20-108.006. Investigation and Determination of Financial Responsibility

It is the express intention of the Department of Citrus that Department staff make a reasonable effort in its review and investigation of each application to determine applicant’s financial responsibility to citrus growers and dealers. In order to facilitate this investigation, each new applicant shall submit at least three business references (grower or credit, as provided on the citrus fruit dealer application) and supply the department with the requested information necessary to conduct a Florida Department of Law Enforcement background check. Such determination additionally shall consider the following factors:

(1) For the purpose of this rule, the term “overdue debt” means that a valid invoice from a grower or dealer remains unpaid by the applicant (or anyone affiliated with the applicant as contemplated in Sections 601.57(1) and (5), F.S.) for more than 90 days (and that the creditor has not signed off on the debt).

(2) Where information on an applicant shows outstanding debts to growers or dealers, which are not shown as being overdue, involving the handling, purchase or sale of citrus fruit, the staff shall make a determination as to whether or not the number and total amount of such debts appear to be within the normal range for such debts that might be expected for the type and size of operation taking into account the current market price for fruit, the amount of citrus fruit dealers bond coverage, the time of year and any other factors or information pertinent to the particular situation. If the staff feels it is necessary to do so in order to clarify the status of indebtedness of the applicant, it shall contact each creditor or take such other action it deems necessary to verify the amount and due date of each debt and the degree of satisfaction with which the debt is being handled.

(3) Where information on an application shows overdue debts to growers or dealers involving the handling, purchase or sale of citrus fruit, the staff shall determine whether or not a formal complaint has been filed with the Department of Agriculture and Consumer Services by each creditor. Where a formal complaint has been filed, the amount claimed and the amount of indebtedness shown on the application shall be checked for accuracy. If no formal complaint has been filed, the staff shall notify each creditor, as shown on the application or otherwise known by the staff to exist, and verify the accuracy and due date of the debt and advise the creditor of his right to file formal complaint with the Department of Agriculture and Consumer Services. Where the circumstances appear to warrant it, all creditors covered by this section shall be contacted by the staff in writing by certified mail, return receipt requested, and asked to make recommendation to the Department of Citrus as to whether or not the applicant should be approved for issuance of a new license. If any such creditor objects to such approval, the staff shall not be authorized to give conditional approval of the application.

(4) If the staff review and investigation of a properly completed application reveals unusual or questionable financial circumstances, which cannot otherwise be satisfactorily resolved, staff shall require the applicant to furnish a financial statement which shall be considered “additional information” as contemplated in Section 120.60(1), F.S. and subsection 20-108.001(1), F.A.C., and, therefore, must be submitted to the Department within 15 days of Department’s request for the same.

(5) Staff shall not have the authority to give conditional staff approval nor shall the Commission approve a license application without specific conditions being placed on the license if:

(a) The total amount of overdue debt is greater than 75% of the amount of citrus fruit dealers bond coverage; and/or

(b) The application bears the name of any individual who has a past history of a direct connection with a citrus fruit dealer against whom there is still a record of outstanding debts which arose out of his dealings in citrus fruit.

Nothing herein shall prohibit the Commission from denying the license based on the above criteria.

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(5)(c), (d), Amended 1-1-75, Formerly 20-108.06, Amended 4-23-95, 1-28-13.