the health studio shall provide the buyer with the means of such identification .

(4) Upon entering into a contract for health studio services, the buyer shall be provided with a written con­tract , which shall include the name, address, and prima­ry place of business of the health studio. Prior to enter­ing into any such contract, the health studio shall also provide the buyer with a current copy of any rules and regulations applicable to the buyer's use of the health studio.

(5) The provisions of this section do not apply to any contracts for health studio services entered into before the effective date of this act, or to the subsequent re­newals of such contracts .

(6) Every health studio, except those having been in business for more than 3 years as of October 1 , 1988, which sells contracts for health studio services shall dur­ing any period before opening and continuously thereaf­ter:

(a) Maintain for each separate business location a bond issued by a surety company admitted to do busi­ness in this state. The principal sum of the bond shall be $50,000, and the bond, when required , shall be ob­tained before an occupational license may be issued un­der chapter 205. Upon issuance of an occupational li ­cense, the licensing authority shall immediately notify the department of such issuance in a manner estab­lished by the department by rule . The bond shall be in favor of the state for the benefit of any person injured as a result of a violation of this section. The aggregate liability of the surety to all persons for all breaches of the conditions of the bonds provided herein shall in no event exceed the amount of the bond . The original surety bond required by this section shall be filed with the depart­ment.

(b) In lieu of maintaining the bond required in para­graph (a) , the health studio may furnish to the depart­ment:

1156

s. 501.012 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 501.1375

1. A letter of credit from any foreign or domestic bank in the amount of $50,000; or

2. A guaranty agreement which is secured by a cer-tificate of deposit in the amount of $50,000. The original letter of credit or certificate of deposit submitted in lieu of the bond shall be filed with the department. The de­partment shall decide whether the security furnished in lieu of bond by the health studio is in compliance with the requirements of this section.

(c)1. A health studio which sells contracts for future health studio services may elect to collect direct pay­ment on a monthly basis for those services in lieu of maintaining the bond required in paragraph (a) .

2. The contract shall conform to all the require-ments for future health studio services ' contracts as specified in this section and shall specify in the terms of the contract the monthly charges to be assessed for those health studio services.

(d) Pay a filing fee of $100 for each location to the department upon filing of a surety bond or other security furnished in lieu thereof, as required by this section.

(e) If the health studio furnishes the department with evidence satisfactory to the department that the aggre­gate dollar amount of all current outstanding contracts of the health studio is less than $5,000, the department may, in its discretion , reduce the principal amount of the surety bond or other sufficient financial responsibility re­quired in paragraphs (a) and (b) to a sum not less than $10,000; however, at any time the aggregate dollar amount of such contracts exceeds $5,000, the health studio shall · so notify the department and shall there­upon provide the bond or other documentation as re­quired in paragraphs (a) and (b).

(f)1. Furnish the department with a copy of the es­crow account which would contain all funds received for future consumer services, whether by contract or other­wise, sold prior to the physical facility 's full operation.

2. Specify a date certain for opening, if such an es-crow account is e~tablished.

(g) Register with the Division of Consumer Services of the Department of Agriculture and Consumer Ser­vices in a form and manner as required by the depart­ment which registration shall be updated annually.

(?)(a) Whenever the ownership of a health studio is changed or, in the case of corporate ownership, when­ever the stock ownership is changed so as to effectively put the health studio under new management or control , the new owner or manager within 10 days of such change shall provide each buyer then under contract with the studio with notice of the rights and obligations of the buyer and the health studio affected by such change.

(b) Whenever the majority ownership of a health stu­dio is changed pursuant to paragraph (a) or whenever a health studio moves its facilities or closes its facilities it shall notify the Division of Consumer Services by certi­fied mail at least 30 days in advance of any such change of majority ownership, move, or closure of facilities and shall post a notice of such change at the front entrance of the health studio.

(8) No health studio may, orally or in writing, make any representation that a health studio contract for fu­ture services is for a lifetime or is a perpetual member-

ship or use any words or combination of words which may tend to give a prospective buyer the impression that a contract or membership entitles the buyer to ser­vices or the use of facilities for an indefinite term.

(9) Any health studio or any owner or manager there­of, or, in the case of corporate ownership, any substan­tial stockholder of the corporation owning the health stu­dio, who violates the provisions of this section is guilty of a misdemeanor of the first degree, punishable as pro­vided in s. 775.082, s. 775.083, or 1s. 775.084.

(1 O)(a) The department may institute proceedings in the appropriate circuit court for injunctive relief to en­force this act.

(b) The Division of Consumer Services may, at any time during business hours, enter any health studio re­quired to be registered pursuant to this section, exam­ine the books or records of the health studio, and sub­poena all necessary records when the division has rea­son to believe a violation of the provisions of this section has occurred.

(11) The department shall promulgate such rules as may be necessary to carry out the provisions of this sec­tion.

(12)(a) The amendments to this section by chapter 78-419, Laws of Florida, do not apply to any contracts for health studio services entered into before July 1, 1978, or to subsequent renewals of such contracts.

(b) The amendments to this section by chapter 80-49, Laws of Florida, and by chapter 85-275, Laws of Flor­ida, do not apply to a health studio which has operated at the same location under the same ownership since July 1, 1977.

(13) All fees imposed pursuant to this section shall be deposited in the General Inspection Trust Fund as creat­ed in s. 570.20.

History.-s. 1, ch. 77-432; ss. 1, 2, ch . 78-419; s. 1, ch. 80-49; s. 1, ch. 83-236; s. 1, ch. 85-4; s. 1, ch. 85-275; s. 62, ch. 87-225; s. 1, ch. 88-267.

1Note.-Section 775.084 was amended by s. 6, ch. 88-131 , deleting all reference to misdemeanors.

501.1375 Deposits received for purchase of resi­dential dwelling units; placement in escrow required; exceptions.-

(1) DEFINITIONS.-(a) "Building contractor" means any person who, for

compensation, constructs and sells one-family or two­family residential dwelling units, except for a person who sells or constructs less than 10 units per year statewide.

(b) "Developer" means either a building contractor who offers new residential dwelling units for sale or any person who offers a new one-family or two-family resi­dential dwelling unit for sale, except for a person who sells or constructs less than 10 units per year statewide.

(c) "Closing" means that point in time at which legal title to the real property shall transfer from grantor there­of to grantee.

(d) "Default" means the failure of the buyer to close the transaction after issuance of the certificate of occu­pancy or the failure of the buyer to comply with any of the buyer's obligations under the terms of the purchase contract.

(e) "Escrow" or "to place in escrow" means the deliv­ery to or deposit with a third party, the escrow holder, of money or documents to be held and disbursed by

1157

s. 501.1375 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 501.1375

such escrow agent consistent with the provisions of this section .

(2) NOTICE TO BUYER OF RIGHT TO HAVE DE­POSIT PLACED IN ESCROW ACCOUNT.-In all offers to purchase, sales agreements, or written contracts made between a building contractor or a developer and a prospective buyer of a one-family or two-family resi­dential dwelling unit, the building contractor or develop­er shall notify the prospective buyer that any deposit (up to 10 percent of the purchase price) made by the buyer to the building contractor or developer shall , unless waived in writing by the buyer, be deposited in an es­crow account with a savings and loan association, bank, or trust company, an attorney who is a member of The Florida Bar, a licensed Florida real estate broker, or a ti­tle insurance company authorized to insure title to real property in this state. The escrowed funds may be de­posited in separate accounts or commingled with other escrow or trust accounts . Any such offer, agreement, or contract used by the building contractor or developer with respect to the sale of a one-family or two-family residential dwelling unit shall contain the following leg­end in conspicuous type: THE BUYER OF A ONE­FAMILY OR TWO-FAMILY RESIDENTIAL DWELLING UNIT HAS THE RIGHT TO HAVE ALL DEPOSIT FUNDS (UP TO 10 PERCENT OF THE PURCHASE PRICE) DE­POSITED IN AN INTEREST -BEARING ESCROW AC­COUNT. THIS RIGHT MAY BE WAIVED, IN WRITING , BY THE BUYER.

(3) ESCROW ACCOUNTS; INTEREST RATE; WITH­DRAWALS.-In the event that the buyer of a one-family or two-family residential dwelling unit does not waive his right to have deposits placed in an escrow account , the building contractor or developer shall place the funds (up to 10 percent of the purchase price) in an escrow ac­count bearing interest at no less than the passbook rate of interest. The account shall be in the name of the build­ing contractor or developer and the purchaser and shall be clearly denoted on the records of the escrow holder as an escrow account. All withdrawals from the account shall require the signatures of both the building contrac­tor or developer and the buyer or his agent, except as provided herein .

(4) RIGHT TO INTEREST; USE OF ESCROWED FUNDS; SURETY BOND.-When money has been placed in an interest-bearing escrow account pursuant to this section , the building contractor or developer shall be entitled to all interest accrued by the account, pay­able at closing . When the building contractor or develop­er desires to use escrowed funds for building purposes, after notification to the buyer, the building contractor or developer shall acquire a surety bond issued by a com­pany licensed to do business in this state, if such a bond is readily available in the open market, payable to the buyer in the amount of the escrow deposit; and the funds in the escrow deposit shall thereafter be released to the building contractor or developer for construction purposes only. In the case where no surety bond is avail­able, the building contractor or developer may borrow money in an amount equal to the funds held in escrow for construction purposes only , in which case any inter­est which the building contractor or developer pays on such a loan for a period not to exceed 12 months shall

be paid by the buyer at the time of closing, but the buyer shall be credited for any interest accrued on the escrow account.

(5) MASTER SURETY BOND.-In lieu of and as an alternative to the requirements of subsection (4), a blan­ket or master surety bond issued by a company licensed to do business in this state may be acquired by the builder or developer, in an amount equal to or greater than the total amount of escrow deposits received by the builder or developer pursuant to this section. The buyer shall be debited at closing in an amount equal to the premium for the applicable portion of the bond se­curing his deposit. Bond rates charged under this sub­section shall be subject to the provisions of part I of chapter 627 of the Florida Insurance Code.

(6) ACCOUNT ABILITY OF ESCROW HOLDER FOR USE OF ESCROWED FUNDS.-No escrow holder, bonding company, or lending institution referred to in this section shall be chargeable with the use to which a builder or developer puts escrowed funds.

(7) RELEASE OF DEPOSIT MONEYS.-Funds in an interest-bearing escrow account shall be released with­out the signature of both the building contractor or de­veloper and the buyer only under the following condi­tions:

(a) Pursuant to subsection (4) . (b) Pursuant to subsection (5). (c) If the buyer properly terminates the contract pur­

suant to its terms, the funds, including accrued interest, shall be paid to the buyer.

(d) If the buyer defaults in the performance of his ob­ligations under the contract of purchase and sale, the funds shall be paid to the building contractor or develop­er together with any interest earned, in the following manner: The builder or developer may, upon default of the buyer to comply with the terms and conditions of the written contract between the parties, and if the builder or developer is not in default, withdraw any funds being held in escrow pursuant to said written agreement. In or­der to make such withdrawal , the builder or developer shall send written notice by certified mail to the buyer of his intention to make said withdrawals at least 72 hours prior to the intended time of withdrawal. After this 72-hour period , the builder or developer, upon presenta­tion to the escrow holder of a withdrawal slip and the passbook, if any, together with an affidavit certifying that the buyer is in default and that the builder or devel­oper is not in default, may withdraw the escrowed funds. The escrow holder, upon receipt of these items, shall re­lease the funds to the builder or developer. The escrow holder shall not be liable for the release of the funds pur­suant to this subsection.

(e) If the funds of the buyer have not been previously disbursed in accordance with this subsection, they shall be disbursed to the building contractor or developer at the closing of the transaction .

(8) NO RIGHT OF LIEN, SUBROGATION, OR CLAIM. (a) An escrow deposit or surety bond purchased

pursuant to this section shall not be subject to any me­chanic 's lien or lien of any lending institution (except if contracted for by the buyer) or subrogation in the case of default.

1158

s. 501.1375 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 509.013

(b) In the event that closing occurs with respect to a sale under this section , the buyer shall then have no right to place a claim on any escrowed funds for breach of contract.

(9) PENAL TIES.-Any developer who willfully fails to comply with the provisions of this section concerning es­tablishment of an escrow account, deposits of funds into escrow, or withdrawal of funds from escrow is guilty of a felony of the third degree, punishable as provided ins. 775.082, s. 775.083, or s. 775.084. The failure toes­tablish an escrow account or to place funds in an escrow account within 1 0 days after receipt by the developer of such funds is prima facie evidence of an intentional and purposeful violation of this section .

(10) CIVIL ACTIONS.-In the event of any civil litiga­tion arising under this section, the prevailing party shall be entitled to attorney's fees and costs. Escrow account interest shall continue to accrue to the benefit of the building contractor or developer on said escrow account during the pendency of any such litigation, except in the event of a ruling adverse to the building contractor or de­veloper.

(11) STATE STANDARDS.-The provisions of this section constitute maximum statewide standards.

(12) EXEMPTIONS.- This section shall not apply to those deposits, as defined herein, which are placed in an escrow account required by the Federal Housing Ad­ministration or the Veterans Administration, and those deposits made to licensed real estate brokers pursuant to this section shall be deposited in accordance with the provisions of chapter 475.

History.-ss. 1, 2, 3, 4, 5, 6, 7, ch. 80-386; s. 385, ch. 81 -259; s. 1, ch. 88-251. cf.- s. 718.202 Sales or reservation deposits prior to closing.

509.013 509.214 509.215 509.501 509.502 509.503 509.504 509.505 509.506 509.507 509.508 509.509 509.510

509.511

CHAPTER 509

PUBLIC LODGING AND PUBLIC FOOD SERVICE ESTABLISHMENTS

Definitions. Notification of automatic gratuity charge. Firesafety. Short title. Definitions. Membership camping contracts. Cancellation. Required disclosures. Trust accounts. Advertising; disclosures; unlawful acts. Prize and gift promotional offers. Purchasers ' remedies. Violation of trust account provisions; misde­

meanor. Violation ; Deceptive and Unfair Trade Prac­

tices Act.

1509.013 Definitions.-As used in this chapter: (1) "Division" means the Division of Hotels and Res­

taurants of the Department of Business Regulation. (2) "Operator" means the owner, operator, keeper,

proprietor, lessee, manager, assistant manager, desk

clerk , agent, or employee of a public lodging establish­ment or public food service establishment.

(3) "Guest" means any guest, tenant , lodger, board­er, or occupant of a public lodging establishment or pub­lic food service establishment.

(4)(a) "Public lodging establishment" means any unit, dwelling, building, or group of buildings within a sin­gle complex of buildings, which is kept , used, main­tained, or advertised as, or held out to the public to be, a place where sleeping or housekeeping accommoda­tions are supplied for pay to transient or permanent guests or tenants.

(b) The following are excluded from the definition in paragraph (a) :

1. Any individually or collectively owned one-family, two-family , three-family, or four-family dwelling house or dwelling unit , regardless of the number of such dwelling houses or units clustered together, unless it is regularly rented to transients or held out or advertised to the public as a place regularly rented to transients;

2. Any dormitory or other living or sleeping facility maintained by a public or private school, college, or uni­versity primarily for the use of students, faculty, or visi­tors ;

3. Any hospital, nursing home, sanitarium, adult congregate living facility , or other similar place;

4. Any place renting three rental units or less, un-less the rental units are advertised or held out to the public to be places that are regularly rented to tran­sients; and

5. Any building or group of buildings containing more than one unit, in a condominium or cooperative, unless the units are available for rent for periods of less than 30 days or the building or group of buildings are held out or advertised to the public as places regularly rented to transients for periods of less than 30 days.

(5)(a.) "Public food service establishment" means any building , vehicle, place, or structure, or any room or division in a building , vehicle, place, or structure, that is maintained and operated as a place where food is regu­larly prepared , served, or sold for immediate consump­tion on or in the vicinity of the premises; to be called for or taken out by customers; or to be delivered to facto­ries , construction camps, airlines, and other similar loca­tions for consumption at any place. "Public food service establishment" includes any public location with vend­ing machines dispensing prepared meals.

2(b) The following are excluded from the definition in paragraph (a) :

1. Any place maintained and operated by a public or private school, college, or university either:

a. Primarily for the use of students and faculty; or b. Temporarily to serve such events as fairs, carni­

vals , and athletic contests. 2. Any eating place maintained and operated by a

church or a religious, fraternal , or nonprofit civic organi­zation , either:

a. Primarily for the use of members and associates; or

b. Temporarily to serve such events as fairs, carni­vals, or athletic contests.

3. Any eating place located on an airplane, train, bus, or watercraft which is a common carrier.

1159

s. 509.013 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 509.215

4. Any eating place maintained by a hospital, nurs­ing home, sanitarium, adult congregate living facility, adult day care center, or other similar place.

5. Any theater, if the primary use is as a theater and if patron service is limited to food items customarily served to the admittees of theaters.

6. Any retail grocery store in which food is prepared for consumption off the premises, which food is sold as part of the retail grocery operation .

(6) "Director" means the Director of the Division of Hotels and Restaurants of the Department of Business Regulation.

(7) "Single complex of buildings" means all buildings or structures which are owned, managed, controlled, and operated under one business name, have a com­mon street address, and are situated on the same tract or plot of land which is not separated by a public street or highway.

(8) "Transient occupancy" means occupancy when it is the intention of the parties that the occupancy will be temporary. There is a rebuttable presumption that , when the dwelling unit occupied is the sole residence of the guest, the occupancy is nontransient. There is a rebuttable presumption that, when the dwelling unit oc­cupied is not the sole residence of the guest, the occu­pancy is transient.

(9) "Transient" means a guest in transient occupan­cy.

(10) "Operator," in a condominium or cooperative, means the owner of the unit or such association or other agent appointed by the unit owner as operator for the purposes of this chapter.

Hlstory.-s. 1, ch. 73-325; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 1, 39, 42, ch. 79-240; ss. 3, 4, ch. 81-161 ; ss. 2, 3, ch. 81-318; s. 2, ch. 83-241; s. 3, ch. 87-117; s. 31, ch. 68-90; s. 2, ch. 68-275.

1Note.-Repealed effective October 1, 1990, by s. 4, ch. 81-161 , and by s. 2, ch. 81-318, and scheduled for review pursuant to s. 11.61 in advance of that date.

2Note.-Section 2, ch. 68-275, purported to amend entire paragraph (5)(b), by de· leting subparagraph 6., but did not set out in full the amended paragraph to include subparagraphs 1. through 5. Because the omission appears to have occurred through inadvertence rather than an intent to repeal , paragraph (5)(b), as amended effective July 1, 1989, is set out in full here to read :

(b) The following are excluded from the definition in paragraph (a): 1. Any place maintained and operated by a public or private school, college, or

university either: a. Primarily for the use of students and faculty ; or b. Temporarily to serve such events as fairs, carnivals, and athletic contests . 2. Any eating place maintained and operated by a church or a religious, frater·

nal , or nonprofit civic organization, either: a. Primarily for the use of members and associates; or b. Temporarily to serve such events as fairs, carnivals, or athletic contests. 3. Any eating place located on an airplane, train, bus, or watercraft which is a

common carrier. 4. Any eating place maintained by a hospital , nursing home, sanitarium, adult

congregate living facility , adult day care center, or other similar place. 5. Any theater, if the primary use is as a theater and if patron service is limited

to food items customarily served to the admittees of theaters.

509.214 Notification of automatic gratuity charge. Every public food service establishment which includes an automatic gratuity charge in the price of the meal shall include on the face of the bill provided to the cus­tomer notice that an automatic gratuity is included.

History.-s. 1, ch. 86-24; s. 1, ch. 88-16.

'509.215 Firesafety.­(1) Any: (a) Public lodging establishment, as defined in this

chapter, or any facility or accommodation of a time­share plan, as defined in chapters 718 and 721, which is of three stories or more and for which the construction

contract has been let after September 30, 1983, with in­terior corridors which do not have direct access from the guest area to exterior means of egress, or

(b) Building over 75 feet in height that has direct ac­cess from the guest area to exterior means of egress and for which the construction contract has been let af­ter September 30, 1983,

shall be equipped with an automatic sprinkler system in­stalled in compliance with the provisions prescribed in the National Fire Protection Association publication NFPA No. 13 (1985), "Standards for the Installation of Sprinkler Systems." The sprinkler installation may be omitted in closets which are not over 24 square feet in area and in bathrooms which are not over 55 square feet in area, which closets and bathrooms are located in guest rooms or time-share units. Each guest room and each time-share unit shall be equipped with an ap­proved listed single-station smoke detector meeting the minimum requirements of NFPA-74 (1984) "Standards for the Installation, Maintenance and Use of Household Fire Warning Equipment," powered from the building electrical service, notwithstanding the number of stories in the structure, if the contract for construction is let af­ter September 30, 1983. Single-station smoke detection shall not be required when guest rooms or time-share units contain smoke detectors connected to a central alarm system which also alarms locally.

(2) Any public lodging establishment, as defined in this chapter, or any time-share unit of a time-share plan , as defined in chapters 718 and 721, which is of three sto­ries or more and for which the construction contract was let before October 1, 1983, shall be equipped with:

(a) A system which complies with subsection (1 ); or (b) An approved sprinkler system for all interior corri­

dors, public areas, storage rooms, closets , kitchen ar­eas, and laundry rooms, less individual guest rooms or time-share units, provided the following conditions are met:

1. There is a minimum 1-hour separation between each guest room or time-share unit and between each guest room or time-share unit and a corridor.

2. The building is constructed of noncombustible materials.

3. The egress conditions meet the requirements of s. 5-3 of the Life Safety Code, NFPA 101 (1985).

4. The building has a complete automatic fire de-tection system which meets the requirements of NFPA-72A (1987) and NFPA-72E (1984), including smoke de­tectors in each guest room or time-share unit individual­ly annunciating to a panel at a supervised location .

(3) The Division of State Fire Marshal may prescribe uniform standards for firesafety equipment for public lodging establishments and time-share units of time­share plans for which the construction contracts were let before October 1, 1983. An entire building shall be equipped as outlined not later than October 1, 1989, ex­cept that the approved sprinkler system may be delayed by the Division of State Fire Marshal until October 1, 1991, on a schedule for complete compliance in accord­ance with rules and regulations to be adopted by the Di­vision of State Fire Marshal, which schedule shall in­clude a provision for a 1-year extension which may be

1160

s. 509.215 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 509.502

granted not more than three times for any individual re­questing an extension. The entire system must be in­stalled and operational by October 1, 1994.

(4) The provisions for installation of single-station smoke detectors required in subsection (1) and sub­paragraph (2)(b)4. shall be waived by the Division of State Fire Marshal for any establishment for which the construction contract was let before October 1, 1983, and which is under three stories in height, provided each individual guest room or time-share unit is equipped with a smoke detector approved by the Division of State Fire Marshal and the schedule for compliance is not later than October 1, 1986.

(5) Notwithstanding any other provision of law to the contrary, this section applies only to those public lodg­ing establishments used primarily for transient occupan­cy as defined in s. 83.43(1 0) and the rental agreements of which are not regulated by the Florida Residential Landlord and Tenant Act.

2(6) Special exception to the provisions of this sec­tion shall be made for hotel structures that are on the Na­tional Register of Historic Places as determined by the United States Department of the Interior or that are of historical significance to this state as determined by the committee referred to in this subsection. For such struc­tures, provisions shall be made for a system of fire pro­tection and life safety support that would meet the intent of the NFPA standards and be acceptable to, and ap­proved by, a committee composed of the director of the Division of Hotels and Restaurants, the director of the Division of State Fire Marshal , and the chairman of the local historic preservation board . In an area without a lo­cal board, the chairman of the historic preservation proj­ect review council or his designee would be determined to have met the intent of this subsection.

(7) The Division of State Fire Marshal shall adopt, in accordance with the provisions of chapter 120, any rules and regulations necessary for the implementation and enforcement of this section. The Division of State Fire Marshal, in cooperation with the Division of Hotels and Restaurants and in accordance with the provisions of chapter 633, shall enforce the provisions of this section.

(8) Specialized smoke detectors for the deaf and hearing-impaired shall be available upon request by guests in public lodging establishments at a rate of at least one such smoke detector per 50 dwelling units or portions thereof, not to exceed five such smoke detec­tors per public lodging facility.

History.-ss. 1, 3, 4, ch. 83-194; s. 91 , ch . 85-81; s. 7, ch. 86-174; s. 32, ch. 88-90; s. 1, ch. 88-209.

1Note.-Expires October 1,1990, pursuant to s. 4, ch. 83-194, and is scheduled for review pursuant to s. 11 .61 in advance of that date.

2Note.-Expires October 1, 1990, pursuant to s. 3, ch . 83-194, and the committee described in subsection (6) is scheduled for review pursuant to s. 11 .611 . cf.-ch. 83, pt. II Florida Residential Landlord and Tenant Act.

509.501 Short title.- 1This act may be cited as the "Florida Membership Campground Act."

History.-s. 1, ch. 88-t57. 'Note.-The term "this act" refers to ch. 88-157, the compiled provisions of which

are found at ss. 509.501-509.511 .

509.502 Definitions.-As used in this act: (1) "Advertising" means any written, oral, printed, or

visual communication by an offeror made in connection with the promotion of a membership camping plan.

(2) "Business day" means a calendar day other than a Saturday, Sunday, or national holiday.

(3) "Campground" means any real property which is a part of a membership camping plan. This term does not include a mobile home or recreational vehicle park as defined in chapter 513 so long as no membership camping plan is offered for sale, sold, or otherwise pro­moted with regard to such park.

(4) "Camping site" means any portion of a camp­ground designed or promoted for the purpose of camp­ing , including any trailer , tent, tent trailer, pickup camp­er, cabin, or other similar device or accommodation used for camping and located upon such site.

(5) "Dues payment" means the mandatory annual or periodic fee paid by a purchaser, other than the pur­chase price, as set forth in the membership camping contract. This term does not include optional user fees charged for specific goods or services such as camp­ground recreation or rental fees, equipment or accom­modation rentals , or meals.

(6) "Facilities" means all amenities offered in connec­tion with a campground, including, but not limited to, camping sites, available rental trailers or cabins, if any, swimming pools, sport courts , recreation buildings, and trading posts or grocery stores.

(7) "Membership camping contract" means an agreement evidencing a purchaser's right to use camp­grounds and facilities pursuant to a membership camp­ing plan .

(8) "Membership camping plan" means any arrange­ment or other device, membership agreement, rental agreement, license, right-to-use agreement, or other agreement under which a purchaser, in exchange for consideration, receives the right to use campgrounds and facilities. This term does not include any arrange­ment or other device, membership agreement, rental agreement, license, right-to-use agreement, or other agreement under which a purchaser has the one-time right to use a specific, identified camping site and relat­ed facilities for a specific , identified , nonrecurring period of time.

(9) "Offer" means any solicitation , advertisement, in­ducement, or other method or attempt to encourage any person to become a purchaser.

(10) "Offeror" means the person who creates a mem­bership camping plan and offers membership camping contracts for sale to the public in the ordinary course of business in connection with the membership camping plan.

(11) "Ordinary course of business" means the trans­action of business by a person in the business of selling or resel ling membership camping plans.

(12) "Purchase price" means the total price of a mem­bership camping contract, including finance charges and related closing costs, if any, and excluding all dues payments.

(13) "Purchaser" means a person who purchases a membership camping contract and obtains the right to use the campgrounds and facilities of a membership camping plan .

(14) "Salesperson" means a person who is engaged in promoting, offering for sale, or selling a membership camping plan as the employee, independent contractor,

1161

s. 509.502 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 509.505

agent, officer, director, shareholder, partner, or principal of an offeror. This term does not include an offeror or a tour generator and does not include a purchaser who re­fers names of prospective purchasers to an offeror, pro­vided that such purchaser is not in the business of mak­ing such referrals .

(15) "Tour generator" means a person who is engaged in the referral of prospective purchasers of a member­ship camping plan to a salesperson or to an offeror. This term does not include an offeror and does not include a purchaser who refers names of prospective purchas­ers to an offeror, provided that such purchaser is not in the business of making such referrals .

( 16) "Trust account" means an account created and used for the purposes required in this act.

(17) "Trustee" includes only: (a) A savings and loan association, bank, trust com­

pany, or other financial lending institution having a net worth in excess of $5 million which is either located in this state or which has submitted to the jurisdiction of the circuit court of Leon County, Florida, and is other­wise acceptable; or

(b) An attorney who is a member in good standing of The Florida Bar and who has posted a fidelity bond in the amount of $50,000 issued by a company author­ized and licensed to do business in this state as surety.

History.- s. 2, ch. 88-157.

509.503 Membership camping contracts.-Each offeror of a membership camping plan must use and must furnish each purchaser with a fully completed copy of a contract incorporating the following information:

(1) The actual date the contract is executed by the offeror and the purchaser;

(2) The name and address of the offeror; (3) The name and address of the trustee; (4) A complete description of the purchase price; (5) The expiration date of the contract and the terms

and conditions of its extension or renewal , if applicable; (6) The disclosure required by s. 509.504; and (7) The disclosures required by s. 509.505.

Hlstory.-s. 3, ch. 88-157.

509.504 Cancellation.-(1) A purchaser has the right to cancel his contract

within the time period and in the manner described in paragraph (a) and to receive a refund of all sums paid to the offeror within the time period and in the manner described in paragraph (b). Any attempt by an offeror, tour generator, or salesperson to misrepresent this ab­solute right to cancel to a purchaser is a violation of this act.

(a) The following capitalized language must appear in at least 10-point type in close proximity to the pur­chaser's signature line on the contract: "YOU MAY CAN­CEL THIS CONTRACT WITHOUT ANY PENALTY OR OBLIGATION UNTIL MIDNIGHT OF THE 5TH DAY AF­TER THE DATE YOU SIGN THIS CONTRACT, UNLESS THE 5TH DAY FALLS ON A SUNDAY OR NATIONAL HOLIDAY, IN WHICH EVENT, YOU MAY CANCEL THIS CONTRACT WITHOUT PENALTY OR OBLIGATION UN­TIL MIDNIGHT ON THE FIRST BUSINESS DAY FOL­LOWING SUCH SUNDAY OR NATIONAL HOLIDAY. IF YOU DECIDE TO CANCEL THIS CONTRACT, YOU

MUST NOTIFY THE TRUSTEE IN WRITING OF YOUR CANCELLATION. YOUR CANCELLATION SHALL BE EFFECTIVE UPON THE DATE POSTMARKED AND SHALL BE MAILED TO rName of Trustee! AT !Address of

~· ANY A TIEMPT TO MISREPRESENT YOUR AB­SOLUTE CANCELLATION RIGHT IS UNLAWFUL."

(b) The contract shall also include the following statement: "Within 20 days after the trustee receives your written cancellation, the trustee shall refund to you the total amount of all payments which you have made under the contract, provided that such refunds may be made either by check or, if you used a credit card, by credit to your credit card account."

(2) The following capitalized language must appear in at least 10-point type in close proximity to the pur­chaser's signature line on the contract: "YOU MAY ALSO CANCEL THIS CONTRACT AT ANY TIME AFTER THE CAMPGROUNDS OR FACILITIES ARE NO LONG­ER AVAILABLE AS PROVIDED IN THIS CONTRACT."

(3) The offeror shall maintain among its business records a copy of each executed contract for a period of at least 3 years after the date of entering into the con­tract.

Hlstory.-s. 4, ch. 88- 157.

509.505 Required disclosures.-(1) The offeror of a membership camping plan shall

include the following disclosures within each member­ship camping contract:

(a) The following capital ized statement in at least 10-point type: "THESE DISCLOSURES CONTAIN IM­PORTANT MATIERS TO BE CONSIDERED IN ACQUIR­ING A CAMPGROUND MEMBERSHIP. THE STATE­MENTS CONTAINED HEREIN ARE ONLY SUMMARY IN NATURE. A PROSPECTIVE PURCHASER SHOULD RE­VIEW THESE MA TIERS CAREFULLY AND SHOULD NOT RELY UPON ORAL REPRESENTATIONS AS BE­ING CORRECT. REFER TO THESE DISCLOSURES FOR CORRECT REPRESENTATIONS. THE OFFEROR IS PROHIBITED FROM MAKING ANY REPRESENTATIONS CONTRADICTORY TO THOSE CONTAINED IN THE CONTRACT AND EXHIBITS THERETO."

(b) A summary of the offeror's experience in the business of developing and marketing membership camping plans.

(c) A summary of the nature and duration of the pur­chaser's use rights in the campgrounds and facilities in­cluded in the membership camping plan.

(d) A description of any mandatory dues payments which shall be payable to the offeror by the purchaser during the term of the contract, including a description of any limitation upon the offeror's ability, if any, to in­crease the dues payments from time to time. If there are no limitations upon the offeror's ability to increase the dues payments, the following capitalized statement must appear in at least 10-point type: "IN ADDITION TO THE PURCHASE PRICE, YOU MUST MAKE PERIODIC DUES PAYMENTS MORE SPECIFICALLY DESCRIBED HEREIN WHICH MAY BE INCREASED FROM TIME TO TIME WITHOUT LIMITATION ."

(e) A description of any optional user fees which may be imposed upon the purchaser by the offeror, in­cluding a description of any limitation upon the offeror's

1162

s. 509.505 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 509.507

ability to increase the various user fees from time to time.

(f) A summary of the description of the camp­grounds in the membership camping plan, including a summary description or grid outline of the type and num­ber of camping sites and facilities presently constructed at such campgrounds and a separate summary descrip­tion or grid outline of the type and number of camping sites and facilities planned but not yet constructed at such campgrounds. The summary description or grid outline must also include any specific goods or services for which an optional user fee may be charged.

(g) A description of the rights of any nonmembers of the membership camping plan to use the campgrounds and facilities of the membership camping plan .

(h) A description of the offeror's right to change or withdraw from use all or a portion of the campgrounds and facilities of the membership camping plan and the extent to which the offeror is obligated to replace any campgrounds or facilities withdrawn.

(i) A summary of the rules, restrictions, or cove­nants governing or regulating the purchaser's use of the campgrounds and facilities of the membership camping plan , including a description of the offeror's right to amend such rules, restrictions, or covenants.

(j) A description of any restrictions upon the trans­fer by the purchaser of the purchaser's membership in the membership camping plan.

(k) Such other information as is necessary to dis­close fully and fairly all aspects of the membership camping plan .

(2) In lieu of the disclosure required by paragraph (1 )(i) , the offeror may furnish to each purchaser a com­plete copy of the rules, restrictions, or covenants de­scribed in that paragraph at the time of execution of the contract by the purchaser.

Hlstory.-s. 5. ch. 88-157.

509.506 Trust accounts.-(1) All funds or other properties received from or on

behalf of a purchaser in connection with the execution of the membership camping contract shall be deposited by the offeror within 3 days after receipt by the offeror or a salesperson into a trust account with a financial in­stitution located in this state, established by a trustee solely for the purpose of refunds. The funds or other properties shall be maintained in the trust account until 5 days after the purchaser's cancellation period has ex­pired . If the purchaser delivers a written cancellation of the purchaser's contract to the trustee within the time period described in s. 509.504(1 )(a), the purchaser's funds or other properties shall be refunded by the trust­ee pursuant to s. 509.504(1 )(b). If the purchaser does not timely cancel the contract in the required manner, all funds or other properties received from the purchaser may be released by the trustee to the offeror on the 6th day after the expiration of the cancellation period. If the trustee receives conflicting demands for any funds or other properties held in the trust account, the trustee shall immediately either submit the matter to arbitration with the consent of the parties or, by interpleader or oth­erwise, seek an adjudication of the matter by a court of competent jurisdiction .

(2) All trustees shall be independent of the offeror, and neither the offeror nor any officer, director, affiliate, subsidiary, or employee of the offeror may serve as trustee; however, an attorney who represents an offeror but who is not an officer, director, or employee of the of­feror may serve as trustee for the offeror.

(3) The moneys held in trust pursuant to subsection (1) may be invested only in securities of the United States Government or any agency thereof or in savings or time deposits in institutions insured by an agency of the United States Government. The interest generated by the investments, if any, shall be paid to the party to whom the escrowed moneys are paid unless otherwise specified in the contract.

(4) Any offeror, trustee, or other person who inten­tionally fails to comply with the provisions of this section concerning the establishment of a trust account and the deposit and disbursement of funds and other properties received from a purchaser is guilty of a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084. The proof of failure to establish a trust account or to deposit funds therein as required by this section constitutes prima facie proof of the intent required by this subsection.

Hlstory.-s. 6, ch. 88- 157.

509.507 Advertising; disclosures; unlawful acts.­(1) Advertising by an offeror, salesperson , or tour

generator may not: (a) Misrepresent a material fact or create a false or

misleading impression regarding the membership camping plan .

(b) Make a prediction of specific or immediate in­creases in the price or value of membership camping contracts unless the increases are in fact planned by the offeror.

(c) Contain a statement concerning future price in­creases by the offeror which are nonspecific or not bona fide .

(d) Contain an asterisk or other reference symbol as a means of contradicting or substantially changing any previously made statement or as a means of obscuring a material fact.

(e) Describe a planned facility that is not yet con­structed unless the planned facility is conspicuously identified as proposed or under construction.

(f) Misrepresent the size, nature, extent, qualities, or characteristics of any campground or facilities.

(g) Misrepresent the amount or period of time during which any campgrounds or facilities will be available to any purchaser.

(h) Misrepresent the nature or extent of any services incident to the membership camping plan .

(i) Make a misleading or deceptive representation with respect to the content of the contract or the rights, privileges, benefits, or obligations of the purchaser un­der the contract or this act.

U) Misrepresent the conditions under which a pur­chaser may use campgrounds and facilities.

(k) Misrepresent the availability of a resale or rental program offered by or on behalf of the offeror.

(I) Contain an offer or inducement to purchase which purports to be limited as to quantity or restricted

1163

s. 509.507 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 509.511

as to time unless the numerical quantity or time limit ap­plicable to the offer or inducement is clearly stated.

(m) Imply that a facility is available for the exclusive use of purchasers if the facility will actually be shared by others or by the general public.

(n) Purport to have resulted from a referral unless the name of the person making the referral can be pro­duced upon demand.

(o) Misrepresent the source of the advertising by leading a prospective purchaser to believe that the ad­vertising is mailed by a governmental agency, credit bu­reau, bank, or attorney, if that is not the case.

(p) Misrepresent the value of any prize, gift, or other item to be awarded in connection with any prize and gift promotional offer.

(2) Written advertising may not be disseminated within this state unless it bears the following disclosure: "THIS ADVERTISING IS BEING USED FOR THE PUR­POSE OF SOLICITING SALES OF RESORT CAMP­GROUND MEMBERSHIPS." The disclosure shall be con­spicuous and shall in no event appear in less than 1 a­point type, unless the advertising is a postcard , in which case the disclosure shall be in bold type and at least as large as the main body type. This subsection does not apply to signs, billboards, and other similar advertising which is affixed to real or personal property and which is disseminated only by visual means.

History.-s. 7, ch. 88-157.

509.508 Prize and gift promotional offers.-( 1) As used in this section , the term "prize and gift

promotional offer" means any advertising material wherein a prospective purchaser may receive goods or services other than the membership camping plan itself, either free of charge or at a discount, including, but not limited to, the use of any prize, gift, award, premium, or lodging or vacation certificate.

(2) A game promotion , contest of chance, or sweep­stakes in which the elements of chance and prize are present may not be used by an offeror in connection with the offering for sale of membership camping plans.

(3) If a prospective purchaser meets all eligibility re­quirements stated in a prize and gift promotional offer, a prize, gift, or other item offered pursuant to a prize and gift promotional offer must be delivered to the prospec­tive purchaser on the day he appears to claim it, whether or not he executes a membership camping contract.

(4) The offeror shall maintain among its records for the period of 1 year following the completion of each prize and gift promotional offer the following information with regard to each prize and gift promotional offer:

(a) A copy of all advertising material used in connec­tio'n with the prize and gift promotional offer;

(b) The name, address, and telephone number, in­cluding area code, of the supplier or manufacturer from whom each type or variety of prize, gift, or other item is obtained ;

(c) The manufacturer's model number or other de­scription of such item; and

(d) The information on which the developer relies in determining the verifiable retail value of the prize or gift.

History.-s 8, ch. 88-157.

509.509 Purchasers' remedies.-An action for damages or injunctive or declaratory relief for a violation of this act may be brought by any purchaser against an offeror, a trustee, a salesperson, or a tour generator. The prevailing party in the action may recover reasonable at­torney's fees and costs from the losing party. Relief un­der this section does not exclude other remedies provid­ed by law.

History.-s. 9, ch. 88-157.

509.510 Violation of trust account provisions; mis­demeanor.-A person who willfully violates a provision of this act other than the provisions of s. 509.506 is guilty of a misdemeanor of the first degree, punishable as pro­vided in s. 775.082, s. 775.083, or 1s. 775.084.

History.-s. 10, ch. 88-157. 'Note.- Section 775.084 was amended by s. 6, ch. 88-131, deleting all reference

to misdemeanors.

509.511 Violation; Deceptive and Unfair Trade Practices Act.-A violation of this act is a deceptive and unfair trade practice and constitutes a violation of the Florida Deceptive and Unfair Trade Practices Act.

Hlstory.- s. 11 , ch. 88-157.

516.001 516.01 516.02 516.03 516.031 516.035 516.05 516.07

516.08 516.09 516.11 516.12 516.13 516.15 516.16

516.17

516.18 516.19 516.20 516.21 516.22 516.221

516.23 516.231 516.26

516.27 516.29

516.30

CHAPTER 516

CONSUMER FINANCE

Short title. Definitions. Loans; lines of credit; rate of interest; license. Application for license; fees ; etc. Finance charge; maximum rates . Rate of interest upon default. License. Grounds for denial of license or for disciplinary

action . License to be posted . License, removal, other business. Investigations and complaints . Records to be kept by licensee. False publications prohibited. Duties of licensee. Confession of judgment; power of attorney;

contents of notes and security. Assignment of wages, etc ., given to secure

loans. Rate of interest or consideration. Penalties. "Interest" defined. Restriction of borrower's indebtedness. Regulations ; certified copies. Liability when acting upon department's or-

der, declaratory statement, or rule. Subpoenas; enforcement actions; rules . Appointment of managers; qualifications . Purchase or assignment of wages, salaries,

etc. Preexisting contracts. Suspension or revocation of license for unrea­

sonable collection tactics. Period of transition allowed.

1164

s. 516.001 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 516.03

516.31

516.32 516.33 516.34

516.35

516.36 516.37

Consumer protection; certain negotiable in­struments restricted ; assigns subject to de­fenses ; limitation on deficiency claims ; cross collateral.

Consumer credit counseling. Public disclosures. Transfer of licenses held under former chapter

519. Credit insurance must comply with credit in­

surance act. Monthly installment requirement. Transactions governed.

516.001 Short title.-[The repeal of this section by s. 2, ch. 81-318, was nullified by s. 16, ch. 88-342. Re­pealed effective October 1, 1998, by s. 17, ch . 88-342, and scheduled for review pursuant to s. 11 .61 .]

1516.01 Definitions.-As used in this chapter, the term:

(1) "Consumer finance borrower" or "borrower" means a person who has incurred either direct or contin­gent liability to repay a consumer finance loan.

(2) "Consumer finance loan" means a loan of money, credit , goods , or choses in action , including, except as otherwise specifically indicated , provision of a line of credit , in an amount or to a value of $5,000 or less for which the lender charges, contracts for, collects, or re­ceives interest at a rate greater than 18 percent per an­num.

(3) "Department" means the Department of Banking and Finance.

(4) "Interest" means the cost of obtaining a consum­er finance loan and includes any profit or advantage of any kind whatsoever that a lender may charge, contract for, collect , receive, or in anywise obtain , including by means of any collateral sale, purchase, or agreement, as a condition for a consumer finance loan. Charges specif­ically permitted by this chapter, including commissions received for insurance written as permitted by this chap­ter, shall not be deemed interest.

(5) "License" means a permit issued under this chap­ter to make and collect loans in accordance with this chapter at a single place of business.

(6) "Licensee" means a person to whom a license is issued.

Hlstory.-s. 19,ch. 10177, 1925; CGL4016; s. 6, ch. 20728, 1941 ; s. 7,ch. 22858, 1945; s. 1, ch. 57-201 ; ss. 12, 35, ch. 69-1 06; s. 193, ch. 71-377; s. 189, ch. 77- 104; s. 2, ch. 81-318; s. 1, ch. 86-100; ss. 1, 16, 17, ch. 88-342. 'Note.-Repealed effective October 1, 1998, by s. 17, ch. 88- 342, and scheduled

for review pursuant to s. 11 .61.

1516.02 Loans; lines of credit; rate of interest; li­cense.-

(1) A person must not engage in the business of making consumer finance loans unless he is authorized 2to do so under this chapter or other statutes and unless he first obtains a license from the department.

(2)(a) A person who is engaged in the business of making loans of money, except as authorized by this chapter or other statutes of this state, may not directly or indirectly charge, contract for, or receive any interest or consideration greater than 18 percent per annum upon the loan , use, or forbearance of money, goods, or

choses in action , or upon the loan or use of credit, of the amount or value of $5,000 or less.

(b) The prohibition in paragraph (a) applies to any lender who, as security for any such loan, use, or for­bearance of money, goods , or choses in action, or for any such loan or use of credit , makes a pretended pur­chase of property from any person and permits the own­er or pledgor to retain the possession thereof or who by any device or pretense of charging for services or other­wise seeks to obtain a greater compensation than is authorized by this chapter .

(c) A loan for which a greater rate of interest or charge than is allowed by this chapter has been con­tracted for or received , wherever made, is not enforce­able in this state, and each person who in any manner participates therein in this state is subject to this chap­ter. However, this paragraph does not apply to loans le­gally made to a resident of another state by a person within that state if that state has in effect a regulatory small loan or consumer finance law similar in principle to this chapter.

(3) A licensee may offer lines of credit not exceeding $25,000 and may charge, contract for, and receive inter­est charges and other charges pursuant to s. 516.031 , except that a licensee may not offer a credit card.

(4) This chapter does not apply to any person who does business under, and as permitted by, any law of this state or of the United States relating to banks, sav­ings banks, trust companies, building and loan associa­tions, credit unions, or industrial loan and investment companies or to any bona fide pawnbroking business transacted under a pawnbroker's license. A pawnbroker may not be licensed to transact business under this chapter.

History.-s. 1, ch . 10177, 1925; CGL3999; s. 2, ch. 57-201 ; ss. 12, 35, ch. 69-1 06; s. 2, ch. 73- 192; ss. 1. 15, ch. 79-274; s. 1, ch. 79-592; s. 2, ch . 81-318; s. 1, ch. 85-32; s. 2, ch. 86-100; ss . 2, 16, 17, ch . 88- 342.

'Note.-Repealed effective October 1, 1998, by s. 17, ch. 88-342, and scheduled for review pursuant to s. 11 .61.

•Note.-The words "to do so· were inserted by the editors.

1516.03 Application for license; fees; etc.-(1) APPLICATION .-Application for a license to

make loans under this chapter shall be in writing , under oath , and in the form prescribed by the department, and shall contain the name, residence and business ad­dresses of the applicant and , if the applicant is a copart­nership or association, of every member thereof and, if a corporation, of each officer and director thereof, also the county and municipality with the street and number or approximate location where the business is to be con­ducted , and such further relevant information as the de­partment may require. At the time of making such appli­cation the applicant shall pay to the department a bien­nial license fee of $550. Applications, except for applica­tions to renew or reactivate a license, must be accompa­nied by an investigation fee of $200.

(2) FEES.-Fees herein provided for shall be collect­ed by the department and shall be turned into the State Treasury to the credit of the regulatory trust fund under the Division of Finance of the department. The depart­ment shall have full power to employ such examiners or clerks to assist the department as may from time to time be deemed necessary and fix their compensation .

History.-s. 2, ch. 10177, 1925; CGL 4000; s. 1, ch . 20728, 1941 ; s. 127, ch. 28869,

1165

s. 516.03 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 516.035

1951; s. 3, ch. 57- 201; ss. 12, 35, ch. 69- 106; s. 138, ch. 71-355; s. 3, ch. 73-192; s. 3, ch. 73- 326; s. 144, ch. 79-164; s. 2, ch. 81 - 318; ss. 3, 16, 17, ch. 88- 342.

1Note.-Repealed effective October 1, 1998, by s. 17, ch . 88- 342, and scheduled for review pursuant to s. 11 .61 .

1516.031 Finance charge; maximum rates.-(1) INTEREST RATES.-Every licensee may lend

any sum of money not exceeding $25,000. A licensee may not take a security interest secured by land on any loan less than $1 ,000. The licensee may charge, con­tract for, and receive thereon interest charges as provid­ed and authorized by this section. The maximum inter­est rate shall be 30 percent per annum, computed on the first $500 of the principal amount as computed from time to time; 24 percent per annum on that part of the princi­pal amount as computed from time to time exceeding $500 and not exceeding $1 ,000; and 18 percent per an­num on that part of the principal amount as computed from time to time exceeding $1 ,000 and not exceeding $5,000; on loans exceeding $5,000, the total interest charged on the entire principal amount shall not exceed 18 percent per annum simple interest. The original prin­cipal amount as used in this section shall be the same amount as the amount financed as defined by the feder­al Truth in Lending .Act and Regulation Z of the Board of Governors of the Federal Reserve System. In deter­mining compliance with the statutory maximum interest and finance charges set forth herein, the computations utilized shall be simple interest and not add-on interest or any other computations.

(2) ANNUAL PERCENTAGE RATE UNDER FEDER­AL TRUTH IN LENDING ACT.-The annual percentage rate of finance charge which may be contracted for and received under any loan contract made by a licensee un­der this chapter may equal, but not exceed, the annual percentage rate which must be computed and dis­closed as required by the federal Truth in Lending Act and Regulation Z of the Board of Governors of the Fed­eral Reserve System. The maximum annual percentage rate of finance charge which may be contracted for and received is 12 times the maximum monthly rate , and the maximum monthly rate shall be computed on the basis of one-twelfth of the annual rate for each full month . The department shall by regulation establish the rate for each day in a fraction of a month when the period for which the charge is computed is more or less than 1 month .

(3) OTHER CHARGES.-(a) In addition to the interest and insurance charges

herein provided for , no further or other charges or amount whatsoever for any examination, service, bro­kerage fee, commission , or other thing or otherwise shall be directly or indirectly charged, contracted for, or re­ceived as a condition to the grant of a loan, except:

1. Charges paid for title insurance and the apprais-al of real property offered as security when paid to a third party and supported by an actual expenditure;

2. Intangible personal property tax on the loan note or obligation when secured by a lien on real property;

3. The documentary excise tax and lawful fees, if any, actually and necessarily paid out by the licensee to any public officer for filing , recording , or releasing in any public office any instrument securing the loan , which

fees may be collected when the loan is made or at any time thereafter;

4. The premium payable for any insurance in lieu of perfecting any security interest otherwise required by the licensee in connection with the loan, if the premium does not exceed the fees which would otherwise be payable, which premium may be collected when the loan is made or at any time thereafter;

5. Actual and reasonable attorney's fees and court costs as determined by the court in which suit is filed; or

6. Actual and commercially reasonable expenses of repossession , storing , repairing and placing in condition for sale, and sell ing of any property pledged as security.

Any charges, including interest, in excess of the com­bined total of all charges authorized and permitted by this chapter constitute a violation of chapter 687 govern­ing interest and usury, and the penalties of that chapter apply. In the event of a bona fide error, the licensee shall refund or credit the borrower with the amount of the overcharge immediately but within 20 days from the dis­covery of such error.

(b) Notwithstanding the provisions of paragraph (a), any lender of money who receives a check, draft, nego­tiable order of withdrawal , or like instrument drawn on a bank or other depository institution, which instrument is given by a borrower as full or partial repayment of a loan , may, if such instrument is not paid or is dishonored by such institution, make and collect from the borrower a bad check charge of not more than the greater of $10 or an amount equal to the actual charge made to the lender by the depository institution for the return of the unpaid or dishonored instrument.

(4) DIVIDED LOANS.-No licensee shall induce or permit any borrower to split up or divide any loan. No li­censee shall induce or permit any person, or any hus­band and wife, jointly or severally, to become obligated to him, directly or contingently or both, under more than one contract of loan at the same time, for the purpose, or with the result , of obtaining a greater finance charge than would otherwise be permitted by this section.

(5) UNPAID INTEREST UPON REFINANCING.-If all or part of the consideration for a new loan contract is the unpaid principal balance of a prior loan with the licensee, the principal amount payable under the new loan con­tract may include not more than 60 days' unpaid interest accrued on the prior loan.

Hlstory.-s. 7, ch. 73-1 92; ss. 1, 2, ch. 76-180; s. 190, ch. 77- 104; s. 1, ch. 77-174; ss. 2, 15, ch. 79-274; s. 1, ch. 79-592; s. 1, ch. 80-412; s. 1, ch. 81-299; s. 2, ch. 81 -31 8; s. 1, ch. 84-193; s. 2, ch. 85-32; ss. 4, 16, 17, ch. 88-342. •Note.-Repealed effective October 1, 1998, by s. 17, ch. 88-342, and scheduled

for review pursuant to s. 11 .61.

1516.035 Rate of interest upon default.-ln the event that any balance remains unpaid at the expiration of the scheduled maturity date of a loan, licensees may continue to charge interest on the unpaid balance at the rate provided for in s. 516.031 (1) for a period not to ex­ceed 12 months. Thereafter, the interest shall not ex­ceed the permissible rate of interest provided by chap­ter 687. When advances are made pursuant to a line of credit , a licensee may charge interest on the unpaid bal­ance at the rate provided for ins. 516.031 (1) for the peri­od a balance remains unpaid .

1166

s. 516.035 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 516.07

History.-s. 1, ch. 79-59; s. 2, ch . 81-318; s. 5, ch. 85-32; s. 3, ch. 86-100; ss. 5, 16, 17, ch. 88-342.

'Note.-Repealed effective October 1, 1998, by s. t7, ch. 88-342. and scheduled for review pursuant to s. 11 .61.

1516.05 License.-(1) Upon the filing of an application for a license and

payment of all applicable fees, the department shall , un­less the application is to renew or reactivate an existing license, make an investigation of the facts concerning the applicant's proposed activities. If the department determines that a license should be granted, it shall is­sue the license for a period not to exceed 2 years. Bien­nial licensure periods and procedures for renewal of li­censes shall be established by the rule of the depart­ment. If the department determines that grounds exist under this chapter for denial of an application other than an application to renew a license, it shall deny such ap­plication , return to the applicant the sum paid as a li­cense fee, and retain the investigation fee.

(2) A license that is not renewed at the end of the biennium established by the department shall automati­cally revert to inactive status. An inactive license may be reactivated upon submission of a completed reactiva­tion application, payment of the biennial license fee, and payment of a reactivation fee which shall equal the bien­nial license fee. A license expires on the date at which it has been inactive for 6 months.

(3) Only one place of business for the purpose of making loans under this chapter may be maintained un­der one license. but the department may issue addition­al licenses to a licensee upon compliance with all the provisions of this chapter governing issuance of a single license.

(4) A licensee may not change the place of business maintained under a license without prior approval of the department. When a licensee wishes to change a place of business, the licensee shall give written notice thereof to the department, and, if the department finds that the proposed location is reasonably accessible to borrowers under existing loan contracts , it shall permit the change and shall amend the license accordingly. If the depart­ment does not so find, it shall enter an order denying re­moval of the business to the requested location.

(5) A licensee may conduct the business of making loans under this chapter within a place of business in which other business is solicited or engaged in, unless the department shall find that the conduct of such other business by the licensee results in an evasion of this chapter. Upon such finding , the department shall order the licensee to desist from such evasion; provided, how­ever, that no license shall be granted to or renewed for any person or organization engaged in the pawnbroker business.

(6) If any person purchases substantially all of the assets of any existing licensed place of business, the purchaser shall give immediate notice thereof to the de­partment and shall be granted a 90-day temporary li­cense for the place of business within 10 days after the department's receipt of an application for a permanent license. Issuance of a temporary license for a place of business nullifies the existing license for the place of business, and the temporary licensee is subject to any disciplinary action provided for by this chapter.

(7) Licenses are not transferable or assignable. A li­censee may invalidate any license by delivering it to the department with a written notice of the delivery, but such delivery does not affect any civil or criminal liability or the authority to enforce this chapter for acts commit­ted in violation thereof.

(8) The department may refuse to process an initial application for a license if the applicant or any person with power to direct the management or policies of the applicant's business is the subject of a pending criminal prosecution in any jurisdiction until conclusion of such criminal prosecution.

Hlstory.-s. 4, ch. 10177, 1925; CGL 4002; s. 2, ch. 20728, 1941; s. 4, ch. 57-201 ; ss . t2, 35, ch. 69-106; ss. 4, 15, ch. 73-192; s. 2, ch. 77-256; s. 7, ch. 78-95; s. 2. ch . 81-318; ss. 6, 16, 17, ch. 88-342.

1Note.-Repealed effective October 1, 1998, by s. 17, ch. 88-342, and scheduled for review pursuant to s. 11 .61. cf.-s. 112.011 Felons; removal of disqualifications for employment, exceptions.

1516.07 Grounds for denial of license or for disci­plinary action.-

(1) The following acts are violations of this chapter and constitute grounds for denial of an application for a license to make consumer finance loans and grounds for any of the disciplinary actions specified in subsection (2):

(a) A material misstatement of fact in an application for a license;

(b) Failure to maintain liquid assets of at least $25,000 at all times for the operation of business at a li­censed location or proposed location;

(c) Failure to demonstrate financial responsibility, experience, character, or general fitness , such as to command the confidence of the public and to warrant the belief that the business operated at the licensed or proposed location is lawful, honest, fair, efficient, and within the purposes of this chapter;

(d) The violation, either knowingly or without the ex­ercise of due care, of any provision of this chapter, any rule or order adopted under this chapter, or any written agreement entered into with the department;

(e) Any act of fraud, misrepresentation, or deceit, re­gardless of reliance by or damage to a borrower, or any illegal activity, where such acts are in connection with a loan under this chapter. Such acts include but are not limited to:

1. Willful imposition of illegal or excessive charges; or

2. Misrepresentation , circumvention, or conceal-ment of any matter required to be stated or furnished to a borrower;

(f) The use of unreasonable collection practices or of false, deceptive , or misleading advertising, where such acts are in connection with the operation of a busi­ness to make consumer finance loans;

(g) Any violation of part Ill of chapter 817 or part II of chapter 559;

(h) Failure to maintain, preserve, and keep available for examination, all books, accounts, or other docu­ments required by this chapter, by any rule or order adopted under this chapter, or by any agreement en­tered into with the department; or

(i) Refusal to permit inspection of books and re:c­ords in an investigation or examination by the depart-

1167

s. 516.07 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 516.21

ment or refusal to comply with a subpoena issued by the department.

(2) Upon a finding by the department that any per­son has committed any of the acts set forth in subsec­tion (1 ), the department may enter an order taking one or more of the following actions:

(a) Denying an application for a license; (b) Revoking or suspending a license previously

granted ; (c) Placing a licensee or an applicant for a license on

probation for a period of time and subject to such condi­tions as the department may specify;

(d) Placing permanent restrict ions or conditions upon issuance or maintenance of a license;

(e) Issuing a reprimand; or (f) Imposing an administrative fine not to exceed

$1 ,000 for each such act. (3) The department may take any of the actions

specified in subsection (2) against any partnership, cor­poration , or association, if the department finds that any of the acts set forth in subsection (1) have been commit­ted by any member of the partnership, any officer or di­rector of the corporation or association, or any person with power to direct the management or policies of the partnership, corporation, or association.

(4) A licensee is responsible for the acts of the li­censee's employee or agent if, with knowledge of such acts, the licensee retained profits, benefits, or advan­tages accruing from such acts or rat ified the conduct of the employee or agent as a matter of law or fact.

(5) Action taken under this section against a licens­ee does not impair the obligation of any lawful contract between the licensee and a borrower. This chapter does not prevent a licensee from lending to residents of any part of this state or any other state or country or prohibit the making of loans by mail.

Hlatory.-s. 6, ch. 101 77, 1925; CGL 4004; s. 3, ch. 20728, 1941 ; ss. 12, 35, ch. 69- 106; s. 7, ch. 78-95; s. 145, ch. 79-164; s. 2, ch. 81 - 318; ss. 7, 16, 17, ch. 88-342.

1Note.-Repealed effective October 1, 1998, by s. 17, ch. 88-342, and scheduled for review pursuant to s. 11 .61 .

516.08 License to be posted.-[The repeal of this section by s. 2, ch. 81-318, was nullified by s. 16, ch. 88-342. Repealed effective October 1, 1998, by s. 17, ch. 88-342, and scheduled for review pursuant to s. 11 .61.]

516.09 License, removal, other business.-[Re­pealed by s. 15, ch . 88-342.]

1516.11 Investigations and complaints.-(1) The department shall , at intermittent periods,

make such investigations and examinations of any li­censee or other person as it deems necessary to deter­mine compliance with this chapter. For such purposes, the department may examine the books, accounts, rec­ords, and other documents or matters of any licensee or other person and compel the production of all relevant books, records , and other documents and materials rela­tive to an examination or investigation . Examinations of a licensee may not be made more often than once a year unless the department has reason to believe the licens­ee is not complying with this chapter. Each licensee shall pay to the department an examination fee based

upon the amount of outstanding loans due the licensee at the time of the examination , as follows:

Amount Outstanding Examination Fee From $0 to $50,000 .. ................................................. $100 From $50,000.01 to $100,000 .... ... .......... .... .. .......... .. .. 125 From $100,000.01 to $250,000 ............ .... .......... ...... ... 150 From $250,000.01 to $500,000 .. .. ............................... 200 From $500,000.01 and over ....................................... . 325

(2) Any person who has reason to believe that this chapter has been or will be violated may file a written complaint with the department.

Hlatory.-s. 10, ch. 10177, 1925; CGL 4008; s. 4, ch. 20728, 1941; s. 6, ch. 57- 201 ; ss. 12, 35, ch. 69-106; s. 5, ch. 73-192; s. 1, ch. 77-356; s. 2, ch. 81-299; s. 2, ch. 81 -318; ss. a. 16, 17, ch. 88-342.

•Note.-Repealed effective October 1, 1998, by s. 17, ch. 88-342, and scheduled for review pursuant to s. 11.61.

516.12 Records to be kept by licensee.-(The re­peal of this section by s. 2, ch . 81 - 318, was nullified by s. 16, ch. 88-342. Repealed effective October 1, 1998, by s. 17, ch. 88- 342, and scheduled for review pursuant to s. 11 .61 .]

516.13 False publications prohibited.-[Repealed by s. 15, ch . 88-342.)

516.15 Duties of licensee.-[The repeal of this sec­tion by s. 2, ch . 81 - 318, was nullified by s. 16, ch. 88-342. Repealed effective October 1, 1998, by s. 17, ch . 88- 342, and scheduled for review pursuant to s. 11.61 .]

516.16 Confession of judgment; power of aHorney; contents of notes and security.- [The repeal of this section by s. 2, ch. 81 - 318, was nullified by s. 16, ch. 88-342. Repealed effective October 1, 1998, by s. 17, ch. 88-342, and scheduled for review pursuant to s. 11 .61 .]

516.17 Assignment of wages, etc., given to secure loans.-(The repeal of this section by s. 2, ch . 81 - 318, was nullified by s. 16, ch . 88- 342. Repealed effective October 1, 1998, by s. 17, ch. 88-342, and scheduled for review pursuant to s. 11 .61 .]

516.18 Rate of interest or consideration.-[Re­pealed by s. 15, ch . 88- 342.]

1516.19 Penalties.- Any person who violates any of the provisions of s. 516.02, s. 516.031 , s. 516.05(3), s. 516.05(4), s. 516.05(5), or s. 516.07(1)(e) is guilty of a misdemeanor of the first degree, punishable as provid­ed in s. 775.082, s. 775.083, or 2s. 775.084.

Hlatory.-s. 18, ch. 10177 , 1925; CGL 7880; s. 487, ch . 71-136; s. 13, ch. 73- 192; s. 2, ch. 81- 31 8; ss. 9, 16, 17, ch . 88-342.

1Note.-Repealed effective October 1, 1998, by s. 17, ch . 88- 342, and scheduled for review pursuant to s. 11.61 .

•Note.-Section 775.064 was amended by s. 6, ch. 88-131 , deleting all reference to misdemeanors.

516.20 "Interest" defined.- [Repealed by s. 15, ch . 88-342.]

1516.21 Restriction of borrower's indebtedness.­No licensee shall directly or indirectly charge, contract for, or receive any interest, discount, or consideration greater than 18 percent per annum upon any loan, or upon any part or all of any aggregate loan indebtedness

1168

s. 516.21 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 516.27

of the same borrower, of the amount of more than $5,000. The foregoing prohibition shall also apply to any licensee who permits any person, as borrower or as en­dorser, guarantor, or surety for any borrower, or other­wise, or any husband and wife, jointly or severally, to owe directly or contingently or both to the licensee at any time a sum of more than $5,000 for principal. Howev­er, if the proceeds of any Joan of $5,000 or less are used to discharge a preexisting debt of the borrower for goods or services owed directly to the person who pro­vided such goods or services, the licensee may accept from such person a guaranty of payment of the principal of such loan with interest at a rate not exceeding 18 per­cent per annum, and the acceptance of one or more such guaranties in any aggregate amount shall not af­fect the rights of such licensee to make the charges against the primary borrower authorized by s. 516.031, nor shall the limitation apply to the isolated acquisition directly or indirectly by purchase or by discount of bona fide obligations of a borrower. However, in the event a licensee makes a bona fide purchase of substantially all of the loans made under this chapter from another li­censee or other lender not affiliated with the purchaser and such licensee or other lender has an existing loan outstanding to one or more of the borrowers whose loans are purchased, such licensee making such pur­chase shall be entitled to liquidate and collect the bal­ances due on such loans, including all lawful charges and interest at the rates or amounts agreed upon in such loan contracts.

History.-s. 8, ch. 20728, 1941 ; s. 12, ch. 57-201 ; s. 11 , ch. 73-192; ss. 4, 15, ch. 79- 274; s. 1, ch. 79-592; s. 2, ch . 81-318; s. 4, ch. 85-32; ss. 10, 16, 17, ch. 88-342.

1Note.-Repealed effective October 1, 1998, by s. 17, ch. 88-342, and scheduled for review pursuant to s. 11.61.

516.22 Regulations; certified copies.-[The repeal of this section by s. 2, ch. 81-318, was nullified by s. 16, ch. 88-342. Repealed effective October 1, 1998, by s. 17, ch. 88-342, and scheduled for review pursuant to s. 11.61.)

516.221 Liability when acting upon department's order, declaratory statement, or rule.-[The repeal of this section by s. 2, ch. 81-318, was nullified by s. 16, ch . 88-342. Repealed effective October 1, 1998, by s. 17, ch. 88-342, and scheduled for review pursuant to s. 11.61 .)

1516.23 Subpoenas; enforcement actions; rules.-(1) The department may issue and serve subpoenas

to compel the attendance of witnesses and the produc­tion of documents, papers, books, records, and other evidence before it in any matter pertaining to this chap­ter. The department may administer oaths and affirma­tions to any person whose testimony is required . If any person refuses to testify, produce books, records, and documents, or otherwise refuses to obey a subpoena is­sued under this section, the department may enforce the subpoena in the same manner as subpoenas issued

lion is held at the place of business or residence of the witness.

(2) In addition to any other powers conferred upon it to enforce or administer this chapter, the department may:

(a) Bring an action in any court of competent juris­diction to enforce or administer this chapter, any rule or order adopted under this chapter, or any written agree­ment entered into with the department. In such action, the department may seek any relief at law or equity in­cluding a temporary or permanent injunction, appoint­ment of a receiver or administrator, or an order of restitu­tion.

(b) Issue and serve upon a person an order requiring such person to cease and desist and take corrective ac­tion whenever the department finds that such person is violating , has violated, or is about to violate any provi­sion of this chapter, any rule or order adopted under this chapter, or any written agreement entered into with the department.

(c) Impose and collect an administrative fine against any person found to have violated any provision of this chapter, any rule or order adopted under this chapter, or any written agreement entered into with the depart­ment, in an amount not to exceed $1,000 for each viola­tion.

(3) The department may adopt rules and perform such other acts as are necessary for the proper adminis­tration, enforcement, and interpretation of this chapter.

History.-s. 9, ch . 20728, 1941 ; ss. 11 , 12, 35, ch . 69-106; s. 2, ch. 81-318; ss. 11 , 16, 17, ch . 88-342.

1Note.-Repealed effective October 1, 1998, by s. 17, ch. 88-342, and scheduled for review pursuant to s. 11 .61 .

516.231 Appointment of managers; qualifications. [Repealed by s. 15, ch. 88-342.]

1516.26 Purchase or assignment of wages, salaries, etc.-The payment of $25,000 or less in money, credit, goods, or things in action as consideration for any sale or assignment of or order for the payment of wages, sal­ary, commissions, or other compensation for services, whether earned or to be earned, shall, for the purposes of regulation under, and the enforcement and interpreta­tion of, any law, civil or criminal, relating to loans, interest charges, or usury, be deemed a loan secured by such assignment, and the amount by which such assigned compensation exceeds the amount of such consider­ation actually paid shall, for the purpose of regulation un­der, and the interpretation and enforcement of, such Jaw, be deemed interest upon such loan from the date of such payment until the date such compensation is payable. Each such transaction shall be governed by and subject in all respects to all provisions of Jaw relating to loans, interest, charges, usury, and to the same ex­tent as if it had been in form a loan of the sum paid for the assignment.

History.-s. 1, ch. 20209, 1941 ; s. 14, ch. 57-201 ; s. 191 , ch. 77-104; s. 2, ch. 81-318; ss. 12, 16, 17, ch . 88-342.

•Note.-Repealed effective October 1, 1998, by s. 17, ch . 88-342, and scheduled for review pursuant to s. 11.61.

under the Administrative Procedure Act are enforced. 516.27 Preexisting contracts.-[The repeal of this Witnesses are entitled to the same fees and mileage as section by s. 2, ch. 81-318, was nullified by s. 16, ch . 88-they are entitled to by Jaw for attending as witnesses in 342. Repealed effective October 1, 1998, by s. 17, ch. the circuit court, unless such examination or investiga- 88-342, and scheduled for review pursuant to s. 11.61.]

1169

s. 516.29 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 516.36

516.29 Suspension or revocation of license for un­reasonable collection tactics.-[Repealed by s. 15, ch . 88-342.]

516.30 Period of transition allowed.-[Repealed by s. 15, ch. 88-342.]

1516.31 Consumer protection; certain negotiable in­struments restricted; assigns subject to defenses; lim­itation on deficiency claims; cross collateral.-

(1) SCOPE.-This section applies to every consum­er finance loan or other contract authorized by this chap­ter in which any form of credit is extended to an individu­al to purchase or obtain goods or services for use pri­marily for personal , family, or household purposes.

(2) RESTRICTION ON CERTAIN NEGOTIABLE IN­STRUMENTS AND INSTALLMENT CONTRACTS.-A holder or assignee of any negotiable instrument or in­stallment contract, other than a currently dated check, which originated from the purchase of certain consumer goods or services is subject to all claims and defenses of the consumer debtor against the seller of those con­sumer goods or services. A person's liability under this section may not exceed the amount owing to the person when the claim or defense is asserted against the per­son.

(3) LIMITATIONS ON DEFICIENCY CLAIMS.-If a creditor takes possession of property which was collat­eral under a consumer credit transaction, the consumer shall not be personally liable to the creditor for any un­paid balance of the obligation unless the unpaid balance of the consumer's obligation at the time of default was $2,000 or more. When the unpaid balance is $2,000 or more, the creditor shall be entitled to recover from the consumer the deficiency, if any, resulting from deduct­ing the fair market value of the collateral from the unpaid balance due. In a proceeding for a deficiency, the fair market value of the collateral shall be a question for the trier of fact. Periodically published trade estimates of the retail value of goods shall, to the extent they are recog­nized in the particular trade or business, be presumed to be the fair market value of the collateral.

(4) CROSS COLLATERAL.-If debts arising from two or more retail installment sales or other credit con­tracts with individual consumers are secured by more than one security interest, or consolidated into one debt payable on a single schedule of payments and the debt is secured by security interests taken with respect to one or more of the sales, payments received by the sell­er are deemed, for the purpose of determining the amount of the debt secured by the various security in­struments, to have been first applied to the payment of the debt arising from the sale first made. To the extent that debts are paid according to this section, security in­terests in items of property terminate as the debt origi­nally incurred with respect to each item is paid. Pay­ments received by the seller or holder upon a revolving account are deemed, for the purpose of determining the amount of the debt secured by the various security inter­ests, to have been applied first to the payment of fi-

made. If the debts consolidated arose from two or more credit sales or other credit contracts with an individual which were made on the same day, payments received by the seller or holder are deemed, for the purpose of determining the amount of the debt secured by the vari­ous security interests, to have been applied first to the payment of the smallest debt.

(5) PURCHASERS OF RETAIL INSTALLMENT CON­TRACTS MUST BE LICENSED UNDER CHAPTER 520. A licensee under the Consumer Finance Act who pur­chases or holds retail installment contracts as defined in s. 520.31 in this state shall also be licensed under chapter 520 as an Installment Sales Finance Act licens­ee.

(6) WAIVER.-Waiver by the buyer of any provisions in this section shall be void and unenforceable as con­trary to public policy.

History.-s. 12, ch. 73-192; s. 1, ch. 77-174; s. 2, ch. 81-318; ss. 13, 16, 17, ch . 88-342.

1Note.-Repealed effective October 1, 1998, by s. 17, ch. 88-342, and scheduled for review pursuant to s. 11 .61 .

516.32 Consumer credit counseling.-[The repeal of this section by s. 2, ch . 81-318, was nullified by s. 16, ch. 88-342. Repealed effective October 1, 1998, by s. 17, ch. 88-342, and scheduled for review pursuant to s. 11.61.]

516.33 Public disclosures.-[The repeal of this sec­tion by s. 2, ch. 81-318, was nullified by s. 16, ch. 88-342. Repealed effective October 1, 1998, by s. 17, ch. 88-342, and scheduled for review pursuant to s. 11 .61 .]

516.34 Transfer of licenses held under former chapter 519.-[Repealed by s. 15, ch. 88-342.]

1516.35 Credit insurance must comply with credit in­surance act.-

(1) Tangible property offered as security may be rea­sonably insured against loss for a reasonable term, con­sidering the circumstances of the loan. If such insurance is sold at standard rates through a person duly licensed by the Department of Insurance and if the policy is pay­able to the borrower or any member of his family, it shall not be deemed to be a collateral sale, purchase, or agreement even though a customary mortgagee clause is attached or the licensee is a coassured.

(2) Credit property, credit life, and disability insur­ance may be provided at the expense of the borrowers and must be provided under a group or individual insur­ance policy which complies with ss. 627.676-627.684 and lawful regulations thereunder. The cost of such in­surance shall be deducted from the principal amount of the loan and shall be disclosed on the statement re­quired by s. 516.15(1) or on a combined note and disclo­sure statement required by the federal Truth in Lending Act.

History.-s. 12, ch . 73-192; s. 2, ch. 81-318; s. 536, ch. 82-243; ss. 14, 16, 17, ch. 88-342.

1Note.-Repealed effective October 1, 1998, by s. 17, ch. 88-342, and scheduled for review pursuant to s. 11 .61.

nance charges in the order of their entry to the account 516.36 Monthly installment requirement.-[The re-and then to the payment of debts in the order in which peal of this section by s. 2, ch. 81-318, was nullified by the entries to the account showing the debts were s. 16, ch. 88-342. Repealed effective October 1, 1998,

1170

s. 516.36 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 517.051

by s. 17, ch. 88-342, and scheduled for review pursuant to s. 11 .61.)

516.37 Transactions governed.-[Repealed by s. 15, ch. 88-342.]

517.051 517.12

517.1205

CHAPTER 517

SECURITIES TRANSACTIONS

Exempt securities. Registration of dealers, associated persons,

investment advisers, and branch offices. Registration of associated persons specific

as to securities dealer or investment advi­sor identified at time of registration ap­proval.

1517.051 Exempt securities.-The registration provi­sions of s. 517.07 do not apply to any of the following se­curities:

(1) A security issued or guaranteed by the United States or any territory or insular possession of the United States, by the District of Columbia, or by any state of the United States or by any political subdivision or agency or other instrumentality thereof; provided that no person shall directly or indirectly offer or sell securities, other than general obligation bonds, under this subsection if the issuer or guarantor is in default or has been in default any time after December 31, 1975, as to principal or in­terest:

(a) With respect to an obligation issued by the issuer or successor of the issuer; or

(b) With respect to an obligation guaranteed by the guarantor or successor of the guarantor,

except by an offering circular containing a full and fair disclosure as prescribed by rule of the department.

(2) A security issued or guaranteed by any foreign government with which the United States is maintaining diplomatic relations at the time of the sale or offer of sale of the security, or by any state, province, or political sub­division thereof having the power of taxation or assess­ment, which security is recognized at the time it is of­fered for sale in this state as a valid obligation by such foreign government or by such state, province, or politi­cal subdivision thereof issuing the security.

(3) A security issued or guaranteed by: (a) A national bank, a federally chartered savings

and loan association, or a federally chartered savings bank, or the initial subscription for equity securities in such national bank, federally chartered savings and loan association, or federally chartered savings bank;

(b) Any federal land bank, joint-stock land bank, or national farm loan association under the provisions of the Federal Farm Loan Act of July 17, 1916;

(c) An international bank of which the United States is a member; or

(d) A corporation created and acting as an instru­mentality of the government of the United States.

(4) A security issued or guaranteed, as to principal , interest, or dividend, by a corporation owning or operat-

ing a railroad or any other public service utility; provided that such corporation is subject to regulation or supervi­sion whether as to its rates and charges or as to the is­sue of its own securities by a public commission , board , or officer of the government of the United States, of any state, territory, or insular possession of the United States, of any municipality located therein, of the District of Columbia, or of the Dominion of Canada or of any province thereof; also equipment securities based on chattel mortgages, leases, or agreements for conditional sale of cars , motive power, or other rolling stock mort­gaged, leased, or sold to or furnished for the use of or upon such railroad or other public service utility corpora­tion or where the ownership or title of such equipment is pledged or retained in accordance with the provisions of the laws of the United States or of any state or of the Dominion of Canada to secure the payment of such equipment securities; and also bonds , notes, or other evidences of indebtedness issued by a holding corpora­tion and secured by collateral consisting of any securi­ties hereinabove described; provided, further, that the collateral securities equal in fair value at least 125 per­cent of the par value of the bonds, notes, or other evi­dences of indebtedness so secured .

(5) A security issued or guaranteed by any of the fol­lowing which are subject to the examination, supervi­sion , or control of this state or of the Federal Deposit In­surance Corporation or the Federal Savings and Loan In­surance Corporation :

(a) A bank, (b) A trust company, (c) A savings institution, (d) A building or savings and loan association, or (e) An international development bank;

or the initial subscription for equity securities of any insti­tution listed in paragraphs (a)-( e) , provided such institu­tion is subject to the examination, supervision, or control of this state.

(G) A security, other than common stock, providing for a fixed return, which security has been outstanding in the hands of the public for a period of not less than 5 years, and upon which security no default in payment of principal or failure to pay the fixed return has occurred for an immediately preceding period of 5 years.

(7) Securities of nonprofit agricultural cooperatives organized under the laws of this state when the securi­ties are sold or offered for sale to persons principally en­gaged in agricultural production or selling agricultural products.

(8) A note, draft, bill of exchange, or banker's acceptance having a unit amount of $25,000 or more which arises out of a current transaction, or the pro­ceeds of which have been or are to be used for current transactions, and which has a maturity period at the time of issuance not exceeding 9 months exclusive of days of grace, or any renewal thereof which has a matu­rity period likewise limited .

(9) A security issued by a corporation organized ex­clusively for religious, educational , benevolent, fraternal, charitable , or reformatory purposes and not for pecuni­ary profit, no part of the net earnings of which corpora­tion inures to the benefit of any private stockholder or

1171

s. 517.051 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 517.12

individual ; provided that no person shall directly or indi­rectly offer or sell securities under this subsection ex­cept by an offering circular containing full and fair disclo­sure, as prescribed by the rules of the department, of all material information, including, but not limited to , a description of the securities offered and terms of the of­fering , a description of the nature of the issuer's busi­ness, a statement of the purpose of the offering and the intended application by the issuer of the proceeds thereof, and financial statements of the issuer prepared in conformance with generally accepted accounting principles.

(1 0) Any insurance or endowment policy or annuity contract or optional annuity contract or self-insurance agreement issued by a corporation , insurance company, reciprocal insurer, or risk retention group subject to the supervision of the insurance commissioner or bank com­missioner, or any agency or officer performing like func­tions, of any state or territory of the United States or the District of Columbia.

History.- s. 1, ch. 78-435; ss. 3, 15, ch. 79-381; s. 5, ch. 80-254; ss. 2, 6, ch. 81 - 115; ss. 2, 3, ch. 81 -318; s. 3, ch. 83-265; s. 2, ch. 84-1 59; s. 3, ch. 85-165; s. 2, ch. 86-82; s. 4, ch. 86-85; s. 41 , ch. 86-160; s. 4, ch. 87-237 ; s. 3, ch. 87-316; s. 1, ch. 86- 187.

'Note.-Repealed effective October 1, 1990, by s. 2, ch. 81-31 8, and scheduled for review pursuant to s. 11.61 in advance of that date.

1517.12 Registration of dealers, associated per­sons, investment advisers, and branch offices.-

( 1) No dealer, associated person , or issuer of securi­ties shall sell or offer for sale any securities in or from of­fices in this state, or sell securities in this state to per­sons of this state from offices outside this state, by mail or otherwise, unless the person has been registered with the department pursuant to the provisions of this section .

(2) The registration requirements of this section do not apply to the issuers of securities exempted by s. 517.051(1)-(8) and (10).

(3) Except as otherwise provided in s. 517.061 (11 )(a)4., the registration requirements of this section do not apply in a transaction exempted by s. 517 .061(1)-(12), (14), and (15).

(4) No investment adviser or associated person of an investment adviser shall engage in business from of­fices in this state, or render investment advice to per­sons of this state, by mail or otherwise, unless the in­vestment adviser and associated persons have been registered with the department pursuant to this section . A dealer or associated person who is registered pursu­ant to this section may render investment advice upon notification to and approval from the department.

(5) No dealer or investment adviser shall conduct business from a branch office within this state unless the branch office is registered with the department pur­suant to the provisions of this section.

(6) A dealer, associated person, investment adviser, or branch office, in order to obtain registration, must file with the department a written application , in a form which the department may by rule prescribe, verified un­der oath . Each dealer or investment adviser must also file an irrevocable written consent to service of civil proc­ess similar to that provided for ins. 517 .101 . The applica­tion shall contain such information as the department may require concerning such matters as :

(a) The name of the applicant and the address of its principal offic~ and each office in this state.

(b) The applicant's form and place of organization; and , if the applicant is a corporation, a copy of its articles of incorporation and amendments to the articles of incor­poration or, if a partnership, a copy of the partnership agreement.

(c) The applicant's proposed method of doing busi­ness and financial condition and history, including a cer­tified financial statement showing all assets and all liabil­ities, including contingent liabilities of the applicant as of a date not more than 90 days prior to the filing of the application.

(d) The names and addresses of all associated per­sons of the applicant to be employed in this state and the offices to which they will be assigned.

(7) The application shall also contain such informa­tion as the department may require about the applicant; any partner, officer, or director of the applicant or any person having a similar status or performing similar func­tions; any person directly or indirectly controlling the ap­plical')t ; or any employee of a dealer or of an investment adviser rendering investment advisory services. Each applicant shall file a complete set of fingerprints taken by an authorized law enforcement officer. Such finger­prints shall be submitted to the Department of Law En­forcement or the Federal Bureau of Investigation for state and federal processing . The department may waive, by rule, the requirement that applicants must file a set of fingerprints or the requirement that such finger­prints must be processed by the Department of Law En­forcement or the Federal Bureau of Investigation. The department may require information about any such ap­plicant or person concerning such matters as:

(a) His full name, and any other names by which he may have been known, and his age, photograph, qualifi­cations, and educational and business history.

(b) Any injunction or administrative order by a state or federal agency, national securities exchange, or na­tional securities association involving a security or any aspect of the securities business and any injunction or administrative order by a state or federal agency regu­lating banking , insurance, finance, or small loan compa­nies, real estate, mortgage brokers, or other related or similar industries, which injunctions or administrative or­ders relate to such person .

(c) His conviction of, or plea of nolo contendere to, a criminal offense or his commission of any acts which would be grounds for refusal of an application under s. 517.161 .

(d) The names and addresses of other persons of whom the department may inquire as to his character, reputation, and financial responsibility.

(8) The department may require the applicant or one or more principals or general partners, or natural per­sons exercising similar functions, or any agent­applicant to successfully pass oral or written examina­tions. The examination standards may be higher for a dealer, office manager, principal , or person exercising similar functions than for a nonsupervisory associated person. The department may waive the examination process when it determines that such examinations are not in the public interest. The department shall waive

1172

s. 517.12 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 517.1205

the examination requirements for any person who has passed any tests as prescribed in s. 15(b)(8) of the Se­curities Exchange Act of 1934.

(9) The department may by rule require the mainte­nance of a minimum net capital for registered dealers and investment advisers, or prescribe a ratio between net capital and aggregate indebtedness , to assure ade­quate protection for the investing public.

(10) An applicant for registration shall pay an assess­ment fee of $200, in the case of a dealer or investment adviser, or $20, in the case of an associated person . An associated person not having current fingerprint cards filed with the National Association of Securities Dealers or a national securities exchange registered with the Se­curities and Exchange Commission shall be assessed an additional fee to cover the cost for said fingerprint cards to be processed by the department. Such fee shall be determined by rule of the department. Each dealer and each investment adviser shall pay an assess­ment fee of $100 for each office in this state, except its designated principal office. Such fees become the reve­nue of the state, except for those assessments provided for under s. 517.131(1) until such time as the Securities Guaranty Fund satisfies the statutory limits, and are not returnable in the event that registration is withdrawn or not granted .

(11) If the department finds that the applicant is of good repute and character and has complied with the provisions of this chapter and the rules made pursuant hereto, it shall register the applicant. The registration of each dealer, investment adviser, associated person , and branch office will expire on December 31 of the year in which it became effective unless the applicant has re­newed its registration on or before that date. Registra­tion may be renewed by furnishing such information as the department may require , together with payment of the fee required in subsection (10) for dealers, invest­ment advisers, associated persons, or branch offices. Any registrant who has not renewed a registration by the time the current registration expires may request rein­statement of such registration by filing with the depart­ment, on or before January 31 of the year following the year of expiration , such information as may be required by the department, together with payment of the fee re­quired in subsection (1 0) for dealers, investment advis­ers, associated persons, or branch offices and a late fee equal to the amount of such fee . Any reinstatement of registration granted by the department during the month of January shall be deemed effective retroactive to January 1 of that year.

(12)(a) The department may issue a license to a deal­er, investment adviser, associated person , or branch of­fice to evidence registration under this chapter. The de­partment may require the return to the department of any license it may issue prior to issuing a new license.

(b) Every dealer or investment adviser shall prompt­ly file with the department, as prescribed by rules adopt­ed by the department, notice as to the termination of employment of any associated person registered for such dealer or investment adviser in this state and shall also furnish the reason or reasons for such termination .

(c) Each dealer or investment adviser shall desig­nate in writing to , and register with , the department a

manager for each office the dealer or investment adviser has in this state.

(13) Changes in registration occasioned by changes in personnel of a partnership or in the principals, copart­ners, officers, or directors of any dealer or investment adviser or by changes of any material fact or method of doing business shall be reported by written amendment in such form and at such time as the department may specify. In any case in which a person or a group of per­sons , directly or indirectly or acting by or through one or more persons, proposes to purchase or acquire a con­trolling interest in a registered dealer or investm!;!nt ad­viser, such person or group shall submit an initial appli­cation for registration as a dealer or investment adviser prior to such purchase or acquisition . The department shall adopt rules providing for waiver of the application required by this subsection where control of a registered dealer or investment adviser is to be acquired by anoth­er dealer or investment adviser registered under this chapter or where the application is otherwise unneces­sary in the public interest.

(14) Every dealer, investment adviser, or branch of­fice registered or required to be registered with the de­partment shall keep records of all currency transactions in excess of $10,000 and shall file reports, as prescribed under the financial recordkeeping regulations in 31 C.F .R. pt. 103, with the department when transactions occur in or from this state. All reports required by this subsection to be filed with the department shall be con­fidential except that any law enforcement agency or the Department of Revenue shall have access to, and shall be authorized to inspect and copy, such reports .

(15) In lieu of fil ing with the department the applica­tions specified in subsection (6) , the fees required by subsection (10) , and the termination notices required by subsection (12) , the department may by rule establish procedures for the deposit of such fees and documents with the Central Registration Depository of the National Association of Securities Dealers, Inc., as developed un­der contract with the North American Securities Admin­istrators Association, Inc.; provided , however, that such procedures shall provide the department with the infor­mation and data as required by this section .

(16) Except for securities dealers who are designated by the Federal Reserve Bank of New York as primary government securities dealers or securities dealers reg­istered as issuers of securities , every applicant for initial or renewal registration as a securities dealer shall be regi stered as a broker or dealer with the Securities and Exchange Commission and shall be subject to insur­ance coverage by the Securities Investor Protection Cor­poration .

History.-s.tt,ch.t 4899, t93t ; s.6, ch. t7253, t 935; CGL t 936Supp. 6002(t 2); s. 3, ch. 20960, t 94t ; s. 3, ch. 2t709, t943; s. t, ch. 57-288; s. t , ch. 59- t 69; s. t , ch. 63-32 t ; s. 6, ch . 65-454; ss. t2, 35, ch. 69- t06; s. 6, ch. 7t - 96; s. 2, ch. 72- t52; s. 3, ch. 73-68; s. t, ch. 74-278; s. 3, ch. 76- t68; s. t 94, ch. 77-t04; s. t , ch. 77-457; s. 4, ch. 78- 435; s. t 9, ch. 79-8; s. t49, ch. 79-t64; ss . 7, t5, ch. 79-38t; ss. 3-5, ch. 80-254; ss. 2, 3, ch . 80- 403; ss. 4, 6, ch. 8t - tt 5; ss. 2, 3, ch. 8t-3t8; s. 3, ch. 83- t84; s. 3, ch. 83- 265; s. 4, ch. 84- t 59; s. 9, ch. 85- t 65; s. 8, ch. 86-85; s. 2, ch. 88- t87.

'Note.-Repealed effective October t , t 990, by s. 2, ch. 8t-3 t8, and scheduled for review pursuant to s. t t.6t in advance of that date. . cf.-s.tt2.0tt Felons; removal of disqualifications for employment , exceptions.

517.1205 Registration of associated persons spe­cific as to securities dealer or investment advisor iden-

1173

s. 517.1205 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 542.33

tified at time of registration approval.-lnasmuch as chapter 517 is intended to protect investors in securities offerings and other investment transactions regulated by that chapter, its provisions are to be construed tore­quire full and fair disclosure of all , but only, those mat­ters material to the investor's evaluation of the offering or other transaction . It should, furthermore, be con­strued to impose the standards provided by law on all those seeking to participate in the state's securities in­dustry through registration as securities dealers, invest­ment advisors, or their associated person . To this end, it is declared to be the intent of the Legislature that the registration of associated persons required by law is specific to the securities dealer or investment advisor identified at the time such registration is approved. Not­withstanding any interpretation of law to the contrary, the historical practice of the Department of Banking and Finance, reflected in its rules, that requires a new appli­cation for registration from a previously registered asso­ciated person when that person seeks to be associated with a new securities dealer or investment advisor is hereby ratified and approved as consistent with legisla­tive intent. It is, finally, declared to be the intent of the Legislature that while approval of an application for reg­istration of a securities dealer, investment advisor, asso­ciated person, or branch office requires a finding of the applicant's good repute and character, such finding is precluded by a determination that the applicant may be denied registration on grounds provided by law.

History.-s. 3, ch. 88-187.

CHAPTER 526

SALE OF LIQUID FUELS; BRAKE FLUID

PART I

SALE OF LIQUID FUELS

526.3055 Unlawful to deposit motor fuel in tank re­quired to be registered, without proof of registration display.

526.3055 Unlawful to deposit motor fuel in tank re­quired to be registered, without proof of registration display.-[Amended and transferred to s. 376.3077 by s. 5, ch . 88-331 .]

CHAPTER 538

METALS DEALERS, PROCESSORS, AND FOUNDERS

538.011 Precious metals dealers ; records and reports of purchases.

538.018 Penalties for violations by precious metals dealers.

538.011 Precious metals dealers; records and re­ports of purchases.-

(1) Each precious metals dealer shall maintain for a period of 1 year following any purchase of precious met­al the following records of such purchase:

(a) The full name; residence address; home tele­phone number, if any; place of employment; business telephone number, if any; and age, race, and sex of each person from whom the precious metal is purchased , the records including the signature of the seller, together with the driver's license number or the number from an­other form of identification issued by a governmental agency, one other identifying number, and a thumbprint of the seller.

(b) A specific description of the precious metal item, which description is accurate and as reasonably com­plete as the nature of the item permits. The description of the precious metal item shall include:

1. The type of item; 2. The substance of which the item is made, wheth­

er gold, silver, or platinum; 3. The manufacturing company, if that can be de­

termined; and 4. Any permanent initialing or marking on the item,

including a brand , monogram, or hallmark. (c) The quantity of the precious metal purchased. (d) The date of the purchase. (e) The amount paid by the dealer for the item. (2) A copy of the records of any purchase of pre­

cious metal shall be entered on a form approved by the Department of Law Enforcement and shall be submitted within 24 hours after the purchase to the sheriff of the county in which the business is operated and to the mu­nicipal police department of the municipality in which the business is operated .

Hlatory.-s. 1, ch. 83-94; s. 1, ch. 83-344; s. 39, ch. 88-381.

538.018 Penalties for violations by precious metals dealers.-Any person who violates s. 538.011 (1 ), s. 538.012, or s. 538.014 or who refuses to allow a law en­forcement officer to make an inspection required by s. 538.016 is guilty of a misdemeanor of the first degree, punishable as provided in s. 775.082, s. 775.083, or 1s. 775.084 and by a fine not to exceed $10,000.

Hlatory.-s. 1, ch. 83- 94; s. 1, ch . 83-344; s. 40, ch. 88-381 . 1Note.-Section 775.084 was amended by s. 6, ch. 88- 131, deleting all reference

to misdemeanors.

CHAPTER 542

COMBINATIONS RESTRICTING TRADE OR COMMERCE

542.33 Contracts in restraint of trade valid.

542.33 Contracts in restraint of trade valid.-(1) Notwithstanding other provisions of this chapter

to the contrary, each contract by which any person is re­strained from exercising a lawful profession , trade, or business of any kind , as provided by subsections (2) and (3) hereof, is to that extent valid , and all other con­tracts in restraint of trade are void .

(2)(a) One who sells the goodwill of a business, or any shareholder of a corporation sell ing or otherwise dis­posing of all of his shares in said corporation, may agree

1174

s. 542.33 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 548.006

with the buyer, and one who is employed as an agent, independent contractor, or employee may agree with his employer, to refrain from carrying on or engaging in a similar business and from soliciting old customers of such employer within a reasonably limited time and area, so long as the buyer or any person deriving title to the goodwill from him, and so long as such employer, continues to carry on a like business therein. Said agree­ments may, in the discretion of a court of competent ju­risdiction, be enforced by injunction .

(b) The licensee, or any person deriving title from the licensee, of the use of a trademark or service mark, and the business format or system identified by that trade­mark or service mark, may agree with the licensor to re­frain from carrying on or engaging in a similar business and from soliciting old customers of such licensor within a reasonably limited time and area, so long as the licen­sor, or any person deriving title from the licensor, contin­ues to carry on a like business therein. Said agreements may, in the discretion of a court of competent jurisdic­tion, be enforced by injunction.

(3) Partners may, upon or in anticipation of a dissolu­tion of the partnership, agree that all or some of them will not carry on a similar business within a reasonably limited time and area.

(4) This section does not apply to any litigation which may be pending, or to any cause of action which may have accrued, prior to May 27, 1953.

History.-ss. 1, 2, 3, 4, ch. 28048, 1953; s. 1, ch. 79--43; s. 2, ch. 80-28; s. 1, ch. 87 -40; s. 1, ch. 88-400.

Note.-Former s. 542.12.

548.002 548.006

548.007

548.008

548.017

548.023 548.043 548.045

548.046

548.047

548.049

548.05 548.053

548.054

548.056

CHAPTER 548

PUGILISTIC EXHIBITIONS

Definitions. Power of commission to control pugilistic con­

tests and exhibitions. Applicability of act to amateur matches and

certain other matches or events. Toughman and badman competition prohibit­

ed. Boxers, managers, and other persons re-

quired to have licenses. Fingerprints. Weights and classes, limitations; gloves. Medical advisory council; qualifications, com-

pensation, powers and duties. Physician 's attendance at match; examina­

tions; cancellation of match. Duty of licensee to disclose condition of par­

ticipant. Medical, surgical, and hospital insurance; life

insurance. Control of contracts. Distribution of purses to participants; state­

ments. Withholding of purses; hearing; disposition of

withheld purse forfeiture. Prohibited financial interests in participant;

penalties .

548.057 Attendance of referee and judges at match; scoring ; seconds.

548.07 Suspension of license or permit by commis-sioner; hearing.

548.077 State Athletic Commission Trust Fund; collec­tion and disposition of moneys.

1548.002 Definitions.-As used in this act, the term: (1) "Amateur" means a person who has never re­

ceived nor competed for any purse or other article of val­ue, either for the expenses of training or for participating in a match, other than a prize of $50 in value or less.

(2) "Boxing" means to compete with the fists. (3) "Commission" means the State Athletic Commis­

sion. (4) "Contest" means a boxing, kickboxing, or martial

arts engagement in which the participants strive ear­nestly to win.

(5) "Exhibition" means a boxing, kickboxing, or mar­tial arts engagement in which the participants show or display their skill without necessarily striving to win.

(6) "Foreign copromo.ter" means a promoter who has no place of business within this state.

(7) "Judge" means a person who has a vote in deter­mining the winner of any contest.

(8) "Kickboxing" means to compete with the fists , feet, legs, or any combination thereof, and includes "punchkick" and other similar competitions.

(9) "Manager" means any person who, directly or in­directly, controls or administers the boxing, kickboxing, or martial arts affairs of any participant.

(10) "Match" means any contest or exhibition. ( 11) "Matchmaker" means a person who brings to­

gether professionals or arranges matches for profes­sionals.

(12) "Physician" means an individual licensed to prac­tice medicine and surgery in this state.

(13) "Professional" means a person who has received or competed for any purse or other article of a value greater than $50, either for the expenses of training or for participating in any match.

(14) "Promoter" means any person, and includes any officer, director, employee, or stockholder of a corporate promoter, who produces, arranges, or stages any match involving a professional.

(15) "Purse" means the financial guarantee or other remuneration for which a professional is participating in a match and includes the professional 's share of any payment received for radio broadcasting, television, and motion picture rights.

History.-ss. 2, 4, ch. 84-246; s. 1, ch. 88-365. 'Note.-Expires October 1, 1994, pursuant to s. 4, ch. 84-246, and is scheduled

for review pursuant to s. 11 .61 in advance of that date.

1548.006 Power of commission to control pugilistic contests and exhibitions.-The commission has exclu­sive jurisdiction over every match held within the state which involves a professional. Matches shall be held only in accordance with this chapter.

History.-ss. 2, 4, ch. 84-246; s. 2, ch. 88-365. •Note.-Expires October 1, 1994, pursuant to s. 4, ch. 84-246, and is scheduled

for review pursuant to s. 11 .61 in advance of that date.

1175

s. 548.007 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 548.046

1548.007 Applicability of act to amateur matches and certain other matches or events.-Sections 548 001-548.079 do not apply to:

(1) Any match in which the participants are ama­teurs ;

(2) Any match conducted or sponsored by a univer­sity, college, or secondary school if all the participants are students regularly enrolled in the institution;

(3) Any match conducted or sponsored by a nation­ally chartered veterans' organization registered with the state;

(4) Any match conducted or sponsored by any com-pany or detachment of the Florida National Guard; or

(5) Any official Olympic event. History.-ss. 2. 4, ch. 84-246: s. 3, ch. 88-365.

1Note.-Expires October 1, 1994, pursuant to s. 4, ch. 84-246, and is scheduled for review pursuant to s. 11 .61 in advance of that date.

1548.008 Toughman and badman competition pro­hibited.-

(1) No tough man or bad man match, as described in this section, may be held in this state. Such competition includes any contest or exhibition where participants compete by using a combination of fighting skills . Such skills may include, but are not limited to, boxing , wres­tling, kicking , or martial arts skills . Notwithstanding the above, this section shall not preclude kickboxing as reg­ulated by this chapter.

(2) Any person participating in or promoting a tough­man or badman match is guilty of a misdemeanor of the second degree, punishable as provided in s. 775.082, s. 775.083, or 2s. 775.084.

History.-ss. 4, 18, ch. 88-365. 1Note.-Expires October 1, 1994, pursuant to s. 18, ch. 88-365, and is scheduled

for review pursuant to s. 11 .6~. 2Note.-Section 775.084 was amended by s. 6, ch. 88-131 , deleting all reference

to misdemeanors.

1548.017 Boxers, managers, and other persons re­quired to have licenses.-

(1) A professional participant, manager, trainer, sec­ond , timekeeper, referee, judge, announcer, physician , matchmaker, or booking agent or representative of a booking agent shall be licensed before directly or indi­rectly acting in such capacity in connection with any match involving a professional.

(2) A violation of this section is a misdemeanor of the second degree, punishable as provided in s. 775.082, s. 775.083, or 2s. 775.084.

History.-ss. 2, 4, ch. 84-246; s. 5, ch . 88-365. •Note.-Expires October 1, 1994, pursuant to s. 4, ch. 84-246, and is scheduled

for review pursuant to s. 11 .61 in advance of that date. 'Note.-Section 775.084 was amended by s. 6, ch. 88-131 , deleting all reference

to misdemeanors.

548.023 Fingerprints.- [Repealed by s. 17, ch . 88-365.]

1548.043 Weights and classes, limitations; gloves. (1) The commission shall establish classes of boxers

based upon weights. (2) No boxing match shall be held in which the differ­

ence in weight of the participants exceeds 10 pounds, except matches in the light-heavyweight and heavy­weight classes and exhibitions held solely for training purposes.

(3) All participants in boxing matches shall wear boxing gloves weighing not less than 6 ounces each. Participants in all other types of matches shall wear such protective devices as the commission deems neces­sary.

History.- ss. 2, 4, ch. 84-246; s. 6, ch . 88-365. •Note.-Expires October 1, 1994, pursuant to s. 4, ch. 84-246, and is scheduled

for review pursuant to s. 11 .61 in advance of that date.

1548.045 Medical advisory council; qualifications, compensation, powers and duties.-

(1) A medical advisory council, which shall consist of five members appointed by the Governor, is created . Each member must be licensed to practice medicine in this state and must, at the time of his appointment, have practiced medicine at least 5 years.

(2) Initially, two of the members shall be appointed for terms of 1 year, one member shall be appointed for a term of 2 years , one member shall be appointed for a term of 3 years , and one member shall be appointed for a term of 4 years. The term of each member thereafter appointed, except to fill a vacancy, shall be 4 years.

(3) The Governor shall designate one of the mem­bers of the council as its chairman .

(4) Each member shall be paid per diem for each day that he performs his duties under this chapter and shall be reimbursed for his expenses as provided in s. 112.061 .

(5) The council shall prepare, and submit to the com­mission, standards for the physical and mental examina­tion of participants in matches. A standard shall not be­come effective until approved by the commission. The council shall recommend physicians who are qualified to make the examinations of participants in matches re­quired by this chapter and shall perform any other duties as the commission may direct.

Hlstory.-ss. 2, 4, ch. 84-246; s. 7, ch. 88-365. 1Note.- Expires October 1, 1994, pursuant to s. 4, ch. 84-246, and is scheduled

for review pursuant to s. 11 .61 in advance of that date.

1548.046 Physician's attendance at match; exami­nations; cancellation of match.-

(1) The commission shall assign to each match a physician who shall observe the physical condition of the participants and advise the commissioner or deputy in charge and the referee of the participants' conditions before and during the match . The commission shall es­tablish a schedule of fees for the physician 's services . The physician's fee shall be paid by the promoter of the match attended by the physician .

(2) In addition to any other required examination , each participant shall be examined by the attending physician within 12 hours before he enters the ring . If the physician determines that a participant is physically or mentally unfit to proceed, the physician shall notify any commissioner or the deputy in charge who shall immedi­ately cancel the match . The examination shall conform to rules adopted by the commission based on the advice of the medical advisory council. The result of the exami­nation shall be reported in a writing signed by the physi­cian and filed with the commission within 72 hours after the match .

History.- ss. 2, 4, ch . 84-246; s. 98, ch . 85-81: s. 8, ch. 88-365. •Note.-Expires October 1, 1994, pursuant to s. 4, ch. 84-246, and is scheduled

for review pursuant to s. 11 .61 in advance of that date.

1176

s. 548.047 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 548.056

1548.047 Duty of licensee to disclose condition of participant-A licensee shall disclose all information in his possession concerning any mental or physical dis­ability, injury, illness, or incapacity of a participant in a match, immediately after learning thereof, to the com­mission, the deputy in charge, the attending physician, or the referee.

History.-ss. 2, 4, ch. 84-246; s. 9, ch. 88-365. 'Note.-Expires October 1, 1994, pursuant to s. 4, ch. 84-246, and is scheduled

for review pursuant to s. 11.61 in advance of that date.

1548.049 Medical, surgical, and hospital insurance; life insurance.-

(1) The commission shall, by rule, require partici­pants to be covered by not less than $2,500 of insurance for medical, surgical , and hospital care required as are­sult of injuries sustained while engaged in matches. The insured shall be the beneficiary of such policies.

(2) The commission may also require participants to be covered by not less than $5,000 of life insurance cov­ering deaths caused by injuries received while engaged in matches.

History.-ss. 2, 4, ch . 84-246; s. 99, ch. 85-81; s. 10, ch. 88-365. 1Note.-Expires October 1, 1994, pursuant to s. 4, ch. 84-246, and is scheduled

for review pursuant to s. 11 .61 in advance of that date.

1548.05 Control of contracts.-(1) The commission shall adopt rules governing the

form and content of contracts between promoters, for­eign copromoters , and professionals. All such contracts shall be in writing.

(2) Each contract between a manager and a profes­sional shall contain provisions governing its duration, di­vision of the professional 's purses, and any minimum sum guaranteed annually to the professional by the manager. Each contract shall provide that it is automati­cally terminated if the license of either party is revoked by the commission or if the manager fails to renew his license within 30 days after its expiration date. If the li­cense of either party is suspended, the contract is not binding upon the other party during the period of sus­pension.

(3) The commission may require that each contract contain language authorizing the State Athletic Com­mission to withhold any or all of any manager's share of a purse in the event of a contractual dispute as to entitle­ment to any portion of a purse. The commission may es­tablish rules governing the manner of resolution of such dispute. In addition , if the commission deems it appro­priate, the commission is hereby authorized to implead interested parties over any disputed funds into the ap­propriate circuit court for resolution of the dispute prior to release of all or any part of the funds.

(4) Each contract subject to this section shall con­tain the following clause: "This agreement is subject to the provisions of chapter 548, Florida Statutes, and to the rules of the State Athletic Commission and to any fu­ture amendments of either."

History.- ss. 2, 4, ch. 84-246; s. 11 , ch. 88-365. 1Note.-Expires October 1, 1994, pursuant to s. 4, ch . 84-246, and is scheduled

for review pursuant to s. 11.61 in advance of that date.

1548.053 Distribution of purses to participants; statements.-

(1) Unless otherwise directed by a representative of the commission, all purses shall be distributed by the

promoter no later than 24 hours after the match. A writ­ten statement showing the distribution of the purse, in­cluding each item of receipt and each expenditure or de­duction, shall be furnished to the participant and his manager, together with the participant's share of the purse . The promoter shall file a copy of the statement, certified by him to be correct, with receipted vouchers for all expenditures and deductions, with the commis­sion no later than 72 hours after the match.

(2) Unless otherwise directed by a representative of the commission, a manager shall furnish to the partici­pant he manages a statement of distribution , together with the participant's share of the purse, no later than 24 hours after the manager receives the purse and statement from the promoter. The manager shall file a copy of the statement, certified by him to be correct, with receipted vouchers for all expenditures and deduc­tions, with the commission no later than 72 hours after he receives the distribution from the promoter.

History.-ss. 2, 4, ch. 84-246; s. 12, ch. 88-365. 1Note.-Expires October 1, 1994, pursuant to s. 4, ch. 84-246, and is scheduled

for review pursuant to s. 11 .61 in advance of that date.

1548.054 Withholding of purses; hearing; disposi­tion of withheld purse forfeiture.-

(1) A member of the commission, the deputy in charge, or the referee may order a promoter to withhold any purse or other funds payable to a participant, or to withhold the share of any manager, if it appears that:

(a) The participant is not competing honestly, or is intentionally not competing to the best of his ability and skill, in a match represented to be a contest; or

(b) The participant, his manager, or any of his sec­onds has violated this chapter .

(2) Any purse so withheld shall be delivered by the promoter to the commission upon demand. Within 10 days after the match, the person from whom the sum was withheld may apply in writing to the commission for a hearing. Upon receipt of the application, the commis­sion shall fix a date for a hearing . Within 10 days after the hearing or after 10 days following the match, if no ap­plication for a hearing is filed, the commission shall meet and determine the disposition to be made of the with­held purse. If the commission finds the charges suffi­cient, it may declare all or any part of the funds forfeited. If the commission finds the charges not sufficient upon which to base a withholding order, it shall immediately distribute the withheld funds to the persons entitled thereto.

(3) If a contestant's purse is forfeited, the commis­sion may include any payments or advances as part of the forfeiture , and if the contestant does not forward such amount to the commission, such payments and ad­vances may be recovered in the same manner as a debt due the state.

History.-ss. 2, 4, ch. 84-246; s. 13, ch. 88-365. 'Note.-Expires October 1, 1994, pursuant to s. 4, ch. 84-246, and is scheduled

for review pursuant to s. 11.61 in advance of that date.

1548.056 Prohibited financial interests in partici­pant; penalties.-

(1) A member of the commission; an employee of the commission; a referee, judge, or promoter licensed by the commission; or an attending physician may not

1177

s. 548.056 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 548.077

have any direct or indirect financial or pecuniary interest in any participant.

(2)(a) A manager, trainer, or second of any partici­pant shall not have any direct or indirect financial or pe­cuniary interest in the opponent in any contest in which his own participant participates.

(b) A participant shall not have any direct or indirect financial or pecuniary interest in his opponent in any contest.

(3) A violation of this section is a misdemeanor of the second degree, punishable as provided in s. 775.082 or s. 775.083.

History.- ss. 2, 4, ch. 84-246; s. 14, ch. 88-365. 'Note.-Expires October 1, 1994, pursuant to s. 4, ch. 84-246, and is scheduled

for review pursuant to s. 11 .61 in advance of that date.

1548.057 Attendance of referee and judges at match; scoring; seconds.-

(1) At each boxing match involving a professional , except at an exhibition held solely for training purposes, at the expense of the promoter, a referee designated by the commission shall direct and control the match.

(2) At each boxing contest, at the expense of the promoters, three judges shall attend and shall render their individual decisions in writing on scorecards sup­plied by the commission at the end of each contest which continues for the scheduled number of rounds. Each judge shall have one vote, and a majority of the votes cast shall determine the winner.

(3) The commission shall prescribe the methods of scoring.

(4) Before the start of any boxing match, the referee shall obtain the name of each boxer's chief second. The chief second shall be responsible for the conduct of his assistants during the match.

(5) For matches other than boxing, the commission shall establish such standards and requirements for ref­erees as are deemed necessary.

History.-ss. 2, 4, ch. 84-246; s. 2, ch. 85-21 ; s. 15, ch. 88-365. 1Note.- Expires October 1, 1994, pursuant to s. 4, ch. 84-246, and is scheduled

for review pursuant to s. 11 .61 in advance of that date.

1548.07 Suspension of license or permit by commis­sioner; hearing.-Notwithstanding any provision of chapter 120, any member of the commission may, upon his own motion or upon the verified written complaint of any person charging a licensee or permittee with violat­ing this chapter, suspend any license or permit until final determination by the commission if such action is neces­sary to protect the public welfare and the best interests of the sport. The commission shall hold a hearing within 10 days after the date on which the license or permit is suspended.

History.-ss. 2, 4, ch. 84-246; s. 16, ch. 88-365. 'Note.-Expires October 1, 1994, pursuant to s. 4, ch. 84-246, and is scheduled

for review pursuant to s. 11 .61 in advance of that date.

1548.077 State Athletic Commission Trust Fund; collection and disposition of moneys.-There is creat­ed a State Athletic Commission Trust Fund. All fees , fines , forfeitures , and other moneys collected under the provisions of this chapter shall be paid by the commis­sion to the State Treasurer who, after the expenses of the commission are paid, shall deposit them in the trust fund to be used for the administration and operation of the commission and to enforce the laws and rules under

its jurisdiction. In the event the balance in the trust fund exceeds $250,000, any excess of that amount shall be deposited in the General Revenue Fund .

Hlstory.-ss. 2, 4, ch. 84-246; s. 1, ch . 88-132. 1Note.-Expires October 1, 1994, pursuant to s. 4, ch. 84-246, and is scheduled

for review pursuant to s. 11 .61 in advance of that date.

550.011 550.012 550.04 550.041

550.042 550.051

550.08

550.081

550.082

550.083

550.0831 550.09 550.095 550.10

550.16

550.262

550.2636 550.265

550.29 550.33 550.35

550.355

550.40

550.41

550.42 550.43

550.45 550.46

CHAPTER 550

DOGRACING AND HORSERACING

Fixing dates for racing. Additional operating days. Racing meetings authorized; restrictions. Minors attending the Breeders' Cup Meet or

the Breeders' Crown Meet; restrictions. Minors attending horseraces; restrictions. Minors attending greyhound dogracing; re­

strictions. Maximum length of race meeting; additional

operating days. Restrictions on permits for horseracing or

sulky or harness racing. Special allocation of periods of operation of

certain dogracing tracks; additional days. Dogracing ; periods of operation generally;

exceptions. Dogracing; racing periods. Payment of daily license fee and taxes. Additional taxes. Occupational licenses of racetrack employ­

ees; fees ; denial , suspension, and revoca­tion of license; penalties and fines.

Pari-mutuel pool authorized within track en­closure; commissions ; capital improve­ment withholdings; breaks ; penalty for purchasing part of a pari-mutuel pool for or through another in specified circum­stances.

Horseracing; minimum purse requirement, Florida breeders' and owners ' awards.

Breeders ' Crown Meet. Quarter horse racing ; Quarter Horse Adviso-

ry Council. Reallocation of racing dates. Quarter horse racing ; substitutions. Transmission of racing and jai alai informa-

tion. Simulcasting facil ity; licensing, operating ,

and wagering provisions. Policy of the Legislature to authorize sum­

mer thoroughbred horse racing . Summer thoroughbred horse racing period;

additional days for charitable and scholar­ship purposes.

Summer thoroughbred racing; tax. Annual license; summer thoroughbred rac­

ing period. Allocation or reallocation of racing days. Summer thoroughbred racing period, appli­

cation of this chapter.

1178

s. 550.011 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 550.012

550.4904 Summer thoroughbred racing dates; excep­tions to beginning and ending period .

550.52 Florida thoroughbred racing; certain permits; operating days.

550.011 Fixing dates for racing.-(1) The Florida Pari-mutuel Commission shall hear

and approve the dates for racing in any county where one or more horse tracks or one or more dog tracks are seeking to race and hold ratified permits upon which any track can operate in any county, apportioning the dates to the several tracks in such counties as provided by law. However, where only one licensed dog track is lo­cated in a county, that track may operate 105 days dur­ing the racing season at the option of the dog track. The commission shall not delegate this function to any sub­ordinate officer or division of the Department of Busi­ness Regulation .

(2) Except as otherwise provided in this chapter, each permitholder shall request days of operation, which request shall include the number of scheduled performances within each day of operation, by January 15 of each year; and the Florida Pari-mutuel Commis­sion shall consider and take action on each request no later than March 15 of each year. The Division of Pari­mutuel Wagering shall establish rules to allow a permit­holder to conduct more than one performance in an op­eration day and may limit such extra performances to specified days of the week, weeks of the year, or times of day, provided the number of extra performances shall not exceed 54. If the Florida Pari-mutuel Commission does not take action on the request for days of operation and number of performances by March 15 in any year, then the days that are requested that are not in conflict with the operating days of another permitholder within 50 air miles shall be automatically awarded . Notwith­standing any other provision of this chapter, the Florida Pari-mutuel Commission shall allow an extra perform­ance, if otherwise authorized, to be run as a charity or scholarship performance. When a charity or scholarship performance is conducted as a matinee performance, the Florida Pari-mutuel Commission may authorize the permitholder to conduct the evening performance of that operation day as a regular performance in addition to the regular operating days authorized in this section.

History.-s. 2. ch. 14832, 1931; s. 2, ch. 17276, 1935; CGL 1936 Supp. 4151(50); s. 1, ch. 22072, 1943; s. 1, ch . 24348, 1947; s. 2, ch. 71-98; s. 138, ch. 73-333; s. 5, ch. 79-4; s. 1, ch. 80- 57; s. 2, ch. 88-346.

Note.-Former s. 550.02(1 ).

1550.012 Additional operating days.-(1) The Legislature finds that a degree of flexibility

in the process of authorizing days of operation for pari­mutuel permitholders will further the public interest by allowing for rational determinations of the number of authorized days that take into account competitive, eco­nomic, and fiscal factors. The purpose of this section is to authorize the Florida Pari-mutuel Commission, sub­ject to the guidelines contained in this section, to pro­vide recommendations to the Legislature for additional days of operation in such a flexible and rational manner.

(2) In addition to its other powers and duties, the commission may hear the request of any permitholder licensed pursuant to this chapter or chapter 551 for up

to 105 days of operation in addition to those authorized by law, provided that such requests must be submitted to the commission by October 15 of each year. In consid­ering such requests , the commission shall conduct pub­lic hearings. The commission shall submit a report of its findings with recommendations to the Legislature by February 1 of the following year. In determining whether to recommend the granting of such additional operating days, the commission shall consider:

(a) The impact of the requested additional days on the handle, attendance, and income of permitholders within a 50-mile radius of the requesting permitholder;

(b) The similarities and dissimilarities of competing permitholders within a 50-mile radius of the requesting permitholder;

(c) The impact of the requested additional days on state revenues generated by the pari-mutuel industry; and

(d) The impact on the division as it relates to the divi­sion 's operating budget and manpower resources.

(3) Any permitholder seeking additional operating days shall submit a request for such days to the com­mission by October 15 of each year. The request shall contain the following information:

(a) The number of additional days and perform­ances requested ;

(b) Projected increase in handle and attendance as a result of such extra days and performances;

(c) Projected increase in state taxes and revenues as a result of such extra days and performances; and

(d) Any other pertinent information as required by di­vision rule.

(4) The division shall review all requests for addition­al operating days and shall make recommendations to the commission regarding such days. The division may contract with accountants, economists, attorneys, and other persons as may be required to determine the re­quired economic and fiscal impacts of the requested ad­ditional days. To ensure that the requests for additional operating days are reviewed in a timely manner by the division, it is exempt from the provisions of s. 287.057 with regard to contracts awarded to review or determine the economic and fiscal impacts of the requested addi­tional days. However, in awarding such contracts, the di­vision shall consider the cost and the ability and re­sources of the individual or firm to perform the review or study in a competent and timely manner.

(5)(a) Each request for additional operating days shall be accompanied by an application fee to be depos­ited into the Pari-mutuel Wagering Trust Fund.

(b) The division is authorized to charge the permit­holder any anticipated costs incurred by the division in determining whether to grant or deny applications by a permitholder for additional operating days.

(c) The division may, by rule, determine the manner of payment of its anticipated costs and the procedure for filing applications in conjunction with payments of said costs .

(d) The division shall furnish to the applicant an item­ized statement of actual costs incurred during the inves­tigation .

1179

s. 550.012 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 550.081

(e) In the event there are unused funds at the con­clusion of such investigation , such funds shall be re­turned to the applicant within 60 days thereafter.

(f) In the event actual costs of investigation exceed anticipated costs , the division shall assess the applicant those moneys necessary to recover all actual costs.

(6) The commission shall consider and make final recommendations to the Legislature on each request for additional operating days no later than February 1 of each year.

(7) The division shall adopt rules to implement the provisions of this section .

History.-s. 1, ch. 87-38: s. 3. ch. 88-346. 1Note.-Section 20, ch. 88-346, provides that ' those pari-mutuel permitholders

who requested additional operating days pursuant to section 550.Q1 2, Florida Stat· utes, may operate such days as recommended by the Florida Pari-mutuel Commis· sion in its January 28, 1988, report to the Legislature, as supplemented by the Florida Pari- mutuel Commission's findings of February 16, 1988, as amended, and as more specifically supported by the minutes of the Florida Pari-mutuel Commission meet· ing on January 20, 1988. Such additional operating days shall be annually awarded to such permitholders by the Florida Pari- mutuel Commission.M The referenced ma­terials may be accessed through the Bureau of Administrative Code and Laws, Divi· sion of Elections, Office of the Secretary of State.

550.04 Racing meetings authorized; restrictions.­Any person desiring to operate a racetrack in this state may, subject to the provisions of this chapter, hold and conduct one or more racing meetings at such track each year . For purposes of computation of tax on handle as specified in ss. 550.09(3)(d) and 551 .06(3) the term "pre­ceding racing season," in counties lying wholly east of the St. Johns River, south of an east-west line from Ma­tanzas Inlet to said river, and north of latitude 28°35', shall be deemed to consist of the first 105 evening per­formances conducted during the preceding calendar year, plus all matinees conducted through the date of the 1 05th evening performance. No minors except jock­ey apprentices, exercise boys, and grooms shall be per­mitted to attend said races or to be employed in any manner by the track except as provided by this chapter. No dogracing shall be permitted on Sunday; however, nothing in this chapter shall be construed to prohibit the use of any dogracing plant or facility for the conducting of "hound dog derbies" or "mutt derbies" from being used on one Sunday during each racing season by any charitable , civic, or nonprofit organization for the pur­pose of conducting "hound dog derbies" or "mutt der­bies" where only dogs other than those usually used in dogracing (greyhounds) are permitted to race and where adults and minors may participate as dog owners or spectators; but during such racing events betting and gambling and the sale or use of alcoholic beverages shall be strictly and absolutely prohibited .

History.-s. 4, ch. 14832,1931: s. 4, ch. 17276, 1935: CGL 1936 Supp. 41 51(52): ss. 1·, 3, ch. 21636, 1943: ss. 2, 3, ch. 22072, 1943: s. 1, ch. 22599, 1945: s. 1, ch. 24360, s. 1, ch. 23862, 1947: s. 2, ch . 57-180: s. 9, ch. 59-406: s. 2, ch. 86-3: s. 3, ch. 87-406: s. 4, ch. 88- 346. cf.-s. 1.01 ' Minor" defined.

550.041 Minors attending the Breeders' Cup Meet or the Breeders' Crown Meet; restrictions.-

(1 ) A minor, when accompanied by one or both par­ents or by his natural guardian, may be permitted to at­tend the Breeders ' Cup Meet or the Breeders ' Crown Meet, under the conditions and at the times specified by the host permitholder conducting the 3- day meet.

(2) No person under the age of 18 attending the Breeders ' Cup Meet or the Breeders ' Crown Meet shall

be' permitted to place a wager, and the presence of mi­nors within wagering areas is prohibited.

History.- s. 2, ch. 87- 406: s. 1, ch. 88-1 20.

550.042 Minors attending horseraces; restrictions. (1) A minor, when accompanied by one or both par­

ents or by his natural guardian , may be permitted to at­tend horseraces, under the conditions and at the times specified by each permitholder conducting the race meeting .

(2) No P.erson under the age of 18 shall be permitted to place a wager at any horserace establishment where pari-mutuel wagering is permitted , and the presence of minors within wagering areas is prohibited .

History.-s. 1, ch. 88- 64.

550.051 Minors attending greyhound dogracing; restrictions.-

(1) A minor, when accompanied by one or both par­ents or by his natural guardian, may be permitted to at­tend greyhound dogracing , under the conditions and at the times specified by each permitholder conducting the race meeting.

(2) No person under the age of 18 shall be permitted to place a wager at any dog racetrack establishment where pari-mutuel wagering is permitted , and the pres­ence of minors within wagering areas is prohibited .

History.-s. 1, ch. 88-1 28.

550.08 Maximum length of race meeting; additional operating days.-

(1) Except as provided in this chapter, no license shall be granted to any person or to any racetrack for a meet or meeting in any county to extend longer than an aggregate of 90 racing days for thoroughbred horse rac­ing, 120 days for quarter horse racing, 120 days for har­ness horse racing , and 105 days for dogracing in any racing season .

(2) With respect to dogracing permitholders only in any county of the state where there is only one dograc­ing permitholder and no other active pari-mutuel permit­holder within a radius of 50 miles, that permitholder may apply for and shall be granted up to 50 operating days, including not more than 25 matinee performances, in ad­dition to those days authorized in this chapter.

(3) Any other provision of law to the contrary not­withstanding , in any county where there are only three pari-mutuel permitholders operating under valid out­standing permits issued by the Division of Pari-mutuel Wagering, one of whom is a jai alai permitholder and two of whom are greyhound permitholders, the greyhound permitholders may apply for and shall be granted up to 50 days of operation in addition to the 105 regular days of operation already permitted.

Hlstory.-s. 8, ch. 14832, 1931: CGL 1936 Supp. 4151 (56): s. 2, ch. 21636, 1943: ss. 1, 2, ch. 25258, 1949: s. 2, ch. 61- 119: s. 1, ch. 63-315; s. 1, ch. 70-226; ss. 1, 2, ch. 71-98; s. 10, ch. 79-4; s. 10, ch. 82-1 49; s. 3, ch. 83-56; s. 1, ch. 84-96; s. 13, ch. 84-282: s. 8, ch. 85-117; s. 2, ch. 87-38; s. 5, ch. 88- 346.

550.081 Restrictions on permits for horseracing or sulky or harness racing.- The Division of Pari-mutuel Wagering is prohibited from granting any permit, and there shall be no election in any county for the ratifica­tion or rejection of any permit, to conduct horseracing or sulky or harness racing at a location in an area in

1180

s. 550.081 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 550.09

which there are three horse racetracks located within 100 air miles of each other. However, permits issued pri­or to May 21, 1968, and permits for summer thorough­bred horse racing and quarter horse racing shall not be affected by this section.

History.-ss. 1- 6, ch. 23728, 1947; s. 11 , ch. 25035, 1949; s. 1, ch. 69-14 ; s. 2, ch. 70-226; ss. 1, 2, ch . 71-98; ss. 7, 12, ch. 75-43; ss. 10, 22, ch. 77-167 ; s. 2, ch. 79-300; ss. 2, 21, ch . 80-57; s. 22, ch. 88- 346.

550.082 Special allocation of periods of operation of certain dogracing tracks; additional days.-

(1) Where there are three or more dog racing tracks operating under valid outstanding permits, issued by the Division of Pari-mutuel Wagering, located within a radius of 35 miles of each other, one of such permithold­ers within said area shall be permitted , at its option , but shall not be required, during the period beginning July 1 and ending the first Monday of September following, both dates inclusive, of any year, to conduct upon dates of its choice not more than 50 days of its aggregate num­ber of operating days allowed by s. 550.08; provided that where two or more of such permittees apply for rac­ing dates, as herein provided, the Florida Pari-mutuel Commission shall designate the permittee entitled to conduct such racing during such 50-day period, and the remaining number of said aggregate days under s. 550.08 shall be granted to and utilized by such permit­tee within the period provided in s. 550.04.

(2) This section shall be cumulative and shall not be construed as repealing any other provisions of law and shall not be construed as permitting or allowing any per­mitholder to operate for a period of time in excess of the number of days now provided by law.

(3) Notwithstanding the provisions of subsection (2), any dog racing permitholder located in any county where there are only two pari-mutuel permits, one of which is a jai alai permit, in existence for the conduct of pari­mutuel wagering within a 35-mile radius of each other, shall be entitled to operate up to 105 additional days each year including up to 54 matinee performances.

History.-ss. 1, 3, ch. 59-417; s. 2, ch. 71-98; s. 11 , ch. 79-4; s. 3, ch . 87- 38; ss. 6, 24, ch. 88-346.

550.083 Dogracing; periods of operation generally; exceptions.-Owners of valid outstanding permits for dogracing in this state may hold race meetings at any time they choose during the "racing season" for the ag­gregate number of racing days fixed and permitted by law and subject to the approval of the Florida Pari­mutuel Commission, except that no racing shall be con­ducted on Sunday. The words "racing season" as used herein mean that period of time extending from Septem­ber 5 of each year through September 4 of the following year, commencing with September 5, 1973.

Hlstory.-ss. 1, 2. ch. 61-509; s. 1, ch. 69- 250; ss. 1, 2, ch. 71-98; s. 1, ch. 73-23; s. 12, ch. 79- 4; s. 7, ch. 88-346.

550.0831 Dogracing; racing periods.-(1) Any pari-mutuel permitholder conducting dog­

racing in 1977 and thereafter in a county having only one such racetrack may conduct dograce meets or meet­ings upon the days and dates of such permitholder's choice, except that racing shall not be conducted on Sunday, not to exceed the total of 105 racing days in each racing year plus charity and scholarship days.

(2) Notwithstanding any other provision of this chap­ter, any dogracing permitholder whose total handle in fiscal year 1982-1983 was less than $25 million and whose racetrack is within 75 miles of a dogracing track in any other state may operate for an additional 20 days each racing season. Such additional 20-day period shall not be available if the permit is transferred in any man­ner, either directly or indirectly, including by any change in stock, partnership shares, or other form of ownership of any entity holding the permit , except by probate or guardianship proceedings or by transfer of shares of stock to family members without payment of consider­ation, for a period of 5 years from July 1, 1984.

(3) Notwithstanding any other provision of this chap­ter, any dogracing permitholder located in any area of the state wherein there exists only one dogracing per­mitholder, whose racetrack is located more than 75 miles away from any other pari-mutuel permitholder and who during its 1986 fiscal year reported a handle in ex­cess of $40 million, shall, in addition to the 105 regular days of operation permitted by law, be entitled to oper­ate up to an additional105 days, including not more than 54 additional matinees.

History.-s. 1, ch. 78-319; s. 1, ch. 84- 199; s. 4, ch. 87-38; s. 24, ch . 88-346.

550.09 Payment of daily license fee and taxes.­(1) DAILY LICENSE FEE.-Every person engaged in

the business of conducting race meetings under this chapter, hereinafter referred to as the "permitholder," "li­censee, " or "permittee," shall pay to the Division of Pari­mutuel Wagering, for the use of the division, a daily li­cense fee of $1 00 for each horserace and $80 for each dograce conducted at a racetrack licensed under this chapter, which sum shall be deposited with the Treasur­er to the credit of the operating trust fund of the division, which hereinafter shall be referred to as the "Pari-mutuel Wagering Trust Fund"; however, any racetrack which had an average handle per performance of less than $100,000 for the preceding racing season shall pay a daily license fee of $50 for each race conducted.

(2) ADMISSION TAX.-An admission tax equal to 15 percent of the admission charge for entrance to the per­mitholder's facility and grandstand area, or 10 cents, whichever is greater, is imposed on each person attend­ing a horserace or dograce. The permitholder shall be responsible for the collection of the admission tax. An admission tax shall be imposed on any free passes or complimentary cards issued to guests by permitholders and shall be equal to the tax imposed on the regular and usual admission charge for entrance to the permithold­er's facility and grandstand area. With the consent of the division, a permitholder may issue tax-free passes to its officers, officials, and employees or other persons actu­ally engaged in working at the racetrack, including ac­credited press representatives such as reporters and editors, and may also issue tax-free passes to other per­mitholders for the use of their officers and officials. The permitholder shall file with the division a list of all per­sons to whom tax-free passes are issued.

(3) TAX ON HANDLE.-Each permitholder shall pay a tax on contributions to pari-mutuel pools , the aggre­gate of which is hereinafter referred to as "handle," on races conducted by the permitholder. The tax shall be

1181

- - - - - ------------------s. 550.09 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 550.10

imposed daily and shall be based on the total contribu­tions to all pari-mutuel pools conducted during the daily performance. In the event that a permitholder is author­ized by the Florida Pari-mutuel Commission to conduct and does conduct more than one performance daily, the tax shall be imposed on each performance separately. A "performance" is defined as a series of races conduct­ed consecutively under a single admission charge.

(a) The tax on handle for thoroughbred horse racing , harness horse racing, and quarter horse racing shall be 3.3 percent of the handle in excess of $300,000 for each performance per day, except as provided in paragraphs (b) and (c) .

(b) Except as provided in paragraph (c), the tax on handle for thoroughbred horse racing conducted by a permitholder from January 8 through March 6 shall be 3.3 percent of the handle in excess of $175,000 for each performance per day.

(c) The tax on handle for any horse track where the average daily handle on June 4, 1980, is less than $400,000 shall be 3.3 percent of the handle in excess of $500,000 for each performance per day.

(d) The tax on handle for dogracing shall be 7.6 per­cent of the handle in excess of $25,000 for each perform­ance per day. However, when the handle for the preced­ing racing season is less than $30 million and $15 million or more, then the tax shall be paid on the handle in ex­cess of $40,000 for each performance per day, and when the handle for the preceding racing season is less than $15 million , then the tax shall be paid on the handle in excess of $50,000 for each performance per day.

(4) BREAKS TAX.-Each permitholder conducting dogracing shall pay a tax equal to the breaks. The "breaks" represents that portion of each pari-mutuel pool which is not redistributed to the contributors or withheld by the permitholder as commission and is fur­ther defined in s. 550.16.

(5) SURTAX ON ADDITIONAL TAKEOUT.-(a) In addition to any other taxes levied pursuant to

this chapter, a permitholder conducting greyhound rac­ing is subject to a surtax which shall be levied at the rate of 50 percent and be imposed upon any sums withheld pursuant to s. 550.162(3)(b).

(b) In addition to any other taxes levied pursuant to this chapter, a permitholder conducting harness racing is subject to a surtax which shall be levied at the rate of 50 percent and be imposed upon any sums withheld pursuant to s. 550.16(2)(a)2.

(6) PAYMENT AND DISPOSITION OF FEES AND TAXES.-Payment for the admission tax, tax on handle, and the breaks tax imposed by this section shall be paid to the Division of Pari-mutuel Wagering. The division shall deposit these sums with the Treasurer, one-half being credited to the Pari-mutuel Tax Collection Trust Fund, hereby established, and one-half being credited to the General Revenue Fund. The surtax imposed by subsection (5) shall be paid to the Division of Pari­mutuel Wagering, and the division shall deposit these sums with the Treasurer for deposit in the General Reve­nue Fund . The permitholder shall remit to the Division of Pari-mutuel Wagering payment for the daily license fee , the admission tax, the tax on handle, the breaks tax, and the surtax by the fifth day of each calendar month for all

taxes imposed and collected during the preceding cal­endar month . Such payments shall be accompanied by a report under oath showing the total of all admissions, the pari-mutuel wagering activities for the preceding calendar month, and such other information as may be prescribed by the division.

(7) PENAL TIES.-(a) The failure of any permitholder to make pay­

ments as prescribed in subsection (6) is a violation of this section, and the permitholder may be subjected by the division to a civil penalty of up to $1 ,000 for each day the tax payment is not remitted. All penalties imposed and collected shall be deposited in the General Revenue Fund . If a permitholder fails to pay penalties imposed by order of the division under this subsection, the division may suspend or revoke the license of the permitholder, cancel the permit of the permitholder, or deny issuance of any further license or permit to the permitholder.

(b) In addition to the civil penalty prescribed in para­graph (a) , any willful or wanton failure by any permithold­er to make payments of the daily license fee, admission tax, tax on handle, breaks tax, or surtax constitutes suffi­cient grounds for the Division of Pari-mutuel Wagering to suspend or revoke the license of the permitholder, to cancel the permit of the permitholder, or to deny issu­ance of any further license or permit to the permitholder.

Hlatory.-s. 9, ch. 14832, 1931 : s. 8, ch. 17276, 1935: CGL 1936 Supp. 4151(57); s. 3, ch . 59-406; s. 2, ch. 71-98; ss. 17, 22, ch. 77-167: s. 3, ch. 79-300: ss. 3, 21 , ch. 80- 57; s. 7, ch. 84-96: s. 5, ch. 87-38: s. 8, ch. 88-346.

550.095 Additional taxes.-[Repealed by s. 23, ch. 88-346.]

550.10 Occupational licenses of racetrack employ­ees; fees; denial, suspension, and revocation of li­cense; penalties and fines.-

(1) Every person connected with a racetrack shall purchase from the Division of Pari-mutuel Wagering an annual occupational license for each specified job per­formed which license shall be valid for 1 year. The first $200,000 collected pursuant to this section each fiscal year shall be deposited into the Pari-mutuel Wagering Trust Fund. The division shall deposit all other collec­tions for occupational licenses into the Pari-mutuel Tax Collection Trust Fund. The license shall expire on July 1 of each year. In the event that the division determines that it is in the best interest of the division and persons connected with racetracks, the division may issue a li­cense valid for one season at one racetrack but may not make that determination apply to any person who ob­jects to such determination . In any event, the season li­cense fee shall be equal to the annual occupational li­cense fee. Any person may, at his option and pursuant to the rules promulgated by the division, purchase an occupational license valid for a period of 3 years provid­ed the purchaser of the license pays the full occupation­al license fee for each of the years for which the license is purchased at the time the 3-year license is requested. The occupational license shall be valid during its speci­fied term at any pari-mutuel facility. The scheduled an­nual license fees are as follows :

(a) Contractual concessionaires with permitholders: $150.

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s. 550.10 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 550.16

(b) Professional persons such as owners, trainers, veterinarians, doctors, nurses, officials, and supervisors of all departments: $40.

(c) Jockeys, apprentice jockeys, jockey agents, har­ness drivers, and jai alai players: $40.

(d) Permitholder employees , concession employ­ees, grooms, exercise persons, hot-walkers, miscella­neous stable help, platers, and all others not specifically provided: $10.

(2) It is unlawful for any person to take part in or offi­ciate in any way or to serve in any capacity at any pari­mutuel facility without first having secured a license and paid the occupational license fee.

(3)(a) The division may deny a license to or revoke a license of any person who has been refused a license by any other state racing commission or racing authori­ty; provided the state racing commission or racing au­thority of such other state extends to the Division of Pari-mutuel Wagering reciprocal courtesy to maintain the disciplinary control.

(b) The Division of Pari-mutuel Wagering may deny, suspend, revoke, or place conditions or restrictions on any occupational license when the applicant for or hold­er thereof has violated the provisions of this chapter, chapter 551, or the rules and regulations of the division governing the conduct of persons connected with the racetracks. In addition, the division may deny any occu­pational license when the applicant for such license is not of good moral character. If any occupational license expires by division rule while administrative charges are pending against the license, the proceedings against the license shall continue to conclusion as if the license were still in effect. If an occupational license will expire by division rule during the period of a suspension the di­vision intends to impose, or if a license would have ex­pired but for pending administrative charges and the oc­cupational licensee is found to be in violation of any of the charges, the license may be revoked and a time peri­od of license ineligibility may be declared. The division may bring administrative charges against any person not holding a current license for violations of statutes or rules which occurred while such person held an occupa­tional license, and the division may declare such person ineligible to hold a license for a period of time. The divi­sion may impose a civil fine of up to $1 ,000 for each viola­tion of the rules of the division in addition to or in lieu of a suspension or a revocation provided for in this section. In addition to any other penalty provided by law, the divi­sion may exclude from all pari-mutuel facilities in this state, for a period not to exceed the period of suspen­sion, revocation, or ineligibility, any person whose occu­pational license application has been denied by the divi­sion , who has been declared ineligible to hold an occu­pational license, or whose occupational license has been suspended or revoked by the division.

History.-s. 98, ch. 14832, 1931 ; s. 9, ch. 17276, 1935; CGL 1936 Supp. 4151(58); s. 7, ch. 22858, 1945; s. 4, ch. 59-406; s. 1, ch. 67-565; s. 37, ch. 69-353; s. 2, ch. 71 - 98; s. 4, ch. 80- 57; s. 2, ch. 81 - 132; s. 3, ch. 82-149; s. 4, ch. 83-56; s. 129, ch. 83-218; s. 7, ch. 84-282; s. 4, ch. 87-406; s. 9, ch. 88-346.

550.16 Pari-mutuel pool authorized within track enclosure; commissions; capital improvement with­holdings; breaks; penalty for purchasing part of a pari-

mutuel pool for or through another in specified circum­stances.-

(1) The sale of tickets or other evidences showing an interest in or a contribution to a pari-mutuel pool is per­mitted within the enclosure of any horse racetrack and dog racetrack licensed and conducted under this law but not elsewhere in this state except as is provided in chapter 551 . The sale and purchase of tickets or other evidences showing an interest in or a contribution to pari-mutuel pools in this state shall be under the super­vision of the Division of Pari-mutuel Wagering and shall be done subject to such regulations as the division from time to time prescribes.

(2) The "commission" is the percentage of the contri­butions to pari-mutuel pools which a permitholder is permitted to withhold from the contributions before mak­ing redistribution to the contributors. The permitholder's share of the commission is that portion of the commis­sion which remains after the pari-mutuel tax imposed upon the contributions to the pari-mutuel pool is de­ducted from the commission and paid by the permit­holder. The commission is deducted from all pari­mutuel pools but may be different depending on the type of pari-mutuel pool. For the purpose of this chap­ter, contributions to pari-mutuel pools involving wagers on a single animal in a single race, such as the win pool, the place pool, or the show pool , shall be referred to as "regular wagering," and contributions to all other types of pari-mutuel pools, including, but not limited to , the daily double, perfecta, quiniela, trifecta, or the Big "Q" pools, shall be referred to as "exotic wagering ."

(a)1 . Except as provided in paragraphs (i) and U), the commission which a permitholder who conducts horseracing under the provisions of this chapter may withhold from contributions to pari-mutuel pools shall not exceed 17.6 percent on regular wagering and shall not exceed 19 percent on exotic wagering, except that up to an additional 0.5 percent of the handle on regular wagering and up to an additional1 percent of the handle on exotic wagering may be withheld by the permitholder to be used for capital improvements or to reduce capital improvement debt.

2. A harness racing permitholder may also withhold an additional 1 percent of the handle on any or all exotic wagering to be used for capital improvements or for purses.

(b) For the purposes of this chapter and chapter 551, "capital improvements" means:

1. The amount paid out for new buildings or for per­manent improvements or betterments made to improve the facilities utilized by the permitholder for the conduct of its race meetings; or

2. The amount expended in restoring property or in improving the facility or any part thereof which results in the addition or replacement of a fixed asset.

In general , the amounts referred to as "capital improve­ments" include amounts paid which add to the value, im­prove, or substantially prolong the useful life of the race­track or fronton facility utilized by the permitholder for the conduct of its race meeting. Amounts paid or in­curred for repairs and maintenance of property, interest expense, or lease payments in connection with the capi-

1183

s. 550.16 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 550.262

tal improvements are not capital improvements within the meaning of this section. However, upon mutual agreement between the lessor and lessee of a racetrack or fronton, the lessee may withhold funds authorized in this section for capital improvements to the leased race­track or fronton . ·

(c) For purposes of this chapter and chapter 551, the reduction of capital improvement debt shall include only that debt which is in existence prior to May 1, 1980, and only 50 percent of the additional amount authorized to be withheld shall be used for the reduction of capital improvement debt.

(d) A permitholder withholding additional sums for capital improvements shall be entitled to accumulate these funds provided such accumulation of funds is kept in a separate banking or savings account and is only spent or obligated for capital improvements within 3 years from the first date such funds are accumulated, unless otherwise authorized by the Florida Pari- mutuel Commission.

(e) The permitholder who withholds additional com­mission for capital improvements, as may be authorized in this chapter or in chapter 551, shall be required tore­port under oath such withholding and the purpose for which it is withheld on forms as may be prescribed by the Division of Pari-mutuel Wagering. The Division of Pari-mutuel Wagering shall prescribe reasonable and suitable rules to audit and regulate capital improvement withholdings. Each permitholder and contractor shall certify to the Florida Pari- mutuel Commission that the capital improvement project approved by the commis­sion has been completed, together with proof of ex­penditure by the permitholder. Such sums as are deter­mined by the Florida Pari-mutuel Commission to have been improperly withheld or expended by the permit­holder shall be paid to the General Revenue Fund within 1 0 days from the date of such order by the Florida Pari­mutuel Commission.

(f) The commission which a permitholder who con­ducts dogracing under the provisions of this chapter may withhold from the contributions to pari-mutuel pools shall not exceed 17.6 percent on regular wagering and shall not exceed 18 percent on exotic wagering , ex­cept as provided in s. 550.162.

(g) All amounts authorized to be withheld expressly for capital improvements or for the reduction of capital improvement debt shall be expended solely for that pur­pose as set forth herein, less any federal or state income taxes attributable exclusively to the amounts so with­held .

(h) A capital improvement proposed by a permit­holder licensed under this chapter to a pari-mutuel facil­ity existing on June 23, 1981, which capital improvement requires, pursuant to any municipal ordinance, resolu­tion, or regulation , the qualification or approval of the municipality wherein the permitholder conducts its busi­ness operations, shall receive approval unless the mu­nicipality is able to show that the proposed improvement presents a justifiable and immediate hazard to the health and safety of municipal residents , provided the permitholder pays to the municipality or county the cost of a building permit and provided the capital improve­ment meets the following criteria :

1. The Florida Pari-mutuel Commission approves the project;

2. The improvement does not qualify as a develop­ment of regional impact as defined in s. 380.06; and

3. The improvement is contiguous to or within the existing pari-mutuel facility site. To be contiguous, the site of the improvement shall share a sufficient common boundary with the present pari-mutuel facility to allow full and free access without crossing a public roadway, public waterway, or similar barrier.

(i) In addition to the commission authorized by sub­paragraph (a)1., a permitholder who is authorized to conduct thoroughbred horseracing shall be entitled to withhold an additional 1 percent of the handle on exotic wagering for use as owners ' awards as provided in s. 550.262(6). A permitholder who elects to withhold the additional1 percent for owners ' awards shall be entitled to withhold up to an additional 2 percent of the handle on any or all exotic wagering for use as additional over­night purses.

(j) In addition to the commission authorized by sub­paragraph (a)1 ., a harness racing permitholder or quar­ter horse permitholder shall be entitled to withhold up to an additional 3 percent of the handle on any or all exotic wagering for use as additional overnight purses.

(3) After deducting a commission or license and the "breaks" (hereinafter defined), a pari- mutuel pool shall be redistributed to the contributors.

(4) Redistribution of funds otherwise distributable to the contributors of a pari-mutuel pool shall be a sum equal to the next lowest multiple of 10 on horse races and dograces.

(5) No distribution of a pari- mutuel pool shall be made of the odd cents of any sum otherwise distribu­table, which odd cents shall be known as the "breaks."

(6) The "breaks" shall be known as the difference be­tween the amount contributed to a pari-mutuel pool and the total of the commissions and sums redistributed to the contributors.

(7) No person or corporation shall directly or indirect­ly purchase pari-mutuel tickets or participate in the pur­chase of any part of a pari- mutuel pool for another for hire or for any gratuity, and no person shall purchase any part of a pari-mutuel pool through another wherein he gives or pays directly or indirectly such other person anything of value; and any person who violates this sec­tion is guilty of a misdemeanor of the second degree, punishable as provided in s. 775.082 or s. 775.083.

History.-s. 16, ch. 14832,1931;s. 10, ch.17276, 1935; CGL 1936Supp.4151(74), 8135(6b); ss. 1-6, ch. 20306, 1941 ; ss. 1-6, 9, ch. 21744, 1943; s. 1, ch. 22589, 1945; s. 1, chs. 25257, 26334, 1949; s. 1, ch. 28058, 1953; ss. 1-3, ch. 29694, 1955; s. 2, ch. 61-119; s. 1, ch. 61-516; s. 1, ch. 63-314; s. 1, ch. 69-86; s. 2, ch. 71-98; s. 540, ch. 71-136; s. 1, ch. 71-146; s. 1, ch . 72-129; ss. 1, 6, ch . 75-42; s. 4, ch. 77-166; s. 1, ch. 77-177; ss. 7, 22, ch . 80-57; s. 4, ch. 80-88; s. 1, ch. 81 -132; s. 13, ch. 82-149; s. 5, ch. 83-56; s. 1, ch. 84-68; s. 2, ch. 84-96; s. 10, ch. 88-346. cf.-s. 550.09 Payment of daily license fee and taxes.

550.262 Horseracing; minimum purse requirement, Florida breeders' and owners' awards.-

(1) The purse structure and the availability of breed­er awards are important factors in attracting the entry of well-bred horses in racing meets in this state which in turn helps to produce maximum racing revenues for the state and the counties.

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s. 550.262 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 550.262

(2) Each permitholder conducting a horserace meet shall be required to pay from the commission withheld on pari-mutuel pools a sum for purses in accordance with the type of race performed.

(a) A permitholder conducting a thoroughbred horse race meet under the provisions of this chapter shall pay from the commissions withheld a sum not less than 7.5 percent of all contributions to pari-mutuel pools con­ducted during the race meet as purses.

(b) A permitholder conducting a harness horse race meet under the provisions of this chapter shall pay from the commissions withheld a sum not less than 7.5 per­cent of all contributions to pari-mutuel pools conducted during the race meet as purses.

(c) A permitholder conducting a quarter horse race meet under the provisions of this chapter shall pay from the commissions withheld a sum not less than 6 percent of all contributions to pari-mutuel pools conducted dur­ing the race meet as purses.

In the event that a permitholder fails to pay the minimum purse required by this subsection, the permitholder shall, within 30 days of the end of the meet during which the permitholder underpaid purses, deposit an amount equal to the underpayment into a separate, interest­bearing account; and the total principal and interest shall be used to increase purses during the permithold­er's next meet. In the event a permitholder overpays the minimum purses, the permitholder shall be entitled tore­cover the amount of the overpayment in the permithold­er's next meet.

(3) Each permitholder conducting a thoroughbred race under the provisions of this chapter shall pay a sum equal to the breaks on all pari-mutuel pools conducted during that race for the payment of breeders' and stal­lion awards as authorized in this section. The Florida Thoroughbred Breeders ' Association is authorized tore­ceive these payments from the permitholders and make payments of awards earned. The Florida Thoroughbred Breeders ' Association has the right to withhold up to 10 percent of the permitholder's payments under this sec­tion and under s. 550.263 as a fee for administering the payments of awards. The permitholder shall remit these payments to the Florida Thoroughbred Breeders' Asso­ciation by the fifth day of each calendar month for such sums accruing during the preceding calendar month and shall report such payments to the Division of Pari­mutuel Wagering as prescribed by the division. With the exception of the 10-percent fee for administering the payments, the moneys paid by the permitholders shall be maintained in a separate, interest-bearing account, and such payments together with any interest earned shall be used exclusively for the payment of breeders' awards and stallion awards in accordance with the fol­lowing provisions:

(a) The breeder of each Florida-bred thoroughbred horse winning a thoroughbred horserace shall be enti­tled to an award of up to, but not to exceed, 20 percent of the announced gross purse, including nomination fees, eligibility fees, starting fees, supplementary fees, and moneys added by the sponsor of the race.

(b) The owner or owners of the sire of a Florida-bred thoroughbred horse which wins a stakes race shall be

entitled to a stallion award of up to , but not to exceed, 20 percent of the announced gross purse, including nomination fees, eligibility fees, starting fees, supple­mentary fees , and moneys added by the sponsor of the race.

(c) In order for a breeder of a Florida-bred thorough­bred horse to be eligible to receive a breeder's award, the horse winning the race must have been registered as a Florida-bred horse with the Florida Thoroughbred Breeders' Association, and the Jockey Club certificate for the winning horse must show that the winner has been duly registered as a Florida-bred horse as evi­denced by the seal and proper serial number of the Flori­da Thoroughbred Breeders' Association registry. The Florida Thoroughbred Breeders' Association shall be permitted to charge the registrant a reasonable fee for this verification and registration.

(d) In order for an owner of the sire of a thorough­bred horse winning a stakes race to be eligible to re­ceive a stallion award, the stallion must have been regis­tered with the Florida Thoroughbred Breeders' Associa­tion , and the breeding of the registered Florida- bred horse must have occurred in this state. The stallion must be standing permanently in this state or, if the stallion is dead, must have stood permanently in this state for a period of not less than 1 year immediately prior to its death. The removal of a stallion from this state for any reason, other than exclusively for prescribed medical treatment, shall render the owner or owners of the stal­lion ineligible to receive a stallion award under any cir­cumstances for offspring sired prior to removal; howev­er, if a removed stallion is returned to this state, all off­spring sired subsequent to the return shall make the owner or owners of the stallion eligible for the stallion award but only for those offspring sired subsequent to such return to this state. The Florida Thoroughbred Breeders ' Association shall maintain complete records showing the date the stallion arrived in this state for the first time, whether or not the stallion remained in the state permanently, the location of the stallion, and whether the stallion is still standing in this state and complete records showing awards earned, received, and distributed. The association may charge the owner, owners, or breeder a reasonable fee for this service.

(e) A permitholder conducting a thoroughbred horse race under the provisions of this chapter shall, within 30 days after the end of the race meet during which the race is conducted, certify to the Division of Pari-mutuel Wagering and the Florida Thoroughbred Breeders' As­sociation such information relating to the thoroughbred horses winning a stakes or other horserace at the meet as may be required to determine the eligibility for pay­ment of breeders' awards and stallion awards.

(f) The Florida Thoroughbred Breeders' Association shall maintain complete records showing the starters and winners in all races conducted at thoroughbred tracks in this state; shall maintain complete records showing awards earned, received, and distributed; and may charge the owner, owners, or breeder a reasonable fee for this service.

(g) The Florida Thoroughbred Breeders ' Association shall annually establish a uniform rate and procedure for the payment of breeders ' and stallion awards and shall

1185

s. 550.262 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 550.262

make breeders ' and stallion award payments in strict compliance with the established uniform rate and proce­dure. The plan may set a cap on winnings and may limit, exclude, or defer payments to certain classes of races, such as the Florida stallion stakes races, in order to as­sure that there are adequate revenues to meet the pro­posed uniform rate. Priority shall be placed upon impos­ing such restrictions in lieu of allowing the uniform rate to be less than 15 percent of the total purse payment. The uniform rate procedure shall be approved by the Florida Pari-mutuel Commission before implementation. In the absence of an approved plan and procedure, the authorized rate for breeders' and stallion awards shall be 15 percent of the announced gross purse for each race. Such purse shall include nomination fees , eligibility fees , starting fees, supplementary fees , and moneys added by the sponsor of the race. In the event that the funds in the account for payment of breeders ' and stal­lion awards are not sufficient to meet all earned breed­ers' and stallion awards, those breeders and stallion owners not receiving payments shall have first call on any subsequent receipts in that or any subsequent year.

(h) The Florida Thoroughbred Breeders' Association shall keep accurate records showing receipts and dis­bursements of such payments and shall annually file a full and complete report to the Division of Pari-mutuel Wagering reflecting such receipts and disbursements and the sums withheld for administration. The Division of Pari-mutuel Wagering may audit the records and ac­counts of the Florida Thoroughbred Breeders' Associa­tion to determine that payments have been made to eli­gible breeders and stallion owners in accordance with the provisions of this section.

(i) In the event that the Florida Pari-mutuel Com­mission finds that the Florida Thoroughbred Breeders ' Association has not complied with any provision of this section, the commission may order the association to cease and desist from receiving funds and administer­ing funds received under this section and under s. 550.263. In the event that the commission enters such an order, the permitholder shall make the payments authorized in this section and s. 550.263 to the Division of Pari-mutuel Wagering for deposit into the Pari-mutuel Wagering Trust Fund; and any funds in the Florida Thor­oughbred Breeders' Association account shall be imme­diately paid to the Division of Pari-mutuel Wagering for deposit to the Pari-mutuel Wagering Trust Fund . The Florida Pari-mutuel Commission shall authorize pay­ment from these funds to any breeder or stallion owner entitled to an award which had not been previously paid by the Florida Thoroughbred Breeders ' Association in accordance with the applicable rate .

(4) Each permitholder conducting a harness horse race under the provisions of this chapter shall pay a sum equal to the breaks on all pari-mutuel pools conducted during that race for the payment of breeders' awards, stallion awards, and stallion stakes and for additional ex­penditures as authorized in this section. The Florida Standardbred Breeders and Owners Association is authorized to receive these payments from the permit­holders and make payments as authorized in this sub­section. The Florida Standardbred Breeders and Own­ers Association has the right to withhold up to 10 per-

cent of the permitholder's payments under this section and under s. 550.263 as a fee for administering these payments. The permitholder shall remit these payments to the Florida Standardbred Breeders and Owners Asso­ciation by the fifth day of each calendar month for such sums accruing during the preceding calendar month and shall report such payments to the Division of Pari­mutuel Wagering as prescribed by the division. With the exception of the 1 0-percent fee for administering the payments and the use of the moneys authorized by paragraph U) the moneys paid by the permitholders shall be maintained in a separate, interest-bearing account; and such payments together with any interest earned shall be allocated for the payment of breeders' awards, stallion awards, stallion stakes, additional purses, and prizes for, and the general promotion of owning and breeding of, Florida-bred standardbred horses. Pay­ment of breeders ' awards and stallion awards shall be made in accordance with the following provisions:

(a) The breeder of each Florida-bred standardbred horse winning a harness horse race shall be entitled to an award of up to, but not to exceed, 20 percent of the announced gross purse, including nomination fees, eligi­bility fees , starting fees, supplementary fees, and mon­eys added by the sponsor of the race.

(b) The owner or owners of the sire of a Florida-bred standardbred horse which wins a stakes race shall be entitled to a stallion award of up to , but not to exceed, 20 percent of the announced gross purse, including nomination fees , eligibility fees , starting fees, supple­mentary fees, and moneys added by the sponsor of the race.

(c) In order for a breeder of a Florida-bred standard­bred horse to be eligible to receive a breeder's award, the horse winning the race must have been registered as a Florida-bred horse with the Florida Standardbred Breeders and Owners Association and a registration certificate under seal for the winning horse must show that the winner has been duly registered as a Florida­bred horse as evidenced by the seal and proper serial number of the United States Trotting Association regis­try. The Florida Standardbred Breeders and Owners As­sociation shall be permitted to charge the registrant a reasonable fee for this verification and registration.

(d) In order for an owner of the sire of a standardbred horse winning a stakes race to be eligible to receive a stallion award, the stallion must have been registered with the Florida Standardbred Breeders and Owners As­sociation, and the breeding of the registered Florida­bred horse must have occurred in this state. The stallion must be standing permanently in this state or, if the stal­lion is dead, must have stood permanently in this state for a period of not less than 1 year immediately prior to its death . The removal of a stallion from this state for any reason, other than exclusively for prescribed medical treatment, shall render the owner or the owners of the stallion ineligible to receive a stallion award under any circumstances for offspring sired prior to removal ; how­ever, if a removed stallion is returned to this state, all off­spring sired subsequent to the return shall make the owner or owners of the stallion eligible for the stallion award but only for those offspring sired subsequent to such return to this state. The Florida Standardbred

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s. 550.262 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 550.262

Breeders and Owners Association shall maintain com­plete records showing the date the stallion arrived in this state for the first time, whether or not the stallion re­mained in the state permanently, the location of the stal­lion, and whether the stallion is still standing in this state and complete records showing awards earned, re­ceived, and distributed. The association may charge the owner, owners, or breeder a reasonable fee for this ser­vice.

(e) A permitholder conducting a harness horse race under the provisions of this chapter shall, within 30 days after the end of the race meet during which the race is conducted, certify to the Division of Pari-mutuel Wager­ing and the Florida Standardbred Breeders and Owners Association such information relating to the horse win­ning a stakes or other horserace at the meet as may be required to determine the eligibility for payment of breeders' awards and stallion awards.

(f) The Florida Standardbred Breeders and Owners Association shall maintain complete records showing the starters and winners in all races conducted at har­ness horse race tracks in this state; shall maintain com­plete records showing awards earned, received, and distributed; and may charge the owner, owners, or breeder a reasonable fee for this service.

{g) The Florida Standardbred Breeders and Owners Association shall annually establish a uniform rate and procedure for the payment of breeders' awards, stallion awards, stallion stakes, additional purses, and prizes for, and for the general promotion of owning and breed­ing of, Florida-bred standardbred horses and shall make award payments and allocations in strict compli­ance with the established uniform rate and procedure. The plan may set a cap on winnings, and may limit, ex­clude, or defer payments to certain classes of races, such as the Florida Breeders' stakes races, in order to assure that there are adequate revenues to meet the proposed uniform rate. Priority shall be placed on impos­ing such restrictions in lieu of allowing the uniform rate allocated to payment of breeder and stallion awards to be less than 15 percent of the total purse payment. The uniform rate and procedure shall be approved by the Florida Pari-mutuel Commission before implementation. In the absence of an approved plan and procedure, the authorized rate for breeders' and stallion awards shall be 15 percent of the announced gross purse for each race. Such purse shall include nomination fees, eligibility fees, starting fees, supplementary fees, and moneys added by the sponsor of the race. In the event that the funds in the account for payment of breeders' and stal­lion awards is not sufficient to meet all earned breeders' and stallion awards, those breeders and stallion owners not receiving payments shall have first call on any sub­sequent receipts in that or any subsequent year.

(h) The Florida Standardbred Breeders and Owners Association shall keep accurate records showing re­ceipts and disbursements of such payments and shall annually file a full and complete report to the Division of Pari-mutuel Wagering reflecting such receipts and dis­bursements and the sums withheld for administration. The Division of Pari-mutuel Wagering may audit the rec­ords and accounts of the Florida Standardbred Breed­ers and Owners Association to determine that payments

have been made to eligible breeders, stallion owners, and owners of Florida-bred standardbred horses in ac­cordance with the provisions of this section.

(i) In the event that the Florida Pari-mutuel Com­mission finds that the Florida Standardbred Breeders and Owners Association has not complied with any pro­vision of this section, the commission may order the as­sociation to cease and desist from receiving funds and administering funds received under this section and un­der s. 550.263. In the event that the commission enters such an order, the permitholder shall make the pay­ments authorized in this section and s. 550.263 to the Division of Pari-mutuel Wagering for deposit into the Pari-mutuel Wagering Trust Fund; and any funds in the Florida Standardbred Breeders and Owners Association account shall be immediately paid to the Division of Pari-mutuel Wagering for deposit to the Pari-mutuel Wagering Trust Fund. The Florida Pari-mutuel Commis­sion shall authorize payment from these funds to any breeder, stallion owner, or owner of a Florida-bred stan­dardbred horse entitled to an award which had not been previously paid by the Florida Standardbred Breeders and Owners Association in accordance with the applica­ble rate.

U) The board of directors of the Florida Standard­bred Breeders and Owners Association may authorize the release of up to 25 percent of the funds available for breeders' awards, stallion awards, stallion stakes, addi­tional purses, and prizes for, and for the general promo­tion of owning and breeding of, Florida-bred standard­bred horses to be used for purses for, and promotion of, Florida-bred standardbred horses at race meetings at which there is no pari-mutuel wagering unless, and to the extent that, such release would render the funds available for such awards insufficient to pay the breed­ers' and stallion awards earned pursuant to the annual plan of the association. Any such funds so released and used for purses shall not be considered to be an "an­nounced gross purse" as that term is used in paragraphs (a) and (b), and no breeders' or stallion awards, stallion stakes, or owner awards shall be required to be paid for standardbred horses winning races in meetings at which there is no pari-mutuel wagering. The amount of purses to be paid from funds so released and the meets eligible to receive such funds for purses shall be ap­proved by the board of directors of the Florida Standard­bred Breeders and Owners Association.

(5)(a) Except as provided in subsections (7) and (8), each permitholder conducting a quarter horse race meet under the provisions of this chapter shall pay a sum equal to the breaks plus a sum equal to 1 percent of all pari-mutuel pools conducted during that race for supplementing and augmenting purses and prizes and for the general promotion of owning and breeding of rac­ing quarter horses in this state as authorized in this sec­tion. The Florida Quarter Horse Breeders and Owners Association is authorized to receive these payments from the permitholders and make payments as author­ized in this subsection. The Florida Quarter Horse Breeders and Owners Association, Inc., hereinafter re­ferred to in this chapter and this act as the Florida Quar­ter Horse Breeders and Owners Association, has the right to withhold up to 10 percent of the permitholder's

1187

s. 550.262 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 550.262

payments under this section and under s. 550.263 as a fee for administering these payments . The permitholder shall remit these payments to the Florida Quarter Horse Breeders and Owners Association by the fifth day of each calendar month for such sums accruing during the preceding calendar month and shall report such pay­ments to the Division of Pari-mutuel Wagering as pre­scribed by the division. With the exception of the 10 per­cent fee for administering the payments, the moneys paid by the permitholders shall be maintained in a sepa­rate , interest-bearing account.

(b) The Florida Quarter Horse Breeders and Owners Association shall use these funds solely for supplement­ing and augmenting purses and prizes and for the gen­eral promotion of owning and breeding of racing quarter horses in this state.

(c) In order for an owner or breeder of a Florida-bred quarter horse to be eligible to receive an award, the horse winning a race must have been registered as a Florida-bred horse with the Florida Quarter Horse Breeders and Owners Association and a registration certificate under seal for the winning horse must show that the winning horse has been duly registered prior to the race as a Florida-bred horse as evidenced by the seal and proper serial number of the Florida Quarter Horse Breeders and Owners Association registry. The Department of Agriculture and Consumer Services is authorized to assist the association in maintaining this registry. The Florida Quarter Horse Breeders and Own­ers Association shall be permitted to charge the regis­trant a reasonable fee for this verification and registra­tion . Any person who registers unqualified horses or mis­represents information in any way shall be denied any future participation in breeders' awards and all horses misrepresented will no longer be deemed to be Florida­bred .

(d) A permitholder conducting a quarter horse race under a quarter horse permit under the provisions of this chapter shall, within 30 days after the end of the race meet during which the race is conducted, certify to the Division of Pari-mutuel Wagering and the Florida Quar­ter Horse Breeders and Owners Association such infor­mation relating to the horse winning a stakes or other horserace at the meet as may be required to determine the eligibility for payment of breeders' awards under this section.

(e) The Florida Quarter Horse Breeders and Owners Association shall maintain complete records showing the starters and winners in all quarter horse races con­ducted under quarter horse permits in this state; shall maintain complete records showing awards earned, re­ceived, and distributed; and may charge the owner, owners, or breeder a reasonable fee for this service.

(f) The Florida Quarter Horse Breeders and Owners Association shall keep accurate records showing re­ceipts and disbursements of payments made under this section and shall annually file a full and complete report to the Division of Pari-mutuel Wagering reflecting such receipts and disbursements and the sums withheld for administration . The Division of Pari-mutuel Wagering may audit the records and accounts of the Florida Quar­ter Horse Breeders and Owners Association to deter-

mine that payments have been made in accordance with the provisions of this section.

(g) The Florida Quarter Horse Breeders and Owners Association shall annually establish a plan for supple­menting and augmenting purses and prizes and for the general promotion of owning and breeding Florida-bred racing quarter horses and shall make award payments and allocations in strict compliance with the annual plan. The annual plan shall be approved by the Florida Pari­mutuel Commission before implementation. In the event that the funds in the account for payment of purses and prizes are not sufficient to meet all purses and prizes to be awarded, those breeders and owners not receiving payments shall have first call on any subsequent re­ceipts in that or any subsequent year.

(h) In the event that the Florida Pari-mutuel Com­mission finds that the Florida Quarter Horse Breeders and Owners Association has not complied with any pro­vision of this section , the commission may order the as­sociation to cease and desist from receiving funds and administering funds received under this section and s. 550.263. In the event that the commission enters such an order, the permitholder shall make the payments authorized in this section and s. 550.263 to the Division of Pari-mutuel Wagering for deposit into the Pari-mutuel 1Wagering Trust Fund, and any funds in the Florida Quarter Horse Breeders and Owners Association ac­count shall be immediately paid to the Division of Pari­mutuel Wagering for deposit to the Pari-mutuel Wager­ing Trust Fund . The Florida Pari-mutuel Commission shall authorize payment from these funds to any breeder or owner of a quarter horse entitled to an award which had not been previously paid by the Florida Quarter Horse Breeders and Owners Association in accordance with this section.

(6)(a) The additional takeout authorized for owners ' awards pursuant to s. 550.16(2)(i) shall be used for the payment of awards to owners of registered Florida-bred horses placing first in a claiming race of not less than $25,000, an allowance race, a maiden special race, or a stakes race in which the announced purse, exclusive of entry and starting fees and added moneys, does not ex­ceed $50,000. The $25,000 minimum on a claiming race is not applicable to a race conducted by a permitholder whose average daily handle was less than $500,000 as of July 1, 1983.

(b) The permitholder shall determine for each quali­fied race the amount of the owners' award for which a registered Florida-bred horse will be eligible. The amount of the available owners' award shall be estab­lished in the same manner in which purses are estab­lished and shall be published in the condition book for the period during which the race is to be conducted. No single award shall exceed 50 percent of the gross purse for the race won .

(c) In the event that the moneys generated by the additional takeout for owners' awards during the meet exceed the owners ' awards earned during the meet, the excess funds shall be held in a separate interest­bearing account, and the total interest and principal shall be used to increase the owners' awards during the permitholder's next meet.

1188

s. 550.262 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 550.29

(d) Breeders' awards authorized by subsections (3) and (4) shall not be paid on owners ' awards.

(?)(a) Each permitholder that conducts race meets under the provisions of this chapter and runs Appaloosa races shall pay to the Division of Pari-mutuel Wagering a sum equal to the breaks plus a sum equal to 1 percent of the total contributions to each pari-mutuel pool con­ducted on each Appaloosa race. Such payments shall be remitted to the division by the fifth day of each calen­dar month for sums accruing during the preceding cal­endar month.

(b) The division shall deposit these collections to the credit of the Florida Quarter Horse Racing Promotion Trust Fund in a special account to be known as the "Flor­ida Appaloosa Racing Promotion Fund." The Depart­ment of Agriculture and Consumer Services shall admin­ister the funds and adopt suitable and reasonable rules for the administration thereof. The moneys in the Florida Appaloosa Racing Promotion Fund shall be allocated solely for supplementing and augmenting purses and prizes and for the general promotion of owning and breeding of racing Appaloosas in this state; and such moneys shall not be used to defray any expense of the Department of Agriculture and Consumer Services in the administration of this chapter, except that the mon­eys generated by Appaloosa registration fees received pursuant to s. 550.266 may be used as provided in para­graph (5)(b) of that section.

(8)(a) Each permitholder that conducts race meets under the provisions of this chapter and runs Arabian horse races shall pay to the Division of Pari-mutuel Wa­gering a sum equal to the breaks plus a sum equal to 1 percent of the total contributions to each pari-mutuel pool conducted on each Arabian horse race. Such pay­ments shall be remitted to the division by the fifth day of each calendar month for sums accruing during the preceding calendar month.

(b) The division shall deposit these collections to the credit of the Florida Quarter Horse Racing Promotion Trust Fund in a special account to be known as the "Flor­ida Arabian Horse Racing Promotion Fund." The Depart­ment of Agriculture and Consumer Services shall admin­ister the funds and adopt suitable and reasonable rules for the administration thereof. The moneys in the Florida Arabian Horse Racing Promotion Fund shall be allocated solely for supplementing and augmenting purses and prizes and for the general promotion of owning and breeding of racing Arabian horses in this state; and such moneys shall not be used to defray any expense of the Department of Agriculture and Consumer Services in the administration of this chapter, except that the mon­eys generated by Arabian horse registration fees re­ceived pursuant to s. 550.267 may be used as provided in paragraph (5)(b) of that section.

History.-s. 2, ch. 71-146; s. 2, ch. 72-129; ss. 13, 22. ch. 77-167; s. 3, ch. 79-300; ss. 9, 21 , ch. 80-57; s. 1, ch. 84-59; s. 2, ch . 84-68; ss. 2, 10, ch . 84-282; s. 101 , ch. 85-81; s. 3, ch . 85-117; s. 1, ch. 87-51; s. 72, ch. 87-225; s. 11 , ch. 88-346.

1 Note.-The word "Wagering~ was inserted by the editors to conform references to the trust fund in paragraph (5)(h).

550.2636 Breeders' Crown Meet.-(1) Notwithstanding any provision of this chapter to

the contrary, there is hereby created a special harness race meet which shall be designated as the "Breeders'

Crown Meet" and which shall be hosted by the Florida harness permitholder selected by the Hambletonian So­ciety, Inc., to conduct such meet. Upon the selection of a Florida host for the meet and upon application by the selected permitholder, the Division of Pari-mutuel Wa­gering shall issue a license to the selected permitholder to operate the meet. The meet may be conducted during a racing season in which the permitholder selected by the Hambletonian Society, Inc., is not otherwise author­ized to conduct a racing meet.

(2) Notwithstanding any provision of s. 550.09, the permitholder licensed to conduct the Breeders ' Crown Meet shall pay no taxes on the handle on any day on which a Breeders' Crown race is conducted .

(3) The Breeders' Crown Meet permitholder shall re­ceive a credit against the taxes otherwise due and pay­able under s. 550.09 generated during said permithold­er's next ensuing regular harness racing meet. This credit shall be in an amount not to exceed $150,000 and shall be utilized by the permitholder solely to supple­ment purses or pay fees for receipt of the Breeders ' Crown Meet or race during the Breeders ' Crown Meet. The determination of the amount to be credited shall be made by the Florida Pari-mutuel Commission upon ap­plication of said permitholder prior to the issuance of the license in subsection (1 ).

(4) In addition to the credit authorized in subsection (3) , the Breeders' Crown Meet permitholder shall receive a credit against the taxes, otherwise due and payable under s. 550.09, generated during said permitholder's next ensuing regular harness racing meet. This credit shall be in an amount not to exceed $150,000 and shall be utilized by the permitholder only for such capital im­provements and extraordinary expenses as may be nec­essary for operation of the meet. The determination of the amount to be credited shall be made by the commis­sion upon application of said permitholder prior to the is­suance of the license under subsection (1 ).

(5) The Breeders ' Crown Meet permitholder shall be exempt from the purse requirements of s. 550.262 for all races in which the purse is paid or supplied by the Ham­bleton ian Society, Inc.

(6) Notwithstanding any provision of s. 550.35 which may be construed as an impediment to the implementa­tion of this section, the permitholder licensed to conduct the Breeders' Crown Meet shall be exempt from the purse requirements of s. 550.35(2)(a) for all races simul­cast during the Breeders' Crown Meet.

(7) No Breeders' Crown Meet shall exceed 3 days in any calendar year.

(8) The provisions of this section shall prevail over any conflicting provisions of this chapter.

History.-s. 2, ch . 88-120.

550.265 Quarter horse racing; Quarter Horse Advi­sory Councii.-[Repealed by s. 2, ch . 88-124.]

550.29 Reallocation of racing dates.-The Florida Pari-mutuel Commission shall have the right to reallo­cate or reassign to any other licensed horseracing track any racing dates previously allocated or assigned to a licensed horseracing track when said racing dates have been vacated, abandoned , or will not be used for any

1189

s. 550.29 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 550.33

reason whatsoever. Hlstory.-s. 1, ch. 20859, 1941 ; s. 1, ch. 71-98; s. 15, ch. 79-4; s. 12, ch. 88-346.

550.33 Quarter horse racing; substitutions.-(1) Subject to all the applicable provisions of this

chapter, any person possessing the qualifications pre­scribed in this chapter may apply to the Division of Pari­mutuel Wagering for a permit to conduct quarter horse race meetings and racing under this chapter. The appli­cant must demonstrate that the location or locations where the permit will be used are available for such use and that he has the financial ability to satisfy the reason­ably anticipated operational expenses of the first racing year following final issuance of the permit. If the racing facility is already built, the application must contain a statement, with reasonable supporting evidence, that the permit will be used for quarter horse racing within 1 year of the date on which it is granted; if the facility is not already built, the application must contain a state­ment, with reasonable supporting evidence, that sub­stantial construction will be started within 1 year of the issuance of the permit. After receipt of an application, the division shall convene to consider and act upon per­mits applied for. The division shall disapprove an appli­cation if it fails to meet the requirements of this section and this chapter. Upon each application filed and ap­proved, a permit shall be issued setting forth the name of the applicant and a statement showing qualifications of the applicant to conduct racing under this chapter. If there has been no previous favorable referendum on a pari-mutuel facility within a county, then, before a quar­ter horse permit may be issued by the division, a referen­dum ratified by a majority of the electors in the county shall be required on the question of allowing quarter horse races within that county; but if there is an extraor­dinary vote of the board of county commissioners of that county to allow quarter horse racing, the provision for a referendum will not apply.

(2)(a) After a quarter horse racing permit has been granted by the division, the Department of Business Regulation shall grant to the lawful holder of such per­mit, subject to the conditions hereof, a license to con­duct quarter horse racing under this chapter; and the Florida Pari-mutuel Commission shall fix annually the time when, place where, and number of days upon which racing may be conducted by such quarter horse racing permitholder. After the first license has been is­sued to the holder of a permit for quarter horse racing, all subsequent annual applications for a license by a per­mitholder shall be accompanied by proof in such form as the division may require that the permitholder still possesses all the qualifications prescribed by this chap­ter. The Division of Pari-mutuel Wagering may revoke any permit or license hereunder upon the willful violation by the licensee of any of the provisions of this chapter or any rule or regulation issued by the division under the provisions of this chapter. The division may also revoke any permit issued after July 1, 1981, for failure to con­duct a quarter horse meet pursuant to the license issued unless the failure is due to circumstances beyond the permitholder's control.

(b) In lieu of the suspension or revocation of a li­cense, the division may impose a civil penalty against

any licensee for a violation of this chapter, chapter 551 , or any rule or regulation promulgated by the division. No penalty so imposed shall exceed $1,000 for each count or separate offense, and all penalties imposed and col­lected shall be deposited with the Treasurer to the credit of the General Revenue Fund.

(3) Any quarter horse racing permitholder is author­ized to conduct quarter horse races throughout the year. Such races may be continuous or portioned at various periods of time, not to exceed 120 days annually. These races may be performed only at any one or more li­censed tracks and may be conducted by day or night or part by day and part by night. The operator of any li­censed racetrack is authorized to lease such track to any quarter horse racing permitholder for the conduct of quarter horse racing under this chapter. The permithold­er conducting a quarter horse race meet shall pay the daily license fee, the admission tax, the tax on breaks, and the tax on pari-mutuel handle provided in s. 550.09 and shall be subject to all penalties and sanctions pro­vided in s. 550.09(7).

(4) Sections 550.05, 550.06, 550.07, 550.17, and 550.18 are hereby declared to be inapplicable to quarter horse racing as permitted herein; and all other provi­sions of this chapter apply to, govern, and control such racing, and the same shall be conducted in compliance therewith.

(5) Quarter horses participating in such races shall be duly registered by the American Quarter Horse Asso­ciation, and before each race such horses shall be ex­amined and declared in fit condition by some qualified person designated by the division.

(6) Any quarter horse racing days permitted under this section shall be in addition to any other racing per­mitted under the license issued the track where such quarter horse racing is conducted.

(?)(a) Any quarter horse racing permitholder operat­ing under a valid permit issued by the Division of Pari­mutuel Wagering is authorized to substitute other races of other breeds of horses which are, respectively, regis­tered with the American Paint Horse Association, Ap­paloosa Horse Club, Arabian Horse Registry of America, Jockey Club, Palomino Horse Breeders of America, or United States Trotting Association, for no more than 50 percent of the quarter horse races daily. However, any quarter horse racing permitholder which elects to oper­ate under this substitution provision and which ran breeds of horses registered with the American Quarter Horse Association, the Appaloosa Horse Club, or the Arabian Horse Registry of America during 1983, must, prior to making such substitution, first run a number of races equal to the number of races of these three breeds which were run in 1983; such races under a quar­ter horse permit may be comprised of any of the three breeds, but must be comprised of no less than 50 per­cent of horses registered with the American Quarter Horse Association.

(b) Any permittee operating within an area of 50 air miles of a licensed thoroughbred track shall not substi­tute thoroughbred races under this section while a thor­oughbred horserace meet is in progress within that 50 miles; provided, however, any permittee operating with­in an area of 125 air miles of a licensed thoroughbred

1190

s. 550.33 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 550.35

track shall not substitute live thoroughbred races under this section while a thoroughbred permittee who pays taxes under s. 550.09(3)(c), is conducting a thorough­bred meet within that 125 miles. These mileage restric­tions do not apply to any permittee which holds a non­wagering permit issued pursuant to s. 550.50. No races comprised of thoroughbred horses under this section registered with the Jockey Club shall be permitted dur­ing the period beginning September 1 and ending on January 5 of each year in any county where there is one or more licensed dog track conducting a race meet. Nothing contained herein shall be interpreted in any manner to affect the competitive award of matinee per­formances to jai alai frontons or dog tracks in opposition to races comprised of thoroughbred horses registered with the Jockey Club under this section.

(8) A quarter horse racing permitholder is authorized to conduct no more than 12 races per racing day.

(9) No quarter horse permit issued pursuant to this section shall be eligible for transfer or conversion to an­other type of pari-mutuel operation.

(1 0) Any nonprofit corporation, including, but not lim­ited to, an agricultural cooperative marketing associa­tion, organized and incorporated under the laws of this state may apply for a quarter horse racing permit and operate racing meets under such permit provided all pari-mutuel taxes and fees applicable to such racing are paid by the corporation. However, insofar as its pari­mutuel operations are concerned, the corporation shall be treated as a corporation for profit and shall be subject to taxation on all property used and profits earned in connection with its pari-mutuel operations.

History.-s. 1, ch. 25354, 1949; s. 1, ch. 59-492; s. 1, ch. 69-50; s. 3, ch. 70-226; ss. 1, 2, ch. 71-98; s. 2, ch. 74-19; ss. 1, 2, ch. 74-178; s. 1, ch. 75-142; s. 1, ch. 76-257; s. 1, ch. 77-174; s. 9, ch. 78-95; s. 18, ch. 79-4; s. 12, ch. 80-57; s. 1, ch. 81-154; s. 130, ch. 83-218; s. 14, ch. 84-282; s. 102, ch. 85-81 ; s. 4, ch. 86-3; s. 13, ch. 88-346.

550.35 Transmission of racing and jai alai informa­tion.-

(1 )(a) It is unlawful for any person to transmit by any means whatsoever racing information to any person or to relay the same to any person by word of mouth, by signal, or by use of telephone, telegraph, radio, or any other means when the information is knowingly used or intended to be used for illegal gambling purposes or in furtherance of such illegal gambling.

(b) Paragraph (a) shall be deemed an exercise of the police power of the state for the protection of the public welfare, health, peace, safety, and morals of the people of the state, and all of the provisions herein shall be liber­ally construed for the accomplishment of this purpose.

(c) A person who violates the provisions of para­graph (a) is guilty of a felony of the third degree, punish­able as provided in s. 775.082, s. 775.083, or s. 775.084.

(2)(a) Any horsetrack, dogtrack, or fronton licensed under this chapter or under chapter 551 may transmit broadcasts of races or games conducted at the enclo­sure of the licensee to locations outside this state. All broadcasts of horseraces transmitted to locations out­side this state shall also comply with the provisions of the Interstate Horseracing Act of 1978, 92 Stat. 1811, 15 U.S.C. s. 3001 et seq. A horsetrack is not required to make payments to horse owners or any horseman's as-

sociation in excess of 50 percent of the net proceeds paid to the track by tracks or entities accepting legal­ized wagers, less direct expenses required to transmit such horseraces.

(b) Any horsetrack licensed under this chapter may receive broadcasts of horseraces conducted at other horse racetracks located outside this state at the race­track enclosure of the licensee during its racing meet. All broadcasts of horseraces received from locations outside the state shall comply with the provisions of the Interstate Horseracing Act of 1978, 92 Stat. 1811, 15 U.S.C. s. 3001 et seq. All forms of pari-mutuel wagering shall be allowed on races broadcast under this para­graph, and all money wagered by patrons on such races shall be computed in the amount of money wagered each racing performance for purposes of taxation under s. 550.09. Sections 550.162 and 550.262 do not apply to any money wagered on races broadcast under this para­graph. Payments to horse owners or any horseman's as­sociation are limited to 50 percent of the net proceeds received by the licensee accepting wagers on races broadcast under this paragraph after deducting from the takeout all tax payments made to the state and all payments made to the racing association or other per­son for transmission of races broadcast under this para­graph, and any direct expenses required of the licensee for the transmission of races broadcast under this para­graph.

(c) Any dogtrack or fronton licensed under this chapter or under chapter 551 may receive broadcasts of dograces or jai alai games conducted at other tracks or frontons located outside the state at the track enclo­sure of the licensee during its operational meeting. All forms of pari-mutuel wagering shall be allowed on dog­races or jai alai games broadcast under this paragraph. All money wagered by patrons on dograces broadcast under this paragraph shall be computed in the amount of money wagered each performance for purposes of taxation under s. 550.09, and all money wagered by pa­trons on jai alai games broadcast under this paragraph shall be computed in the amount of money wagered each performance for purposes of taxation under s. 551.06.

(3) No pari-mutuel facility in this state is permitted to broadcast any type of race or game not permitted at that facility under its current license.

(4) At least 80 percent of the races or games on which wagers are taken during each performance shall be live races or games conducted at the pari-mutuel fa­cility in this state, except when a permitholder is unable to fill the daily race or game card or when otherwise authorized by the Division of Pari-mutuel Wagering .

(5) No racetrack or fronton shall make any payment to any patron on any pari-mutuel ticket purchased on any race or game transmitted pursuant to this section until the stewards, judges, or panel of judges or other similarly constituted body at the racetrack or fronton where the race or game originates has confirmed the race or game as official.

(6) The entry and participation for a purse or any oth­er prize of any racing animal by the owner of the animal and the jockey or driver is tantamount to acceptance of such purse or prize as full and complete remuneration

1191

s. 550.35 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 550.355

and payment for such entry and participation, including the broadcast of such event, except as otherwise pro­vided in this section.

(7) For the purposes of this section, the term "broad­cast" means the broadcast, transmission, or exhibition in any medium or manner by means which may include, by way of illustration, but are not limited to, community antenna systems which receive and retransmit televi­sion or radio signals by wire, cable, or otherwise to tele­vision or radio sets and cable origination networks or programmers which transmit programming to communi­ty antenna television or closed-circuit systems by wire , cable, satellite, or otherwise.

(8) To the extent that any rights, privileges, or immu­nities granted to racing associations or frontons under this section conflict with any provisions of any other law or affect any order or rule of the Florida Public Service Commission relating to the regulation of public utilities and the furnishing to others of any communication , wire service, or other similar service or equipment, the rights, privileges, or immunities granted under this section will prevail over such conflicting provisions.

History.-ss. 1-5, ch. 26722, 1951 ; s. 5, ch. 57-180; s. 8, ch. 59-406; s. 1, ch. 63-279; s. 1, ch. 65-52; s. 2, ch. 71-98; s. 545, ch. 71 - 136; s. 1, ch. 84-9; s. 14, ch. 88-346.

550.355 Simulcasting facility; licensing, operating, and wagering provisions.-

(1) For the purposes of this section, the term "simul­casting" means the live broadcasting at one location of events occurring at another location, by the transmittal, retransmittal , reception, and rebroadcast of television or radio signals by wire, cable , satellite, microwave, or oth­er electrical or electronic means for receiving or rebroad­casting such events.

(2) In any county in which there has been issued by the Division of Pari-mutuel Wagering of the Department of Business Regulation, as of January 1, 1987, two quar­ter horse racing permits, neither of which was utilized for racing prior to January 1, 1987, and only one jai alai per­mit, the Division of Pari-mutuel Wagering shall issue not more than one license in any qualifying county for the re­ceipt and display of live thoroughbred horse races by si­mulcasting and for the acceptance of all legally author­ized forms of pari-mutuel wagering on such races which facility may not be located at the premises of any other pari-mutuel wagering permitholder licensed under this chapter and chapter 551 . Such facility shall meet the fol­lowing criteria:

(a) Be a multi-purpose entertainment complex, built, maintained, and managed by the private sector and donated to the citizens of the local community after the recoupment of the investment by the private sector.

(b) Be divided into three levels as follows: 1. The ground level to be an auditorium with a seat-

ing capacity of not less than 1 ,500 people. 2. The second level to feature a restaurant with a

seating capacity of not less than 350 people. 3. The third level to offer private meeting rooms. (3) To be eligible for such license, an applicant must

comply with the provisions of s. 550.181 as though the applicant were an applicant for a pari-mutuel wagering permit , provided that no applicant shall have any inter­est in any other permit. A licensee under this section

may only operate pari-mutuel wagering pools through a thoroughbred horse racetrack licensed under the laws of this state.

(4) A licensee issued a license under this section may receive at its facility broadcasts of thoroughbred horse races conducted at thoroughbred horse race­tracks located inside or outside this state, provided that any out-of-state race may be transmitted only upon ap­proval under the Federal Interstate Horseracing Act and that any wagers placed on out-of-state races must be placed through a Florida thoroughbred permitholder's pari-mutuel pool.

(5) All provisions of this chapter that apply to a thor­oughbred horseracing permitholder that are not incon­sistent with this act, except for s. 550.011, shall also ap­ply to a licensee licensed under this section .

(a) All pari-mutuel wagers placed at the facility of a licensee licensed under the provisions of this section shall be combined with the pari-mutuel pools of the thor­oughbred horseracing permitholder transmitting the horserace. Distribution of the combined pool shall be subject to the same provisions of this chapter as pari­mutuel pools conducted solely by the thoroughbred per­mitholders except that the portion of the pari-mutuel pools that is wagered at the facility of the licensee li­censed under this section is not subject to the provi­sions of this chapter with regard to purse requirements and capital improvement requirements.

(b)1 . Each thoroughbred permitholder contracting with the licensee under this section shall allow such li­censee, on each dollar contributed to the pari-mutuel pools, to withhold from regular wagers the sum of 7 per­cent of the total amount contributed to the licensee's pari-mutuel pool and to withhold from exotic wagers the sum of 8 percent of the total amount contributed to the licensee's pari-mutuel pool which amount withheld shall be compensation for the taking of wagers by the licens­ee.

2. The balance of the authorized takeout shall be distributed in accordance with the provisions of this chapter except that the purse requirements set forth in s. 550.262 shall not apply and thoroughbred permithold­ers shall , after all reasonable and necessary expenses, including the tax on handle levied under s. 550.09, divide the balance as follows: 50 percent to the thoroughbred permitholder; 35 percent to purses; and 15 percent to breeders awards. In addition , the division shall approve by rule a method for the frequency of balancing of pay­ments between a licensee and a thoroughbred permit­holder which payments shall be made at least monthly.

(6) The racing season of a licensee under this sec­tion is a calendar year.

(7) A licensee issued a license under this section may annually renew its license upon application to the Division of Pari-mutuel Wagering , accompanied by proof, in such form as the division may require, that the licensee still possesses all the qualifications required for issuance of such license.

(8) The Division of Pari-mutuel Wagering may re­voke the license of a licensee under this section for the same reasons that it may revoke the permit of a thor­oughbred horse racing permitholder.

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s. 550.355 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 551.06

(9)(a) Any holder of a thoroughbred horse racing permit in this state may contract with the licensee hold­ing a simulcasting facility license under this section to simulcast thoroughbred horse races at the location authorized in the simulcasting facility license.

(b) A licensee under this section or a thoroughbred horse racing permitholder with respect to transmissions to a facility licensed under this section is not subject to the provisions of ss. 550.35(2)-(8), and 550.262.

(10) The Division of Pari-mutuel Wagering shall pro­mulgate rules to implement this section.

History.-s. 13, ch. 87-38; s. 15, ch. 88-346.

550.40 Policy of the Legislature to authorize sum­mer thoroughbred horse racing.-[Repealed by s. 22, ch. 88-346.]

550.41 Summer thoroughbred horse racing period; additional days for charitable and scholarship pur­poses.-[Repealed by s. 22, ch. 88-346.]

550.42 Summer thoroughbred racing; tax.-[Re­pealed by s. 22, ch . 88-346.]

550.43 Annual license; summer thoroughbred rac­ing period.-[Repealed by s. 22, ch. 88-346.]

550.45 Allocation or reallocation of racing days.­[Repealed by s. 22, ch. 88-346.)

550.46 Summer thoroughbred racing period, appli­cation of this chapter.-[Repealed by s. 22, ch. 88-346.]

550.4904 Summer thoroughbred racing dates; ex­ceptions to beginning and ending period.-[Repealed by s. 22, ch. 88-346.]

1550.52 Florida thoroughbred racing; certain per­mits; operating days.-

(1) Each thoroughbred permitholder under whose permit thoroughbred racing was conducted in this state at any time between January 1, 1987, and January 1, 1988, shall annually, effective with the application period commencing December 15, 1988, be entitled to apply for and annually, commencing February 15, 1989, re­ceive thoroughbred racing days and dates as set forth in this section. As regards such permitholders the annu­al thoroughbred racing season shall be from June 1 of any year through May 31 of the following year and shall be known as the "Florida Thoroughbred Racing Season."

(2) Each permitholder referred to in subsection (1) shall annually, during the period commencing on De­cember 15 of each year and ending on January 4 of the following year, beginning December 15, 1988, file in writ­ing with the Division of Pari-mutuel Wagering its appli­cation to conduct one or more thoroughbred racing meetings during the thoroughbred racing season com­mencing on the following June 1st. Each application shall specify the number and dates of all performances which the permitholder intends to conduct during that thoroughbred racing season . On or before February 15 of each year, the division shall issue a license authoriz­ing each permitholder to conduct performances on the

dates specified in its application. Up to March 31 of each year each permitholder may request and shall be grant­ed changes in its authorized performances, but thereaf­ter, as a condition precedent to the validity of its license and its right to retain its permit, each permitholder shall operate the full number of days authorized on each of the dates set forth in its license.

(3) Each thoroughbred permit referred to in subsec­tion (1 ), including , but not limited to, any permit originally issued as a summer thoroughbred horse racing permit, is hereby validated and shall continue in full force and effect.

(4) A permitholder conducting thoroughbred racing that pays taxes under s. 550.09(3)(c) shall be limited to a total of 90 racing days which must be operated be­tween December 1 of each year to May 31 of the follow­ing year.

(5) A thoroughbred racing permitholder may not be­gin any race later than 7 p.m.

(6) No thoroughbred permitholder referred to in sub­section (1) shall be entitled to the tax credits referred to in s. 550.2635(2) unless such permitholder is required to close a bona fide meet consisting in part of no fewer than 10 performances in the 15 days immediately pre­ceding and 10 performances in the 15 days immediately following the Breeders ' Cup Meet conducted within 35 miles of its facility.

History.-s. 16, ch . 88-346. 1 Note.-As created by s. 16, ch. 88-346. Subsection (2) of s. 22, ch. 88-346, pro·

vides that "if any provision of this act or the application thereof to any person or cir· cumstance is held invalid, the invalidity shall not affect other provisions or applica­tions of this act which can be given effect without the invalid provision or application, and to this end the provisions of this act are declared severable, except that if any provision of section 550.52, Florida Statutes. as created by this act, or the application thereof to any person or circumstance is held invalid, the provisions of subsection (1) of this section shall also be held to be invalid and to this end the provisions of subsection (1) are declared to be not severable from the provisions of section 550.52, Florida Statutes, as created by this act, and the sections repealed by subsection (1), together with all standards, criteria, and decisions of any court with respect thereto, shall not be repealed."

551.06

551.115

551.12 551.152

CHAPTER 551

FRONTONS

Daily license fee; admission tax; taxes on han­dle and breaks; surtax.

Minors attending jai alai exhibitions; restric­tions.

Elections; applicability of racetrack law. Additional jai alai days; restrictions.

551.06 Daily license fee; admission tax; taxes on handle and breaks; surtax.-

(1) Every person engaged in conducting exhibitions of the Spanish ball game known as "jai alai" or "pelota" under this chapter, hereinafter referred to as the "permit­holder," "licensee," or "permittee," shall pay to the Divi­sion of Pari-mutuel Wagering for the use of the division a daily license fee of $80 for each jai alai game conduct­ed by the permitholder, which sum shall be deposited with the Treasurer to the credit of the Pari-mutuel Wa­gering Trust Fund; however, any fronton which had an average handle per performance of less than $100,000 for the preceding jai alai season shall pay a daily license fee of $50 for each game conducted.

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s. 551.06 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 551.12

(2) An admission tax equal to 15 percent of the ad­mission charge for entrance to the permitholder's facility and grandstand area or 10 cents, whichever is greater, shall be imposed on each person attending a jai alai per­formance. The permitholder shall be responsible for the collection of the admission tax. An admission tax shall be imposed on any free passes or complimentary cards issued to guests by permitholders and shall be equal to the tax imposed on the regular and usual admission charge for entrance to the permitholder's facility and grandstand area. With the consent of the division, a per­mitholder may issue tax-free passes to its officers, offi­cials , and employees or other persons actually engaged in working at the front on, including accredited press rep­resentatives such as reporters and editors, and may also issue tax-free passes to other permitholders for the use of their officers and officials. A list of all such per­sons to whom tax-free passes are issued shall be filed with the division .

(3) Each permitholder shall pay a tax on contribu­tions to pari-mutuel pools, the aggregate of which is hereinafter referred to as "handle," on games conducted by the permitholder. The tax shall be imposed daily and shall be based on the total contributions to all pari­mutuel pools conducted during the daily performance. In the event that a permitholder is authorized by the Flor­ida Pari-mutuel Commission to conduct more than one performance daily, the tax shall be imposed on each per­formance separately. A "performance" is defined as a se­ries of games conducted consecutively under a single admission charge. The tax on handle for jai alai shall be 7.1 percent of the handle in excess of $25,000 per per­formance per day. However, when the handle for the preceding 1 racing season is less than $30 million and $15 million or more, then the tax shall be paid on the han­dle in excess of $40,000 for each performance per day, and when the handle for the preceding 1racing season is less than $15 million, then the tax shall be paid on the handle in excess of $50,000 for each performance per day.

(4) Each permitholder conducting jai alai perform­ances shall pay a tax equal to the breaks. The "breaks" represents that portion of each pari-mutuel pool which is not redistributed to the contributor or withheld by the permitholder as commission and is further defined ins. 551 .09.

(5) In addition to any other tax levied pursuant to chapter 550 or this chapter, a permitholder is subject to a surtax which shall be levied at the rate of 50 percent and imposed upon any sum withheld pursuant to s. 551.09(2)(b).

(6) Payment for the admission tax , the tax on breaks, and the tax on handle imposed in this section shall be made to the Division of Pari-mutuel Wagering . The division shall deposit these sums with the Treasur­er, with one-half to be credited to the Pari-mutuel Tax Collection Trust Fund and one-half to be credited to the General Revenue Fund. The surtax imposed by subsec­tion (5) shall be paid to the Division of Pari-mutuel Wa­gering , and the division shall deposit these sums with the Treasurer for deposit into the General Revenue Fund.

(7) The permitholder shall remit to the Division of Pari-mutuel Wagering payment for the daily license fee, the admission tax, the tax on handle, the tax on breaks, and the surtax by the fifth day of each calendar month for all taxes imposed and collected during the preceding calendar month. Such payments shall be accompanied by a report under oath showing the total of all admis­sions, the pari-mutuel wagering activities for the pre­ceding calendar month, and such other information as may be prescribed by the division. Failure of any permit­holder to make the payments prescribed is a violation of this section, and the permitholder may be subjected to a civil penalty of up to $1 ,000 for each day the tax pay­ment is not remitted. All penalties imposed and collect­ed shall be deposited to the General Revenue Fund. If a permitholder fails to pay penalties imposed by order of the division under this subsection, the division may suspend or revoke the license of the permitholder, can­cel the permit of the permitholder, or deny issuance of any further license or permit to the permitholder.

(8) In addition to the civil penalty allowed in subsec­tion (7), any willful or wanton failure by any permitholder to make payment of the daily license fee, the admission tax, the tax on handle, the tax on breaks, and the surtax shall constitute sufficient ground for the Division of Pari­mutuel Wagering to suspend or revoke the license of the permitholder, cancel the permit of the permitholder, or deny issuance of any further license or permit to the per­mitholder.

Hlatory.-s. 4, ch . 17074, 1935; CGL 1936 Supp. 4151(358); s. 2, ch. 71-98; s. 19, ch. 80-57; s. 408, ch. 81-259; s. 8, ch. 84-96; s. 8, ch. 87-38; s. 17, ch. 88-346.

•Note.- The word ' racing' appears as enacted by s. 8, ch. 87-38.

551.115 Minors aHending jai alai exhibitions; re­strictions.-

(1) A minor, when accompanied by one or both par­ents or by his natural guardian, may be permitted to at­tend jai alai exhibitions under the conditions and at the times specified by each permitholder conducting the jai alai performance.

(2) No person under the age of 18 shall be permitted to place a wager at any jai alai fronton establishment where pari-mutuel wagering is permitted, and the pres­ence of minors within wagering areas is prohibited.

Hlatory.-s. 2, ch. 88-128.

551.12 Elections; applicability of racetrack law.­No license to construct or operate a fronton for the exhi­bition of jai alai or pelota may be issued until and unless the permit issued by the Division of Pari-mutuel Wager­ing has been ratified by the electors of the county in­volved pursuant to the requirements of s. 550.06, except that this provision does not apply to frontons which have been issued valid permits and licenses to operate prior to June 30, 1959, and which are now in effect. All other pertinent provisions of chapter 550 dealing with the powers, duties, and liabilities of the Division of Pari­mutuel Wagering and of the operators of dogracing tracks; with the location thereof and with the issuance and granting of permits and licenses to conduct dog rac­ing ; and with the petition for the election to revoke li­censes which provisions are not inconsistent with the express provisions of this chapter shall be construed to relate to and govern the division, the operators of any

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s. 551.12 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 553.19

fronton and the location thereof, and the issuance and granting of permits and licenses for the operation of frontons under the provisions of this chapter as fully as if the same were herein expressly set out. However, in no event shall any jai alai fronton permit or license be is­sued to conduct jai alai and pari-mutuel pools at a loca­tion within 50 miles of another location where pari­mutuel pools are conducted under chapter 550 or this chapter, such distance to be measured on a straight line from property line to property line at the points nearest to each other, except that this proviso does not apply to frontons which have been issued valid permits and li­censes to operate prior to June 30, 1959, and which are now in effect. Further, if all or any substantial portion of a fronton is taken by eminent domain, the division may, on application of the holder of the permit and license of such original fronton filed within 2 years after such tak­ing (and in lieu of the original permit and without requir­ing the ratification by the electors of the permit and with­out regard to the foregoing 50-mile limitation), issue a permit and grant licenses to the holder of the permit and license of such original fronton for the operation of a sub­stitute fronton at any location in the same county within 10 miles, measured on a straight line from property line to property line at the points nearest to each other, of the location of the original fronton. Also, the Florida Pari­mutuel Commission may not limit the number of present­ly authorized operation days in any 12-month period for such operators of licensed frontons during the period extending from and including December 1 in each year to and including April10 of the following year. An opera­tion day is a continuous period of 24 hours starting with the beginning of the first game of a public exhibition of jai alai or pelota even though such operation day may start during one calendar day and extend past midnight until 2 a.m. the following calendar day; however, no game may be started later than 1:30 a.m. and before 12 noon on any operation day. No minors except jai alai players' apprentices and ball boys shall be permitted to attend such exhibitions or to be employed in any manner about the operation of frontons, except as provided by this chapter. All laws and parts of laws inconsistent with the express provisions of this chapter are expressly de­clared not to apply to any person engaged in the opera­tion of a fronton, or making wagers or contributing to pools therein, as authorized and conducted under this chapter.

Hiatory.-s. 10, ch. 17074, 1935; CGL 1936Supp. 4151(364); s. 1, ch. 22614, 1945; s. 1, ch. 59-453; s. 1, ch. 69-354; ss. 1, 2, ch. 71-98; s. 1, ch. 78-380; s. 25, ch. 79-4; s. 1, ch. 83-133; s. 3, ch. 88-128.

551.152 Additional jai alai days; restrictions.-Any jai alai permitholder located in any county where there are only two pari-mutuel permits, one of which is a dog­racing permit, in existence for the conduct of pari­mutuel wagering within a 35-mile radius of each other shall be entitled to operate up to 105 additional days each year, including up to 54 matinee performances.

Hlatory.-s. 9, ch. 87-38; ss. 18, 24, ch. 88-346.

CHAPTER 553

BUILDING CONSTRUCTION STANDARDS

PART I

PLUMBING

553.06 State Plumbing Code adopted. 553.12 Counties excepted from this part. 553.13 Counties exempt from provisions of chapter

28181 , Laws of Florida, 1953.

553.06 State Plumbing Code adopted.-(1) The Department of Health and Rehabilitative Ser­

vices is required to develop rules in accordance with chapter 381 which shall be adopted as the State Plumb­ing Code. All installations, repairs, and alterations to plumbing shall be performed in accordance with the pro­visions of the State Plumbing Code.

(2) The use of solder or flux containing more than 0.2 percent lead and lead pipes or pipe fixtures containing more than 8 percent lead is prohibited. This prohibition is applied to the installation or repair of any public water system or any plumbing in a residential or nonresidential facility providing water for human consumption which is connected to a public water system. This prohibition shall not apply to leaded joints necessary for the repair of cast iron pipes. Notwithstanding the provisions of s. 553.11, no county or municipality is exempt from this prohibition.

Hlatory.-s. 6, ch. 26904, 1951 ; ss. 19, 35, ch. 69-106; s. 451, ch. 77-147; s. 1, ch. 88-94.

553.12 Counties excepted from this part.-[Re­pealed by s. 2, ch. 88-94.]

553.13 Counties exempt from provisions of chapter 28181, Laws of Florida, 1953.-[Repealed by s. 2, ch. 88-94.]

PART II

ELECTRICAL CODE

553.19 Adoption of electrical standards.

553.19 Adoption of electrical standards.-For the purpose of establishing minimum electrical standards in this state, the following standards are adopted:

(1) "National Electrical Code 1987," NFPA No. 70-1987, with the exception of Article 210-8, Ground Fault Circuit Protection.

(2) Underwriters' Laboratories, Inc., "Standards for Safety, Electrical Lighting Fixtures, and Portable Lamps," UL 57-1982 and UL 153-1983.

(3) Underwriters' Laboratories, Inc., "Standard for Electric Signs," UL 48-1982.

(4) The provisions of the following which prescribe minimum electrical standards :

(a) NFPA No. 56A-1978, "Inhalation Anesthetics 1978."

1195

s. 553.19 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 553.48

(b) NFPA No. 568-1982, "Respiratory Therapy 1982." (c) NFPA No. 56C-1980, "Laboratories in Health­

related Institutions 1980." (d) NFPA No. 56D-1982, "Hyperbaric Facilities." (e) NFPA No. 56F-1983, "Nonflammable Medical

Gas Systems 1983." (f) NFPA No. 76A-1984, "Essential Electrical Sys­

tems for Health Care Facilities 1984." (5) Chapter 1 OD-29 of the rules and regulations of

the Department of Health and Rehabilitative Services, entitled "Nursing Homes and Related Facilities Licen­sure."

(6) The minimum standards for grounding of porta­ble electric equipment, chapter 8C-27 as recommended by the Industrial Standards Section, Division of Workers' Compensation, Department of Labor and Employment Security.

History.-s. 5, ch. 70-332; s. 1, ch. 72-292; s. 1, ch. 73-283; s. 1, ch. 75- 55; s. 452, ch. 77-147; s. 1, ch. 77-174; s. 1, ch. 78-62; s. 46, ch. 79- 7; s. 79, ch. 79-40; s. 1, ch. 82-15; s. 1, ch. 84-66; s. 1, ch. 84-273; s. 20, ch . 88-149.

PARTV

ACCESSIBILITY BY HANDICAPPED PERSONS

553.48 Accessibility features required of new buildings and renovations; exceptions.

553.48 Accessibility features required of new buildings and renovations; exceptions.-

(1) For the purposes of this part , a "new building" shall be considered to be one which is not under con­struction contract on October 1, 197 4.

(2) All new buildings as defined in this part, and, for purposes of paragraph (m) only, all renovations of pri­vately owned buildings described therein , except those exempted pursuant to subsection (3), which the general public may frequent, live in, or work in shall be made ac­cessible as required in this section:

(a) Where accessibility is required, paths shall be provided for the physically disabled or handicapped and shall be unobstructed and devoid of curbs, stairs, or oth­er abrupt changes in elevation .

(b) Ramps, where provided along such paths, shall slope not more than 1 inch vertically in 12 inches hori­zontally.

(c) Corridors, including such paths, shall be not less than 44 inches between walls, when part of a required means of egress.

(d) Single leaf walk-through swinging doors and one leaf of manually operated multiple-leaf swinging doors shall be not less than 32 inches in width.

(e) All other walk-through openings shall provide not less than 29 inches in clear width .

(f) Accessibility to such buildings shall be provided from rights-of-way and parking areas by means of curb-cuts or ramps, or both , to at least one entrance generally used by the public and from such entrance to elevators, where provided.

(g) Accessibility shall be provided in such buildings at each floor and at ground floor level, except as provid­ed in subsection (3) .

(h) Required restrooms shall be made accessible, except as provided in this subsection , and each shall be

provided with at least one accessible toilet stall comply­ing with the standard set forth in paragraph (1). Access to such restrooms shall be marked by readily visible signs or symbols in all cases where the accessible rest­rooms are not immediately visible from all public areas on each floor.

(i) Restroom vestibules providing screens or a se­ries of doors shall have an unobstructed width of not less than 4 feet and an unobstructed length of not less than 5 feet.

U) Restrooms made accessible to the handicapped shall provide an unobstructed passage 44 inches wide for wheelchairs to approach accessible toilet facilities and a space not less than 5 feet in diameter for 180-degree turns.

(k) Changes in level in excess of 1/2 inch at doorways requiring accessibility shall be ramped.

(I) The mandatory portions of the standard "Making Buildings and Facilities Accessible to and Usable by the Physically Handicapped," of the American National Standards Institute, ANSI A 117.1, except as modified by this part and except as otherwise provided ins . 399.035 relating to the accessibility of elevators to the physically handicapped, are hereby adopted .

(m)1 . All theaters , auditoriums, motion-picture houses, exhibition halls, meeting rooms, and passenger depots shall provide listening systems to ensure listen­ing access to hearing-impaired persons. Such privately owned assembly areas with an occupant load of more than 50 persons and an audio amplification system shall provide a permanent assistive system which meets the standards of the American National Standards Institute. Such assembly areas and spaces used primarily as meeting or conference rooms shall provide either perma­nently installed or portable listening systems; portable systems, if used, may serve more than one room . If the listening system serves only a limited section of the as­sembly area, that section shall be located within !?Q-feet viewing distance of the stage or performing area and shall provide a complete view of the stage or performing area to facilitate lipreading. Acceptable types of listen­ing systems include, but are not limited to , audio induc­tion loops, radio frequency (AM or FM), and infrared transmission .

2. For the purposes of this paragraph, "renovation" is defined as substantial construction representing 50 percent or more of the replacement value of the facility.

(3) The following exceptions shall apply to the ac­cessibility features required of new buildings under this section. However, nothing in this subsection shall be construed to prohibit incorporation of the features re­quired in subsection (2) in any building exempted in this subsection.

(a) In building maintenance and storage areas where only employees have occasion to enter and within which the work cannot reasonably be performed by the handicapped, the provisions of this part need not apply unless such areas provide the only path between areas normally used by the handicapped.

(b) Buildings having accessibility at habitable grade levels where no elevator is provided shall not be re­quired to comply with the provisions of this part at floors above such levels if facilities normally sought and used

1196

s. 553.48 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 553.73

by the public in such buildings are accessible to and us­able by the physically handicapped at such habitable grade levels.

(c) Residential occupancies: Two-story and three­story buildings with less than 49 units , having accessibil­ity at habitable grade levels, shall not be required to comply with the provisions of this part at floors above such levels except where an elevator is provided. Twen­ty-five percent of the total number of living units shall comply with the provisions of this part; provided that ac­cessory facilities such as pools, patios, sauna rooms, recreational buildings, laundry rooms, and similar areas shall comply with the provisions of subsection (2) .

(d) Within living units , hallways having no walk­through openings in the sidewalls may be less than 44 inches wide but shall not be less than 36 inches wide.

(e) Within living units, toilet rooms providing 29-inch clear passage need not comply with the provisions of this section.

(f) Single-family dwellings, condominiums , town­houses, and duplexes shall be exempted from this part.

(g) Handrails shall not be required on ramps 7 feet ooless that are integral with walkways, platforms, court­yards, or other paved areas, where the sides of such ramps are protected by curbs or flared sides .

History.-s. 4, ch. 74-292; s. 2, ch. 75-85; ss. 2, 4, ch . 78-235; s. 3, ch. 78-333; s. 13, ch. 83-1 45; s. 9, ch. 84-273; s. 7, ch. 88-213.

PART VI

STATE MINIMUM BUILDING CODES

553.73 State Minimum Building Codes. 553.77 Specific powers of the board. 553.79 Application .

553.73 State Minimum Building Codes.-(1 )(a) By October 1, 1984, local governments and

state agencies with building construction regulation re­sponsibilities shall adopt a building code which shall cover all types of construction. Such code shall include the provisions of parts I through VII, relating to plumbing, electrical requirements, glass, manufactured buildings, accessibility by handicapped persons, and thermal effi­ciency, and shall be in addition to the requirements set forth in chapter 527, which pertains to liquefied petrole­um gas.

(b) In the event that a special act of the Legislature, passed prior or subsequent to January 1, 1978, places responsibility for building construction regulation in a specified local board or agency, the words "local govern­ment" and "local governing body" as used in this part shall be construed to refer exclusively to such local board or agency.

(2) There is created the State Minimum Building Codes which shall consist of the following nationally rec­ognized model codes:

(a) Standard Building Codes , 1985 edition, with 1986 accumulated revisions , pertaining to building , plumbing, mechanical, and gas, and excluding fire pre­vention;

(b) EPCOT Code, 1982 edition ; (c) One and Two Family Dwelling Code, 1983 edi­

tion, with 1984 accumulated amendments; and (d) The South Florida Building Code, 1983 edition ,

with 1984 accumulated amendments.

Each local government and state agency with building construction regulation responsibilities shall adopt one of the State Minimum Building Codes as its building code, which shall govern the construction, erection, al­teration, repair, or demolition of any building for which the local government or state agency has building con­struction regulation responsibility. If the One and Two Family Dwelling Code is adopted for residential con­struction, then one of the other recognized model codes must be adopted for the regulation of other residential and nonresidential structures.

(3) After January 1, 1978, local governments and state agencies with building construction regulation re­sponsibilities may provide for more stringent require­ments than those specified in the State Minimum Build­ing Codes provided:

(a) The local governing body determines, following a public hearing which has been advertised in a newspa­per of general circulation at least 10 days before the hearing, that there is a need to strengthen the require­ments of the State Minimum Building Codes adopted by such governing body. The determination must be based upon a review of local conditions by the local governing body, which review demonstrates that local conditions justify more stringent requirements than those specified in the State Minimum Building Codes for the protection of life and property.

(b) Such additional requirements are not discrimina­tory against materials, products, or construction tech­niques of demonstrated capabilities.

(c) Paragraphs (a) and (b) apply to the enforcing agency's adoption of more stringent requirements than those specified in the State Minimum Building Codes and to the adoption of building construction-related codes that have the effect of amending building con­struction standards contained in the State Minimum Building Codes. Upon request , the enforcing agency shall provide a person making application for a building permit a listing of all such requirements and codes.

(4) All code requirements in effect in any code en­forcement jurisdiction on January 1, 1978, which are not inferior to the requirements of any model code specified in subsection (2) are presumed to meet the conditions of subsection (3) .

(5) It shall be the responsibility of each municipality and county in the state and of each state agency with statutory authority to regulate building construction to enforce the specific model code of the State Minimum Building Codes adopted by that municipality, county , or agency, in accordance with the provisions of s. 553.80. If such responsibility has been delegated to another unit of government pursuant to s. 553.79(9), the specific model code adopted by the delegate shall apply and be enforced .

(6) The specific model code of the State Minimum Building Codes adopted by a municipality, county, or state agency shall regulate every type of building or

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s. 553.73 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 553.77

structure, wherever it might be situated in the code en­forcement jurisdiction; however, such regulations shall not apply to nonresidential farm buildings on farms; to temporary buildings or sheds used exclusively for con­struction purposes; to mobile homes used as temporary offices, except that the provisions of part V relating to accessibility by handicapped persons shall apply to such mobile homes used as temporary offices; or to any construction exempted under s. 553.80(3) by an en­forcement district or local enforcement agency. The codes may be divided into a number of segments, as de­termined by the municipality, county, or state agency. These segments may be identified as building , mechani­cal , electrical, plumbing, or fire prevention codes or by other titles as are deemed proper. However, the State Minimum Building Codes shall not contain a housing code; nor shall the state interpose in the area of local housing codes, except upon request originating from an enforcement district or local enforcement agency.

(7) The board may periodically amend the State Minimum Building Codes by rule, in accordance with the requirements of chapter 120, consistent with the recom­mendations of the code promulgating organizations .

(8)(a) In the event of a conflict between the applica­ble minimum building code and the applicable minimum firesafety code, it shall be resolved by agreement be­tween the local building code enforcement official and the local fire code enforcement official in favor of the re­quirement of the code which offers the greatest degree of lifesafety or alternatives which would provide an equivalent degree of lifesafety and an equivalent meth­od of construction .

(b) Any decision made by the local fire official and the local building official may be appealed to a local ad­ministrative board designated by the municipality, coun­ty, or special district having firesafety responsibilities . If the decision of the local fire official and the local building official is to apply the provisions of either the applicable minimum building code or the applicable minimum fire­safety code, the board may not alter the decision unless the board determines that the application of such code is not reasonable. If the decision of the local fire official and the local building official is to adopt an alternative to the codes, the local administrative board shall give due regard to the decision rendered by the local officials and may modify that decision if the administrative board adopts a better alternative, taking into consideration all relevant circumstances. In any case in which the local administrative board adopts alternatives to the decision rendered by the local fire official and the local building official , such alternatives shall provide an equivalent de­gree of lifesafety and an equivalent method of construc­tion as the decision rendered by the local officials.

(c) In the event that the local building official and the local fire official are unable to agree on a resolution of the conflict between the building code and the fire code, the local administrative board shall resolve the conflict in favor of the code which offers the greatest degree of lifesafety or alternatives which would provide an equiva­lent degree of lifesafety and an equivalent method of construction.

(d) The local administrative board shall , to the great­est extent possible, be composed of members with ex-

pertise in building construction and firesafety stand­ards.

(e) All decisions of the local building official and local fire official and all decisions of the administrative board shall be in writing and shall be binding upon all persons but shall not limit the authority of the State Fire Marshal pursuant to s. 633.161 . Decisions of general application shall be indexed by building and fire code sections and shall be available for inspection during normal business hours.

Hlstory.-s. 4, ch. 74-167; s. 3, ch. 75-85; s. 1, ch. 77-365; s. 225, ch . 79-400; s. 1, ch. 80- 106; s. 6, ch. 82-197; s. 2, ch . 84-273; s. 1, ch. 65-97; s. 33, ch. 86-191 ; s. 1, ch. 87- 287; s. 1, ch. 88-142.

1553.77 Specific powers of the board.­(1) The board shall: (a) Adopt rules and regulations or amendments

thereto in accordance with the procedures prescribed in chapter 120.

(b) Make a continual study of the operation of the State Minimum Building Codes and other laws relating to the construction of buildings, including manufactured buildings, to ascertain their effect upon the cost of build­ing construction and determine the effectiveness of their provisions.

(c) Upon written application by a private party or a local enforcement agency, issue advisory opinions relat­ing to new technologies, techniques, and materials which have been tested where necessary and found to meet the objectives of the State Minimum Building Codes and the Florida Manufactured Building Act of 1979.

(d) Upon written application by a private party or a local enforcement agency, issue advisory opinions relat­ing to the interpretation, enforcement, administration, or modification by local governments of the State Minimum Building Codes and the Florida Manufactured Building Act of 1979.

(2) Upon written application by a private party or a local enforcement agency, the board may also:

(a) Provide for the testing of materials, devices, and method of construction.

(b) Appoint experts, consultants, technical advisers, and advisory committees for assistance and recommen­dations relating to the State Minimum Building Codes.

(3) The board shall conduct a program to certify building code administration personnel and building in­spection personnel in this state.

(4) With respect to the qualification program for spe­cial inspectors of threshold buildings as required by s. 553.79(5)(c), the board may prescribe initial and annual renewal fees for certification, by rule, in accordance with chapter 120.

(5)(a) Upon written application by a private party, the board shall issue a binding opinion relating to a state agency's interpretation and enforcement of the specific model code adopted by the agency to regulate building construction or relating to the conformity of new technol­ogies, techniques, and materials to the objectives of that model code. The provisions of this paragraph shall not be construed to provide any powers to the board with respect to any decision of the State Board of Edu­cation made pursuant to the provisions of s. 235.26, to the State Fire Marshal made pursuant to the provisions

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s. 553.77 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 553.79

of chapter 633, to the Department of General Services made pursuant to the provisions of s. 255.25, or to any local government decision with respect to construction not subject to a state agency model code.

(b) Upon written applications by private parties or the enforcement agency, the board may issue binding opinions relating to the interpretation of ss. 553.71 (7) and 553.79(5)(a) and (c), (6)(a), (b), (d), and (e), and (7)(a) and (c).

(c) Each opinion issued pursuant to this section shall be rendered in the same manner provided in s. 120.565, relating to declaratory statements.

History.-s. 8, ch. 74-167; s. 4, ch. 75-85; s. 4, ch. 75-111; s. 3, ch. 77-365; s. 4, ch. 78-323; ss. 5, 8, ch. 79-152; ss. 3, 4, ch . 81-7; ss. 1, 4, ch. 82-46; s. 9, ch. 83-160; s. 2, ch. 83-265; s. 2, ch. 84-365; s. 1, ch. 86-135; s. 1, ch . 88-81.

1Note.-Repealed effective October 1, 1991, by s. 1, ch. 82-46, as amended by s. 2, ch. 83-265, and scheduled for review pursuant to s. 11 .611 in advance of that date.

553.79 Application.-(1) After the effective date of the State Minimum

Building Codes adopted as herein provided , it shall be unlawful for any person, firm, or corporation to construct, erect, alter, repair, or demolish any building within this state without first obtaining a permit therefor from the appropriate enforcing agency or from such persons as may, by appropriate resolution or regulation of the en­forcing agency, be delegated authority to issue such permits, upon the payment of such reasonable fees adopted by the enforcing agency. The enforcing agency is empowered to revoke any such permit upon a deter­mination by the agency that the construction, erection, alteration, repair, or demolition of the building for which the permit was issued is in violation of, or not in conform­ity with, the provisions of the State Minimum Building Codes.

(2) After January 1, 1988, no enforcing agency may issue any permit for construction, erection, alteration, re­pair, or demolition until the local building code adminis­trator or inspector, in conjunction with the appropriate firesafety inspector, has reviewed the plans and specifi­cations for such proposal and both officials have found the plans to be in compliance with the applicable State Minimum Building Codes and the applicable firesafety standards as determined by the local authority in ac­cordance with this chapter and chapter 633. Any build­ing or structure which is not subject to a firesafety code and any building or structure which is exempt from the local building permit process shall not be required to have its plans reviewed by the local officials. Industrial construction on sites where design, construction, and firesafety are supervised by appropriate design and in­spection professionals and which contain adequate in­house fire departments and rescue squads is exempt, subject to local government option, from review of plans and inspections, providing owners certify that applica­ble codes and standards have been met and supply ap­propriate approved drawings to local building and fire­safety inspectors. The enforcing agency shall issue a permit to construct, erect, alter, repair, or demolish any building when the plans and specifications for such pro­posal comply with the provisions of the State Minimum Building Codes and the applicable firesafety standards as determined by the local authority in accordance with this chapter and chapter 633.

(3) The State Minimum Building Codes, after the ef­fective date of their adoption pursuant to the provisions of this part, shall supersede all other building construc­tion codes or ordinances in the state, whether at the lo­cal or state level and whether adopted by administrative regulation or by legislative enactment, unless such building construction codes or ordinances are more stringent than the State Minimum Building Codes and the conditions of s. 553.73(3) are met. However, this subsection does not apply to mobile homes as defined by chapter 320. Nothing contained in this subsection shall be construed as nullifying or divesting appropriate state or local agencies of authority to make inspections or to enforce the codes within their respective areas of jurisdiction.

(4) The State Minimum Building Codes, after the ef­fective date of their adoption pursuant to the provisions of this part, may be modified by local governments to re­quire more stringent standards than those specified in the State Minimum Building Codes, provided the condi­tions of s. 553.73(3) are met.

(5)(a) The enforcing agency shall require a special inspector to perform structural inspections on a thresh­old building pursuant to a structural inspection plan pre­pared by the engineer or architect of record. The struc­tural inspection plan must be submitted to the enforcing agency prior to the issuance of a building permit for the construction of a threshold building. The purpose of the structural inspection plan is to provide specific inspec­tion procedures and schedules so that the building can be adequately inspected for compliance with the permit­ted documents. The special inspector shall inspect the shoring and reshoring for conformance with the shoring and reshoring plans submitted to the enforcing agency.

(b) The fee owner of a threshold building shall select and pay all costs of employing a special inspector, but the special inspector shall be responsible to the enforce­ment agency. The inspector shall be a person certified, licensed, or registered under chapter 471 as an engineer or under chapter 481 as an architect.

(c) The board shall , by rule, establish a qualification program for special inspectors and shall compile a list of persons qualified to be special inspectors. Special in­spectors shall not be required to meet standards for qualification other than those established by the board, nor shall the fee owner of a threshold building be prohib­ited from selecting any person qualified by the board to be a special inspector. The architect or engineer of rec­ord may act as the special inspector provided he is on the list of persons qualified to be special inspectors. School boards may utilize employees as special inspec­tors provided such employees are on the list of persons qualified to be special inspectors.

(d) The licensed architect or registered engineer serving as the special inspector shall be permitted to send his duly authorized representative to the job site to perform the necessary inspections provided all re­quired written reports are prepared by and bear the seal of the special inspector and are submitted to the en­forcement agency.

(6) No permit may be issued for any building con­struction, erection, alteration, repair, or addition unless the applicant for such permit provides to the enforcing

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s. 553.79 1988 SUPPLEMENT TO FLORIDA STATUTES 1987 s. 553.79

agency which issues the permit any of the following doc­uments which apply to the construction for which the permit is to be issued:

(a) Electrical documents for any new building or ad­dition which requires an aggregate service capacity of 600 amperes (240 volts) or more on a residential electri­cal system or 800 amperes (240 volts) or more on a com­mercial or industrial electrical system and which costs more than $50,000.

(b) Plumbing documents for any new building or ad­dition which requires a plumbing system with more than 250 fixture units or which costs more than $50,000.

(c) Fire sprinkler documents for any new building or addition which includes a fire sprinkler system which contains 50 or more sprinkler heads.

(d) Heating, ventilation, and air-conditioning docu­ments for any new building or addition which requires more than a 15-ton-per-system capacity which is de­signed to accommodate 100 or more persons or for which the system costs more than $50,000. This para­graph does not include any document for the replace­ment or repair of an existing system in which the work does not require altering a structural part of the building or for work on a residential one-family, two-family, three-family, or four-family structure.

(e) Any specialized mechanical, electrical , or plumb­ing document for any new building or addition which in­cludes a medical gas, oxygen , steam, vacuum, toxic air filtration, halon, or fire detection and alarm system which costs more than $5,000.

No such document shall be valid unless a professional engineer who possesses a valid certificate of registra­tion has signed, dated, and stamped such document as provided in s. 471 .025.

(7) Each enforcement agency shall require that , on every threshold building:

(a) The special inspector, upon completion of the building and prior to the issuance of a certificate of occu­pancy, file a signed and sealed statement with the en­forcement agency in substantially the following form : To the best of my knowledge and belief, the above­described construction of all structural load-bearing components complies with the permitted documents, and the shoring and reshoring conforms with the shoring and reshoring plans submitted to the enforcement agen­cy.

(b) Any proposal to install an alternate structural product or system to which building codes apply be submitted to the enforcement agency for review for compliance with the codes and made part of the en­forcement agency's recorded set of permit documents.

(c) All shoring and reshoring procedures, plans, and details be submitted to the enforcement agency for re­cordkeeping . Each shoring and reshoring installation shall be supervised, inspected, and certified to be in compliance with the shoring documents by the contrac­tor.

(d) All plans for the building which are required to be signed and sealed by the architect or engineer of record contain a statement that, to the best of the architect's or engineer's knowledge, the plans and specifications comply with the applicable minimum building codes and

the applicable firesafety standards as determined by the local authority in accordance with this chapter and chapter 633.

(8) No enforcing agency may issue a building permit for construction of any threshold building except to a li­censed general contractor, as defined in s. 489.1 05(3)(a), or to a licensed building contractor, as de­fined ins. 489.105(3)(b), within the scope of his license. The named contractor to whom the building permit is is­sued shall have the responsibility for supervision, direc­tion, management, and control of the construction activi­ties on the project for which the building permit was is­sued.

(9) Any state agency with building construction re­sponsibility may enter into an agreement with any other unit of government to delegate its responsibility to en­force the delegate 's building code governing the con­struction, erection, alteration, repair, or demolition of any state building and is authorized to expend public funds for permit and inspection fees, which fees may be no greater than the fees charged others.

(1 0) No enforcing authority may issue a building per­mit for any building construction , erection, alteration, re­pair, or addition unless the permit either includes on its face or there is attached to the permit the following statement: "NOTICE: In addition to the requirements of this permit, there may be additional restrictions applica­ble to this property that may be found in the public rec­ords of this county."

(11) The enforcing agency shall require each building permit for the demolition or renovation of an existing structure to contain an asbestos notification statement which indicates the owner's or operator's responsibility to comply with the provisions of s. 455.302 and to notify the Department of Environmental Regulation of his in­tentions to remove asbestos, when applicable, in ac­cordance with state and federal law.

(12) Nothing in this section shall be construed to alter or supplement the provisions of part IV of this chapter relating to factory-built housing.

(13) 'Residential one-family or two-family detached dwelling units are not subject to plan review by the local fire official as described in this section or inspection by the local fire official as described in s. 633.081, unless expressly made subject to said plan review or inspection by local ordinance.

(14) A building permit for a single-family residential dwelling must be issued within 30 working days of appli­cation therefor unless unusual circumstances require a longer time for processing the application or unless the permit application fails to satisfy the enforcing agency's laws, ordinances, or codes.

History.-s. 10, ch. 74-167; s. 4. ch. 77-365; s. 10, ch. 83-160; s. 1, ch. 83-352; s. 2, ch. 84-24; s. 3, ch. 84-365; s. 2, ch. 85-97; s. 2, ch. 86-135; s. 2, ch. 87-287; s. 5, ch. 87-349; s. 2, ch. 88-142; s. 1, ch. 88-378.

'Note.-The words 'Residential one-family or two-family detached" were substi· luted by the editors for the words "One and two family detached residential." cf.-s. 553.77 Specific powers of the board.

PART VII

THERMAL EFFICIENCY STANDARDS

553.901 Purpose of thermal efficiency code.

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