Florida Administrative Code › 20 - DEPARTMENT OF CITRUS › 20 - Departmental › Chapter 20-108 - CITRUS FRUIT DEALERS: REQUIRMENTS FOR APPLICATIONS, BOND, PROCESSING APPLICATIONS FOR LICENSES, AGENT'S REGISTRATION › Section 20-108.006 - Investigation and Determination of Financial Responsibility

Current through Reg. 50, No. 138; July 16, 2024
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.