Thanks to all for the inputs. I'm not going to worry about the brake issue but the lights are another deal. A few friend who are either active or retired LEOs have told me that, if lights are required, Florida requires lights on the rear of anything that's 4' or more from the tow vehicle's rear lights. According to them that applies even in the daylight hours when lights might be required, like when it's raining. They added that it would probably be rare to get pulled over for just that issue since Florida likes to stay tourist friendly. The only time it may come up is in the case of an accident where the lawyers want to show that I contributed.
IMO it can't hurt to add a set of lights to the Toad.
I think these will do the trick and can use them even if the wife decides to buy a new car.
Towing Dolly | Towing Dollies For Sale | Kar Kaddy - Demco Tow Bars