Florida working to remove surety bond requirements for yacht brokers

Florida’s House Business and Consumer Affairs Subcommittee passed a bill on March 15 that will deregulate the state’s licensing procedures. Its passage would completely eliminate the need for business licenses altogether for some professions. A part of the bill would remove surety bond requirements for Florida yacht brokers.

Various sources have reported that House Bill 4025 would eliminate licensing registration procedures for 20 to 25 professions. Yacht brokers are among the professionals who would be affected by the deregulation. If enacted, the bill would repeal the state’s Yacht and Ship Brokers’ Act that currently requires all yacht brokers to maintain a $25,000 surety bond.

Those who are against the bill fear that deregulation for so many industries will leave the door wide open for fraudulent professionals and unethical business practices.

According to an article by Florida Commercial News.com,

“over 30 representatives (lobbyists and others) have gone before the House Business and Consumer Affairs Subcommittee to give their testimony of how bad things could get if the Florida state government were to exit the building in these various industries.”

Without the protection of surety bonds, consumers will have less financial protection against Florida yacht brokers who might try to get the better of them during purchase negotiations.

Update: In July 2011 the bill died in the Business and Consumer Affairs Subcommittee.

Sign Up for Surety News!

Comments are closed.