5J-9.006. Security Requirement

(1) Prior to engaging in any activities as a seller of travel, each seller of travel shall file with the department an original performance bond in an amount determined by subsection (2), below. The applicant shall utilize the Surety Bond form, included in FDACS-10200 Sellers of Travel Registration Application, Rev. 04/19, incorporated by reference in rule 5J-9.002, F.A.C.

(2) The amount of the security for sellers of travel that do not offer vacation certificates shall be $25,000; however, the seller of travel may apply for a reduction by completing the Request for security reduction included in FDACS-10200 Sellers of Travel Registration Application, Rev. 04/19, incorporated by reference in rule 5J-9.002, F.A.C., and providing copies of its federal income tax return or an audited financial statement for the immediately preceding fiscal year. To qualify for reduction of the security, the seller of travel must have a satisfactory consumer complaint history. The amount of the security reduction shall be determined by the seller of travel’s dollar amount of gross annual sales, as follows:

(a) A business that has been in operation under the same ownership and control for at least one year with under $500,000 in gross annual sales, may request to reduce its security to $10,000.

(b) A business that has been in operation under the same ownership and control for at least one year with gross annual sales between $500,000 and $1,000,000, may request to reduce its security to $15,000.

(c) A business that has been in operation under the same ownership and control for at least one year with gross annual sales between $1,000,000 and $2,000,000, may request to reduce its security to $20,000.

(3) The amount of the security for a newly established business or a business under new ownership shall be $25,000; however, the seller of travel may apply to reduce its security to $10,000 by completing the Request for security reduction included in FDACS-10200 Sellers of Travel Registration Application, Rev. 04/19, incorporated by reference in rule 5J-9.002, F.A.C. To be eligible for a reduction in security, a newly established seller of travel must meet the following criteria:

(a) Has not been in operation for more than one year;

(b) None of its owners, directors, officers, or general partners have had any civil, criminal, or administrative action instituted against him in the vacation or travel business, and none of its owners, directors, officers, or general partners have been affiliated with any seller of travel that has had any civil, criminal, or administrative action instituted against it in the vacation or travel business; and

(c) None of its owners, directors, officers, or general partners have an unsatisfactory consumer complaint history with the department or have been affiliated with any seller of travel that has had an unsatisfactory consumer complaint history with the department.

(4) The department shall deny or revoke the security reduction if the seller of travel:

(a) Fails to timely register as a seller of travel;

(b) Fails to timely post security;

(c) Has an unsatisfactory consumer complaint history with the department, or

(d) Violates any other provision of sections 559.926-.929, F.S., or this chapter.

(5) Claims against a bond shall be submitted on FDACS-10212, Sellers of Travel Claim Affidavit, Rev. 02/17, hereby incorporated by reference. Copies of this form may be obtained from the Department of Agriculture and Consumer Services, Division of Consumer Services, Attention: Sellers of Travel, 2005 Apalachee Parkway, Tallahassee, Florida 32399-6500, or accessed online at: http://www.flrules.org/Gateway/reference.asp?No=Ref-08467.

Rulemaking Authority 559.929(2), (3), 559.9355(3), 570.07(23) FS. Law Implemented 559.929 FS. History–New 2-8-94, Amended 6-4-95, 11-6-95, 12-27-95, 2-11-98, 10-21-03, 4-5-15, 7-26-17, 7-11-19.