20-108.004. Determination of Minimum Bond Required

(1) The bond required of a citrus fruit dealer shall be furnished prior to approval of an application by the Department of Citrus. The following schedule shall be used in calculating the amount of surety bond, certificate of deposit, or cash bond to be posted in support of the applicant’s citrus fruit dealer’s license:

(a) $1,000 up to 2,000 boxes;

(b) $2,000 up to 5,000 boxes;

(c) $3,750 up to 7,500 boxes;

(d) $5,000 up to 10,000 boxes;

(e) $10,000 up to 20,000 boxes;

(f) $1,000 for each additional 20,000 boxes or fraction thereof in excess of 20,000 boxes, with a maximum bond of $100,000.

(2) Repeat applications.

The minimum bond to be posted in support of repeat applications shall be not less than the amount required to cover the total volume of fruit handled by the dealer during the previous season for which bond was required. Exceptions to this rule shall only be made by special approval of the Commission, by majority vote, based upon the written request of the applicant which written request must be received by the Department no later than 20 days prior to the Commission meeting at which the application will be considered by the Commission. The applicant’s written request shall give a full explanation of why the applicant will handle less bondable fruit during the season for which application is made, than was handled by the applicant during the previous season.

(3) New applications:

The minimum bond required of new applications shall be based on the volume of fruit stated in the application which the applicant expects to handle during the season for which the application is made and for which bond is required.

(4) General minimum bond requirements for both repeat and new applications:

(a) As an additional basis for determining minimum bond required, the staff (in making recommendations) and the Commission (in setting the bond requirements) shall take into consideration such factors as any past history of the applicant (or anyone affiliated with the applicant as contemplated in Sections 601.57(1) and (5), F.S.) which may be available; the type of business to be conducted by the applicant; submissions by the public as outlined in subsection 20-108.002(4), F.A.C.; and any other information appropriate to make a proper determination as to the minimum bond required. In assessing all factors, the staff and the Commission shall, to the extent possible, assure reasonable protection to the growers and dealers with whom the applicant may be expected to do business.

(b) When the facts, including, but not limited to, those adduced by staff pursuant to Rule 20-108.006, F.A.C., indicate there is a valid reason to require a larger bond than indicated by the volume of bondable fruit shown on an application, the staff shall have the authority to recommend and the Commission shall have the authority to require, the applicant to post a higher bond which may exceed the $100,000 maximum contained within subsection 20-108.004(1), F.A.C., in order to ensure reasonable protection to the growers and dealers with whom the applicant can be expected to conduct business. Such facts shall include, but not be limited to:

1. The applicant’s amount of “overdue debt” as defined in Rule 20-108.006, F.A.C., is greater than 50% of the amount of the citrus fruit dealer’s bond coverage;

2. The applicant’s past history indicates the applicant poses a special risk of non-payment; or

3. Industry input as contemplated in paragraph 20-108.002(4)(b), F.A.C., suggests that the applicant poses a special risk of non-payment.

(c) The increased amount of surety bond, certificate of deposit, or cash bond posted in support of the applicant’s citrus fruit dealer’s license shall be determined by adding the minimum bond required for an applicant based on the schedule set out in subsection 20-108.004(1), F.A.C., plus an additional amount equal to the amount of overdue debt as defined in subsection 20-108.006(1), F.A.C. Under this rule, the increased bond amount may exceed the $100,000 maximum contained within subsection 20-108.004(1), F.A.C.

The staff shall prepare a recommendation to the Commission as to an appropriate bond amount prior to the application being approved. Final decisions as to the bond amount required shall be made by the Commission at the time the application is presented to the Commission for final approval.

Rulemaking Authority 601.10(1), 601.56, 601.61 FS. Law Implemented 601.03(8), 601.10(1), (5), 601.55, 601.56, 601.57, 601.58, 601.60, 601.61 FS. History–Formerly 105-2.02(4), Revised 1-1-75, Formerly 20-108.04, Amended 4-23-95, 1-1-13, 1-28-13, 8-31-15.