Amending rule to include those sections of repealed Chapter 20-1, F.A.C. that meet Chapter 120, F.S., requirements and are not repetitive language.

 

DEPARTMENT OF CITRUS

RULE NOS.:RULE TITLES:

20-108.001General Provisions

20-108.002Processing of Applications

20-108.004Determination of Minimum Bond Required

20-108.0041Bond Exempt Fruit

20-108.006Investigation and Determination of Financial Responsibility

20-108.007Disposition of Application and Revocation of Licenses

20-108.008Special Presentations

20-108.009Treatment of Persons Protected Under the Bankruptcy Act

20-108.010Registration of Dealer's Agents Required

20-108.011Application for Agent Registration

20-108.012Examination of Agent Application

20-108.013Agent Registration Approval

PURPOSE AND EFFECT: Amending rule to include those sections of repealed Chapter 20-1, F.A.C. that meet Chapter 120, F.S., requirements and are not repetitive language.

SUMMARY: License and Bond, Bond Exempt Fruit, Dealer’s Agents registration, fees, and licensing.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: upon review of the proposed rule, the department has determined that the amendments will not exceed any one of the economic analysis criteria in a SERC as set forth in Section 120.541(2)(a), F.S.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 601.10(1),(7), 601.56, 601.61, 601.601 FS.

LAW IMPLEMENTED: 601.03(8), 601.10(1),(5),(7), 601.55, 601.56, 601.57, 601.58, 601.59(2), 601.60, 601.61, 601.601 FS.

A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:

DATE AND TIME: July 22, 2015 at 9:00 a.m.

PLACE: Florida Department of Citrus, 605 East Main Street, Bartow, Florida 33830

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Alice Wiggins, Administrative Assistant - Legal, P O Box 9010, Bartow, FL 33831 or 863-537-3956 or [e-mail]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

20-108.001 General Provisions.

(1) Any person desiring to engage in business as a citrus fruit dealer in the state shall make application on forms provided by the department (CIT/LIC/01 Rev. 7-10-07, subsection 20-100.004(1) F.A.C. and CIT/LIC/02 rev. 6-22-04, subsection 20-100.004(2) F.A.C.). 

(2)(1) All citrus fruit dealer license application forms (CIT/LIC/01 Rev. 7-10-07, subsection 20-100.004(1) F.A.C. and CIT/LIC/02 rev. 6-22-04, subsection 20-100.004(2) F.A.C.) must be properly completed and timely filed by the applicant by June 15 of each year. Each properly completed application shall be carefully reviewed and appropriate investigation made by the staff as hereinafter provided and any errors or omissions noticed to the applicant in accordance with the provisions of the Administrative Procedures Act, s.120.60, Florida Statutes.

(3)(2) If the staff is unable to complete processing of an application because the applicant has failed to properly or fully complete the application, or has failed to meet all applicable requirements of the law and rules, and staff has timely notified the applicant of such deficiencies, the application shall be placed in the inactive file and reported to the Department of Agriculture and Consumer Services, Bond and License Section, for appropriate action.  The applicant shall be notified of such action.

Rulemaking Authority 601.10(1), 601.56 FS.  Law Implemented 601.03(8), 601.10(5), 601.55, 601.56, 601.57, 601.58, 601.60, 601.61 FS. History--Revised 12-18-74, Effective 12-31-74, Formerly 105-2.02(1), Formerly 20-108.01, Amended 4-23-95, 7-2-03, 1-28-13,         .

 

20-108.002 Processing of Applications.

No change.

 

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 posted in support of the applicant’s citrus fruit dealer’s license:

(a) through (f) No change.

(2) through (4) No change.

Rulemaking Authority 601.10(1),(7), 601.56 FS. Law Implemented 601.03(8), 601.10(1),(5),(7), 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,                   .

 

20-108.0041 Bond Exempt Fruit.

Citrus fruit to be exempt from bond coverage shall be limited to the following:

(1) Fruit handled that is produced by the applicant.  To qualify for bond exemption, this fruit must be produced on groves that are either owned or leased in the applicant's business name appearing on the license application.

(2) Fruit handled for its members by an applicant that is a cooperative marketing association organized under the provisions of Chapter 618 or 619, Florida Statutes.  To qualify for bond exemption, this fruit must be owned by bona fide members of the cooperative involved.

(3) Fresh fruit handled by the applicant which has been prepared and packaged for commercial marketing by a registered packinghouse other than the applicant and has been inspected and certified for shipment.

(4) Fruit handled by the applicant from citrus groves for which the applicant provides complete grove management services, under direct contract with the owner or producer. 

(a) "Complete grove management services" is defined to mean that the caretaker or contracting dealer shall have, in writing, full authority to:

1. Handle or supervise all of the grove maintenance work.

2. Market, in the name appearing on his citrus fruit dealer's license, all fruit produced on the grove or groves covered.

3. Receive payment for all fruit so marketed.

4. Pay all bills or charges incurred in the performance of these services.

(b) Submit the balance of all payment received, along with a full accounting of all expenditures, to the producer.

(c) The contract shall be properly executed, cover the period for which the license is to be issued, and shall show, among other things, the following:

1. Name and mailing address of the producer.

2. Date executed and the period of time for which contract is to be in force.

3. Name, if any, and location of the grove or groves covered.

4. Exact type and nature of services to be rendered by the caretaker or contracting dealer, including a statement authorizing said caretaker or contracting dealer to perform complete "grove management services" for the owner or producer.

5. Estimated number of boxes of each variety of citrus fruit expected to be produced on the grove or groves covered during the season for which contracting dealer has applied for license.

6. A clear statement that the producer understands that no citrus fruit dealer's bond will be posted by the contracting dealer for the volume of fruit covered by the contract and that, as a result, the producer will not have recourse under any citrus fruit dealer's bond that may be posted by the contracting dealer during the contract period regardless of the type or nature of any default that may occur involving the purchase, handling, sale, and accounting of purchases and sales of any citrus fruit covered by the contract.

(d) A copy of all such contracts shall be filed with the Department of Citrus.  If the Department finds that the contract or contracts conform with all requirements outlined above, it shall recommend to the Department of Agriculture that the contracting dealer not be required to post bond for that volume of fruit covered by such contracts.

(5) Fruit handled by a corporate or partnership applicant that is from citrus groves owned by officers or stockholders of the corporation, the parent corporation, a wholly owned subsidiary corporation or its corporate officers or stockholders, or any partner of a partnership. To qualify for bond exemption, properly executed waivers of right to any claim against any citrus fruit dealer's bond which may be posted by the applicant for other fruit handled shall be attached to and made a part of the application for license.  The waivers shall cover the period of time for which the license is to be issued and shall show, among other things, the following:

(a) Name and mailing address of the producer.

(b) Business relationship of the producer to the applicant.

(c) Date executed and period of time for which the waiver is to be in force.

(d) Name, if any, and location of the grove or groves covered.

(e) Estimated number of boxes of citrus fruit expected to be produced on the grove or groves covered by the waiver during the season for which the applicant has applied for a license.

(f) A clear statement that the producer understands that no citrus fruit dealer's bond will be posted by the applicant for the volume of fruit covered by the waiver and that the producer expressly waives any right to make a claim against any citrus fruit dealer's bond which may be required to be posted by applicant for other fruit handled.

(6) Fruit handled by the applicant which has been processed by a registered processing plant, other than the applicant.  To qualify for bond exemption, the citrus products must have been prepared for commercial marketing and the appropriate certificate of inspection issued.

Rulemaking Authority 601.10(1), 601.61 FS.  Law Implemented 601.61(5) FS.  History—New_________.

 

20-108.006Investigation and Determination of Financial Responsibility.

No change.

 

20-108.007Disposition of Application and Revocation of Licenses.

No change.

 

20-108.008Special Presentations.

No change.

 

20-108.009Treatment of Persons Protected Under the Bankruptcy Act.

No change.

 

20-108.010 Registration of Dealer's Agents Required.

(1) Every licensed citrus fruit dealer shall register with the Department of Agriculture each and every agent who weighs citrus fruit for use in computing the amount to be paid, or who is authorized to represent him in transactions involving the consignment, purchase or sale of citrus fruit in fresh form prior to its being delivered to a packing house or processing plant.  A person who holds a valid citrus fruit dealer's license need not be registered as an agent in order to do business in the name in which said license is issued. 

(2) In applying for registration of an agent, a citrus fruit dealer may advise the Department of Agriculture that the agent's authority to represent the dealer is restricted to the weighing of citrus fruit for use in computing the amount to be paid therefor.

Rulemaking Authority 601.10(1), 601.601(2) FS.  Law Implemented 601.601 FS.  History—New _______.

 

20-108.011Application for Agent Registration.

(1) Any citrus fruit dealer desiring to register an agent shall make application on form FDACS-07054 Rev. 08/14, incorporated herein by reference, (http site)  furnished by the Department of Agriculture for registration of such person as his duly authorized agent.  Separate forms shall be provided for registration of agents whose authority to represent the applying dealer is to be restricted to the weighing of citrus fruit for use in computing the amount to be paid therefor.

(2) No citrus fruit dealer shall pay in the form of salary, fee, brokerage, or otherwise, any person for services rendered in the weighing of citrus fruit whenever the weight thereof may be used in computing the amount to be paid therefor, or in negotiating the consignment, purchase or sale of citrus fruit in fresh form prior to its delivery to a packinghouse or processing plant, unless such person is a licensed citrus fruit dealer or is duly registered with the Department of Agriculture as said dealer's agent.

(3) The Department of Agriculture shall require that the application contain sufficient information to assure a positive identification of the person to be registered, including the person's full name, date of birth, and phone number. 

(4) The application shall be filed not less than 5 days prior to active participation of an agent on behalf of a dealer who has obtained its license, and in no event shall any person act as an agent prior to registration having been granted.

Rulemaking Authority 601.10(1), 601.601(2) FS. Law Implemented 601.601 FS. History—New           .

 

20-108.012 Examination of Agent Application.

(1) The Department of Agriculture shall, within 15 days of the citrus fruit dealer obtaining its license, examine each application for agent registration and consider the information submitted therewith. The Department of Agriculture shall also consider the past history of any applicant for whom registration is sought, including failure of the applicant to comply with any valid order issued by the Department of Agriculture or Department of Citrus relating to citrus fruit laws or rules, whether individually or in connection with any licensed citrus fruit dealer for whom the applicant has acted as agent.

(2) An application for agent registration from which questions arise as to their past history relating to citrus as outlined above or by a person, or spouse, parent, or sibling of a person, who has previously been denied a citrus fruit dealer license by the Florida Citrus Commission shall, prior to registration being granted, be referred to the Department of Citrus, together with a report detailing the facts and circumstances surrounding the application.  Agent registration shall not be approved if the Florida Citrus Commission makes a finding that such person would not be qualified for license as a citrus fruit dealer.

Rulemaking Authority 601.10(1), 601.601(2) FS. Law Implemented 601.601 FS. History—New            .

 

20-108.013 Agent Registration Approval.

(1) Upon determination by the Department of Agriculture that all requirements for registration of a citrus fruit dealer's agent, as provided in law and Department of Citrus rules, have been met and the required fee paid, it shall duly register said agent and issue an identification card certifying such registration.

(2) If the agent being registered is one whose authority to represent the applying citrus fruit dealer is to be restricted to the weighing of citrus fruit for use in computing the amount to be paid therefor, the identification card shall indicate such restricted authority.

Rulemaking Authority 601.10(1), 601.601(2) FS. Law Implemented 601.601(2), 601.59(2) FS. History—New            .

 

NAME OF PERSON ORIGINATING PROPOSED RULE: William Roberts, In-House General Counsel

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Florida Citrus Commission

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: May 20, 2015

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: May 21, 2015