Bill Text: FL H1375 | 2010 | Regular Session | Introduced


Bill Title: Motor Vehicle Franchise Agreements

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2010-04-30 - Died in Committee on Insurance, Business, & Financial Affairs Policy (GGPC) [H1375 Detail]

Download: Florida-2010-H1375-Introduced.html
HB 1375
1
A bill to be entitled
2An act relating to motor vehicle franchise agreements;
3amending s. 320.60, F.S.; revising the definition of the
4terms "agreement" and "franchise agreement" to include
5certain ancillary agreements; amending s. 320.605, F.S.;
6revising legislative intent; amending s. 320.61, F.S.;
7prohibiting the Department of Highway Safety and Motor
8Vehicles from renewing the license of a manufacturer,
9factory branch, distributor, or importer unless the
10licensee complies with specified provisions; amending s.
11320.63, F.S.; requiring such licensee to provide an
12affidavit to the department regarding the provisions of
13its existing franchise agreements; amending s. 320.64,
14F.S.; providing for a dealer to make an immediate request
15for payment for loss if there is a public announcement of
16the discontinuance of a line-make; providing for a
17determination of the fair market value of the franchise;
18prohibiting requiring an existing motor vehicle dealer to
19enter into a site control agreement or an exclusive use
20agreement; defining the terms "site control agreement" and
21"exclusive use agreement"; amending s. 320.695, F.S.;
22authorizing a motor vehicle dealer association to apply
23for injunctive relief under certain circumstances for an
24action by a manufacturer, importer, or distributor which
25adversely affects more than one of the association's
26members; amending s. 320.699, F.S.; authorizing certain
27associations to seek a declaration and adjudication of
28their rights with respect to the alleged action or conduct
29of a manufacturer, importer, or distributor; providing
30procedures for a hearing conducted by the department;
31providing an effective date.
32
33Be It Enacted by the Legislature of the State of Florida:
34
35 Section 1. Subsection (1) of section 320.60, Florida
36Statutes, is amended to read:
37 320.60 Definitions for ss. 320.61-320.70.-Whenever used in
38ss. 320.61-320.70, unless the context otherwise requires, the
39following words and terms have the following meanings:
40 (1) "Agreement" or "franchise agreement" means a contract,
41franchise, new motor vehicle franchise, sales and service
42agreement, or dealer agreement or any other terminology used to
43describe the contractual relationship between a manufacturer,
44factory branch, distributor, or importer, and a motor vehicle
45dealer, including any ancillary agreement relating to a dealer's
46facilities, staffing, and operations or relating to a licensee's
47programs, policies, or requirements pursuant to which the motor
48vehicle dealer is authorized to transact business pertaining to
49motor vehicles of a particular line-make.
50 Section 2. Section 320.605, Florida Statutes, is amended
51to read:
52 320.605 Legislative intent.-It is the intent of the
53Legislature to protect the public health, safety, and welfare of
54the citizens of the state by regulating the licensing of motor
55vehicle dealers and manufacturers, maintaining competition,
56reconciling the disparity in the economic power manufacturers
57have over motor vehicle dealers, providing consumer protection
58and fair trade, and providing minorities with opportunities for
59full participation as motor vehicle dealers.
60 Section 3. Subsection (2) of section 320.61, Florida
61Statutes, is amended to read:
62 320.61 Licenses required of motor vehicle manufacturers,
63distributors, importers, etc.-
64 (2) The department may prescribe an abbreviated
65application for renewal of a license if the licensee had
66previously filed an initial application pursuant to s. 320.63.
67The application for renewal shall include any information
68necessary to bring current the information required in the
69initial application. The department shall not issue a renewal of
70any license unless the licensee complies with the provisions of
71s. 320.63.
72 Section 4. Subsections (4) through (7) of section 320.63,
73Florida Statutes, are renumbered as subsections (5) through (8),
74respectively, and a new subsection (4) is added to that section
75to read:
76 320.63 Application for license; contents.-Any person
77desiring to be licensed pursuant to ss. 320.60-320.70 shall make
78application therefor to the department upon a form containing
79such information as the department requires. The department
80shall require, with such application or otherwise and from time
81to time, all of the following, which information may be
82considered by the department in determining the fitness of the
83applicant or licensee to engage in the business for which the
84applicant or licensee desires to be licensed:
85 (4) Upon annual renewal of its license, an affidavit
86acknowledging that the terms or provisions of every existing
87franchise agreement with a motor vehicle dealer in this state
88are not inconsistent with, prohibited by, or contrary to the
89existing provisions contained in ss. 320.60-320.70 and the
90existing rules adopted by the department then in effect, and
91that any terms or provisions in such a franchise agreement which
92are determined to be inconsistent with, prohibited by, or
93contrary to the existing laws or rules of this state then in
94effect are of no force and effect.
95 Section 5. Subsection (36) of section 320.64, Florida
96Statutes, is amended, and subsection (39) is added to that
97section, to read:
98 320.64 Denial, suspension, or revocation of license;
99grounds.-A license of a licensee under s. 320.61 may be denied,
100suspended, or revoked within the entire state or at any specific
101location or locations within the state at which the applicant or
102licensee engages or proposes to engage in business, upon proof
103that the section was violated with sufficient frequency to
104establish a pattern of wrongdoing, and a licensee or applicant
105shall be liable for claims and remedies provided in ss. 320.695
106and 320.697 for any violation of any of the following
107provisions. A licensee is prohibited from committing the
108following acts:
109 (36)(a) Notwithstanding the terms of any franchise
110agreement, in addition to any other statutory or contractual
111rights of recovery after the voluntary or involuntary
112termination, cancellation, or nonrenewal of a franchise, failing
113to pay the motor vehicle dealer, as provided in paragraph (e)
114(d), the following amounts:
115 1. The net cost paid by the dealer for each new car or
116truck in the dealer's inventory with mileage of 2,000 miles or
117less, or a motorcycle with mileage of 100 miles or less,
118exclusive of mileage placed on the vehicle before it was
119delivered to the dealer.
120 2. The current price charged for each new, unused,
121undamaged, or unsold part or accessory that:
122 a. Is in the current parts catalogue and is still in the
123original, resalable merchandising package and in an unbroken
124lot, except that sheet metal may be in a comparable substitute
125for the original package; and
126 b. Was purchased by the dealer directly from the
127manufacturer or distributor or from an outgoing authorized
128dealer as a part of the dealer's initial inventory.
129 3. The fair market value of each undamaged sign owned by
130the dealer which bears a trademark or trade name used or claimed
131by the applicant or licensee or its representative which was
132purchased from or at the request of the applicant or licensee or
133its representative.
134 4. The fair market value of all special tools, data
135processing equipment, and automotive service equipment owned by
136the dealer which:
137 a. Were recommended in writing by the applicant or
138licensee or its representative and designated as special tools
139and equipment;
140 b. Were purchased from or at the request of the applicant
141or licensee or its representative; and
142 c. Are in usable and good condition except for reasonable
143wear and tear.
144 5. The cost of transporting, handling, packing, storing,
145and loading any property subject to repurchase under this
146section.
147 (b) If the termination, cancellation, or nonrenewal of the
148dealer's franchise is the result of the bankruptcy or
149reorganization of a licensee or its common entity;, or the
150result of a licensee's plan, scheme, or policy, whether or not
151publicly declared, which is intended to decrease or has the
152effect of decreasing the number of, or eliminating, the
153licensee's franchised motor vehicle dealers of a line-make in
154this state;, or the result of a termination, elimination, or
155cessation of manufacture or reorganization of a licensee or its
156common entity;, or the result of a termination, elimination, or
157cessation of manufacture or distribution of a line-make, in
158addition to the above payments to the dealer, the licensee or
159its common entity, shall be liable to and shall pay the motor
160vehicle dealer for an amount at least equal to the fair market
161value of the franchise for the line-make, which shall be the
162greater of the value determined as of the day the licensee
163announces the action that results in the termination,
164cancellation, or nonrenewal, or the value determined on the day
165that is 12 months before that date. Fair market value of the
166franchise for the line-make includes only the goodwill value of
167the dealer's franchise for that line-make in the dealer's
168community or territory.
169 (c) In the case of a public announcement by the licensee
170or its common entity that the line-make will be discontinued
171presently or in the future, the motor vehicle dealer may
172immediately request payment of fair market value under this
173subsection following the announcement in exchange for canceling
174any further franchise rights, except payments owed to the motor
175vehicle dealer in the ordinary course, and such fair market
176value for the franchise shall be the greater of the value
177determined as of the day of the initial public announcement or
178the value determined on the day that is 12 months before that
179date.
180 (d)(c) This subsection does not apply to a termination,
181cancellation, or nonrenewal that is implemented as a result of
182the sale of the assets or corporate stock or other ownership
183interests of the dealer.
184 (e)(d) The dealer shall return the property listed in this
185subsection to the licensee within 90 days after the effective
186date of the termination, cancellation, or nonrenewal. The
187licensee shall supply the dealer with reasonable instructions
188regarding the method by which the dealer must return the
189property. Absent shipping instructions and prepayment of
190shipping costs from the licensee or its common entity, the
191dealer shall tender the inventory and other items to be returned
192at the dealer's facility. The compensation for the property
193shall be paid by the licensee or its common entity
194simultaneously with the tender of inventory and other items,
195provided that, if the dealer does not have clear title to the
196inventory and other items and is not in a position to convey
197that title to the licensee, payment for the property being
198returned may be made jointly to the dealer and the holder of any
199security interest.
200 (39)(a) On or after the effective date of this subsection
201and notwithstanding the terms of any franchise agreement, the
202applicant or licensee has directly or indirectly required an
203existing motor vehicle dealer or motor vehicle dealer applicant
204to enter into a site control agreement or exclusive use
205agreement.
206 (b) For purposes of this subsection, the terms "site
207control agreement" and "exclusive use agreement" include any
208agreement that has the effect of:
209 1. Requiring that the motor vehicle dealer establish or
210maintain exclusive dealership facilities; or
211 2. Restricting the ability of the motor vehicle dealer, or
212the ability of the motor vehicle dealer's lessor in the event
213the dealership facility is being leased, to transfer, sell,
214lease, or change the use of the dealership premises, whether by
215sublease, lease, collateral pledge of lease, right of first
216refusal to purchase or lease, option to purchase, option to
217lease, or other similar agreement, regardless of the parties to
218such agreement.
219
220A motor vehicle dealer who can demonstrate that a violation of,
221or failure to comply with, any of the preceding provisions by an
222applicant or licensee will or can adversely and pecuniarily
223affect the complaining dealer, shall be entitled to pursue all
224of the remedies, procedures, and rights of recovery available
225under ss. 320.695 and 320.697.
226 Section 6. Section 320.695, Florida Statutes, is amended
227to read:
228 320.695 Injunction.-In addition to the remedies provided
229in this chapter, and notwithstanding the existence of any
230adequate remedy at law, the department, or any motor vehicle
231dealer in the name of the department and state and for the use
232and benefit of the motor vehicle dealer, or any association that
233is comprised of a minimum of 100 new motor vehicle dealers
234licensed in this state and that represents the collective
235interests of its members with more than one member directly and
236adversely affected by the action or conduct of an applicant or
237licensee may is authorized to make application to any circuit
238court of the state for the grant, upon a hearing and for cause
239shown, of a temporary or permanent injunction, or both,
240restraining any person from acting as a licensee under the terms
241of ss. 320.60-320.70 without being properly licensed hereunder,
242or from violating or continuing to violate any of the provisions
243of ss. 320.60-320.70, or from failing or refusing to comply with
244the requirements of this law or any rule or regulation adopted
245hereunder. Such injunction shall be issued without bond. A
246single act in violation of the provisions of ss. 320.60-320.70
247shall be sufficient to authorize the issuance of an injunction.
248However, this statutory remedy shall not be applicable to any
249motor vehicle dealer after final determination by the department
250under s. 320.641(3).
251 Section 7. Section 320.699, Florida Statutes, is amended
252to read:
253 320.699 Administrative hearings and adjudications;
254procedure.-
255 (1) A motor vehicle dealer, or person with entitlements to
256or in a motor vehicle dealer, who is directly and adversely
257affected by the action or conduct of an applicant or licensee
258that which is alleged to be in violation of any provision of ss.
259320.60-320.70, or any association that is comprised of a minimum
260of 100 new motor vehicle dealers licensed in this state and that
261represents the collective interests of its members with more
262than one member directly and adversely affected by the action or
263conduct of an applicant or licensee that is alleged to be in
264violation of any provision of ss. 320.60-320.70, may seek a
265declaration and adjudication of its rights with respect to the
266alleged action or conduct of the applicant or licensee by:
267 (a) Filing with the department a request for a proceeding
268and an administrative hearing which conforms substantially with
269the requirements of ss. 120.569 and 120.57; or
270 (b) Filing with the department a written objection or
271notice of protest pursuant to s. 320.642.
272 (2) If a written objection or notice of protest is filed
273with the department under paragraph (1)(b), a hearing shall be
274held not sooner than 180 days nor later than 240 days from the
275date of filing of the first objection or notice of protest,
276unless the time is extended by the administrative law judge for
277good cause shown. This subsection shall govern the schedule of
278hearings in lieu of any other provision of law with respect to
279administrative hearings conducted by the Department of Highway
280Safety and Motor Vehicles or the Division of Administrative
281Hearings, including performance standards of state agencies,
282which may be included in current and future appropriations acts.
283 Section 8. This act shall take effect July 1, 2010.
CODING: Words stricken are deletions; words underlined are additions.
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