Senate Bill sb2132

    Florida Senate - 2001                                  SB 2132

    By Senator Jones





    40-1390B-01

  1                      A bill to be entitled

  2         An act relating to heir-finder businesses;

  3         providing legislative intent; defining the term

  4         "heir-finder business"; requiring heir-finder

  5         businesses to obtain a surety bond or establish

  6         a trust account or irrevocable letter of

  7         credit; requiring contracts or agreements to

  8         provide certain notice; providing for the

  9         bringing of certain actions under certain

10         circumstances; limiting liability; providing an

11         effective date.

12

13  Be It Enacted by the Legislature of the State of Florida:

14

15         Section 1.  (1)  The Legislature declares that it is in

16  the best interests of residents of this state or any other

17  state who contract with an heir-finder business operating in

18  this state that such business obtain and maintain a surety

19  bond for purposes of operating such business.

20         (2)  As used in this act, the term "heir-finder

21  business" means a sole proprietorship, partnership, or

22  corporation that in the regular course of business arranges,

23  manages, advertises, promotes, or carries out contracts or

24  agreements to locate heirs to property.

25         (3)  An heir-finder business may not operate in this

26  state without first either obtaining and maintaining a surety

27  bond issued by a surety company authorized to do business in

28  this state or establishing and maintaining a trust account or

29  irrevocable letter of credit with a licensed and insured bank

30  or savings institution located in this state. The amount of

31  the bond, trust account, or irrevocable letter of credit must

                                  1

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2001                                  SB 2132
    40-1390B-01




  1  be an amount not less than $100,000. The bond, trust account,

  2  or letter of credit must be to the state and in the favor of

  3  any person who is a party to the contract or agreement who

  4  suffers any loss as a result of any violation of the

  5  conditions of such contract or agreement. Any contract or

  6  agreement entered into by an heir-finder business must contain

  7  a provision disclosing the existence of such surety bond,

  8  trust account, or irrevocable letter of credit and of the

  9  right to recovery under the bond, trust account, or letter of

10  credit available to a party to such contract or agreement who

11  has incurred a loss as a result of such violation. Any person

12  who suffers damages as a result of an heir-finder business'

13  breach of a contract or agreement or of any obligation arising

14  therefrom, may bring an action against the bond, trust

15  account, or irrevocable letter of credit to recover damages

16  suffered; however, the aggregate liability of the surety,

17  trustee, or financial institution is only for actual damages

18  and in no event may exceed the amount of the bond, trust

19  account, or irrevocable letter of credit.

20         Section 2.  This act shall take effect October 1, 2001.

21

22            *****************************************

23                       LEGISLATIVE SUMMARY

24    Requires heir-finder businesses operating in this state
      to maintain a surety bond, trust account, or irrevocable
25    letter of credit in favor of any person who suffers
      damages as a result of the business' breach of contract.
26    Requires the contract to provide notice that an action
      may be brought against that security.
27

28

29

30

31

                                  2

CODING: Words stricken are deletions; words underlined are additions.