House Bill 3897

    Florida House of Representatives - 1998                HB 3897

        By Representatives Mackenzie, King and Jones






  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:

10

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:

18

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 House of Representatives - 1998                HB 3897

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  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. 1501 et seq., and

13  Federal Reserve Board Regulation M. 12 CFR s. 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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    Florida House of Representatives - 1998                HB 3897

    230-228A-98






  1  following items to the extent not included in the capitalized

  2  cost:

  3         (a)  Lessor's actual purchase costs.

  4         (a)(b)  Collateral charges, if applicable.

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

  6         (c)(d)  Any insurance or other costs expended by the

  7  lessor for the benefit of the lessee.

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

  9  not otherwise included as collateral charges, paid by the

10  lessor when the vehicle was initially purchased.

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

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

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

14  521.003(3), and rental payments previously paid to the lessor

15  for the leased vehicle but excludes debt from any other

16  transaction.

17         Section 3.  This act shall take effect July 1 of the

18  year in which enacted.

19

20            *****************************************

21                       LEGISLATIVE SUMMARY

22
      Modifies the disclosure form for motor vehicle leases.
23    Provides that specified terms in the form need not be
      included if the terms in the Federal Consumer Leasing Act
24    are provided. Amends the definitions of "collateral
      charges," "lease price," and "lessee cost" for purposes
25    of ch. 681, F.S., relating to motor vehicle sales
      warranties.
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