HB 0053B 2003
1	A bill to be entitled
2	An act relating to motor vehicle dealer licenses; amending
3	s. 320.642, F.S.; revising conditions under which an
4	application to establish an additional motor vehicle
5	dealership or permit the relocation of an existing motor
6	vehicle dealer to a location within a community or
7	territory where the same line-make vehicle is presently
8	represented by a franchised motor vehicle dealer or
9	dealers shall be denied; providing for construction of the
10	act in pari materia with laws enacted during the 2003
11	Regular Session or the 2003 Special Session A of the
12	Legislature; providing an effective date.
13
14	Be It Enacted by the Legislature of the State of Florida:
15
16	Section 1. Subsection (2) of section 320.642, Florida
17	Statutes, is amended to read:
18	320.642 Dealer licenses in areas previously served;
19	procedure.--
20	(2)(a) An application for a motor vehicle dealer license
21	in any community or territory shall be denied when:
22	1. A timely protest is filed by a presently existing
23	franchised motor vehicle dealer with standing to protest as
24	defined in subsection (3); and
25	2. The licensee fails to show good cause. In order to show
26	good cause, the licensee must establish that:
27	a.The existing franchised dealer or dealers who register
28	new motor vehicle retail sales or retail leases of the same
29	line-make in the community or territory of the proposed
30	dealership are not providing adequate representation of such
31	line-make motor vehicles in such community or territory; and
32	b. There will be no significant adverse impact on the
33	profitability or vehicle sales of the protesting dealer or
34	dealers.
35
36	The burden of proof in establishing inadequate representation
37	shall be on the licensee.
38	(b) In determining whether the licensee has met its burden
39	of proof in establishing inadequate representationexisting
40	franchised motor vehicle dealer or dealers are providing
41	adequate representation in the community or territory for the
42	line-make, the department shallmay consider evidence, including
43	which may include, but isnot limited to:
44	1. The impact of the establishment of the proposed or
45	relocated dealer on the consumers, public interest, existing
46	dealers, and the licensee; provided, however, that financial
47	impact may only be considered with respect to the protesting
48	dealer or dealers. Notwithstanding any other provision of this
49	section, if the licensee fails to establish that there will be
50	no significant adverse impact on the profitability of vehicle
51	sales of the protesting dealer or dealers, the application shall
52	be denied.
53	2. The size and permanency of investment reasonably made
54	and reasonable obligations incurred by the existing dealer or
55	dealers to perform their obligations under the dealer agreement.
56	3. The reasonably expected market penetration of the line-
57	make motor vehicle for the community or territory involved,
58	after consideration of all factors which may affect said
59	penetration, including, but not limited to, demographic factors
60	such as age, income, education, size class preference, product
61	popularity, import penetration,retail lease transactions, or
62	other factors affecting sales to consumers of the community or
63	territory. Market penetration shall not be measured by
64	comparison to a community or territory that is not comparable to
65	the community or territory of the proposed dealership with
66	respect to the demographic factors set forth in this
67	subparagraph, and such comparison area shall not be smaller in
68	size, as measured by geographic area and retail registrations,
69	than the community or territory of the proposed dealership.
70	4. Any actions by the licensees in denying its existing
71	dealer or dealers of the same line-make the opportunity for
72	reasonable growth, market expansion, or relocation, including
73	the availability of line-make vehicles in keeping with the
74	reasonable expectations of the licensee in providing an adequate
75	number of dealers in the community or territory.
76	5. Any attempts by the licensee to coerce the existing
77	dealer or dealers into consenting to additional or relocated
78	franchises of the same line-make in the community or territory.
79	6. Distance, travel time, traffic patterns, and
80	accessibility between the existing dealer or dealers of the same
81	line-make and the location of the proposed additional or
82	relocated dealer.
83	7. Whether benefits to consumers will likely occur from
84	the establishment or relocation of the dealership which the
85	protesting dealer or dealers prove cannot be obtained by other
86	geographic or demographic changes or expected changes in the
87	community or territory.
88	8. Whether the protesting dealer or dealers are in
89	substantial compliance with their dealer agreement.
90	9. Whether there is adequate interbrand and intrabrand
91	competition with respect to said line-make in the community or
92	territory and adequately convenient consumer care for the motor
93	vehicles of the line-make, including the adequacy of sales and
94	service facilities.
95	10. Whether the establishment or relocation of the
96	proposed dealership appears to be warranted and justified based
97	on economic and marketing conditions pertinent to dealers
98	competing in the community or territory, including anticipated
99	future changes.
100	11. The volume of registrations and service business
101	transacted by the existing dealer or dealers of the same line-
102	make in the relevant community or territory of the proposed
103	dealership.
104	Section 2. If any law amended by this act was also amended
105	by a law enacted at the 2003 Regular Session of the Legislature
106	or the 2003 Special Session A of the Legislature, such laws
107	shall be construed as if they had been enacted at the same
108	session of the Legislature, and full effect shall be given to
109	each if possible.
110	Section 3. This act shall take effect upon becoming a law.