Senate Bill 1366c1

    Florida Senate - 1998                           CS for SB 1366

    By the Committee on Commerce and Economic Opportunities and
    Senator Klein




    310-1932-98

  1                      A bill to be entitled

  2         An act relating to motor vehicles; amending s.

  3         521.004, F.S.; modifying the disclosure form

  4         for a motor vehicle lease; amending s. 681.102,

  5         F.S.; modifying definitions applicable to motor

  6         vehicle sales warranties; providing an

  7         effective date.

  8

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

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11         Section 1.  Section 521.004, Florida Statutes, is

12  amended to read:

13         521.004  Disclosures.--A retail lessor must:

14         (1)  Disclose to the retail lessee in the lease

15  agreement in a separate blocked section, in capital letters of

16  at least 12-point bold type, with the appropriate amounts

17  specified, as follows:

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19                    THIS IS A LEASE AGREEMENT.

20                THIS IS NOT A PURCHASE AGREEMENT.

21

22  PLEASE REVIEW THESE MATTERS CAREFULLY AND SEEK INDEPENDENT

23  PROFESSIONAL ADVICE IF YOU HAVE ANY QUESTIONS CONCERNING THIS

24  TRANSACTION. YOU ARE ENTITLED TO AN EXACT COPY OF THE

25  AGREEMENT YOU SIGN.

26         CAPITALIZED COST             $.................

27           (Your total cost of goods, services, & fees.)

28

29         CAPITALIZED COST REDUCTION   $.................

30           (Your total credits.)

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






    Florida Senate - 1998                           CS for SB 1366
    310-1932-98




  1         ADJUSTED OR NET CAPITALIZED COST $.............

  2           (Your net cost of goods, services, & fees.)

  3

  4  For purposes of this subsection, that portion of the

  5  disclosure stating the terms "capitalized cost," "capitalized

  6  cost reduction," and "adjusted or net capitalized cost," and

  7  the explanations contained in the parentheticals, as well as

  8  their respective amounts, are not required to be disclosed if

  9  the terms "gross capitalized cost," "capitalized cost

10  reduction," and "adjusted capitalized cost" and the

11  descriptions and disclosures set forth and required by the

12  federal Consumer Leasing Act, 15 USC s. 1667 et seq., and

13  Federal Reserve Board Regulation M. 12 CFR part 213, are set

14  forth elsewhere in the lease agreement.

15         (2)  Provide the retail lessee with a copy of each

16  document signed by the retail lessee during the course of the

17  lease transaction.

18         Section 2.  Subsections (3), (9), and (12) of section

19  681.102, Florida Statutes, are amended to read:

20         681.102  Definitions.--As used in this chapter, the

21  term:

22         (3)  "Collateral charges" means those additional

23  charges to a consumer wholly incurred as a result of the

24  acquisition of the motor vehicle. For the purposes of this

25  chapter, collateral charges include, but are not limited to,

26  manufacturer-installed or agent-installed items or service

27  charges, earned finance or lease charges, sales taxes, and

28  title charges.

29         (9)  "Lease price" means the aggregate of the

30  capitalized cost, as defined in s. 521.003(2), and each of the

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






    Florida Senate - 1998                           CS for SB 1366
    310-1932-98




  1  following items to the extent not included in the capitalized

  2  cost:

  3         (a)  Lessor's earned rent charges through the date of

  4  repurchase actual purchase costs.

  5         (b)  Collateral charges, if applicable.

  6         (c)  Any fee paid to another to obtain the lease.

  7         (d)  Any insurance or other costs expended by the

  8  lessor for the benefit of the lessee.

  9         (e)  An amount equal to state and local sales taxes,

10  not otherwise included as collateral charges, paid by the

11  lessor when the vehicle was initially purchased.

12         (f)  An amount equal to 5 percent of (a).

13         (12)  "Lessee cost" means the aggregate of the security

14  deposit, capitalized cost-reduction as defined in s.

15  521.003(3), and rental payments previously paid to the lessor

16  for the leased vehicle but excludes debt from any other

17  transaction.

18         Section 3.  This act shall take effect July 1, 1998.

19

20          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
21                         Senate Bill 1366

22

23  This bill amends the Florida Lemon Law to include "earned
    rent" charges as a cost that manufacturers are required to
24  refund to lessors for a nonconforming motor vehicle.

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