Amendment

Bill No. 1187

Amendment No. 159777

CHAMBER ACTION
Senate		House
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1	Representative Poppell offered the following:
2
3	Amendment (with title amendment)
4	Remove the entire body and insert:
5	Section 1.  Section 686.40, Florida Statutes, is amended to
6	read:
7	686.40  Agricultural Farm Equipment Manufacturers and
8	Dealers Act; short title.--Sections 686.40-686.418 shall be
9	known by the popular name and may be cited as the "Agricultural
10	Farm Equipment Manufacturers and Dealers Act."
11	Section 2.  Subsection (1) of section 686.401, Florida
12	Statutes, is amended to read:
13	686.401  Legislative finding and intent; construction of
14	ss. 686.40-686.418.--
15	(1)  The Legislature finds and declares that the
16	distribution and sale of tractors and farm equipment primarily
17	designed for or used in agriculture in this state vitally
18	affects the general economy of the state, the public interest,
19	and the public welfare and that, in the exercise of its police
20	power, it is necessary to regulate the conduct of tractor and
21	farm equipment manufacturers, distributors, and dealers of such
22	equipment, and their representatives, doing business in this
23	state in order to prevent fraud, unfair business practices,
24	unfair methods of competition, impositions, and other abuses
25	upon its citizens.
26	Section 3.  Section 686.402, Florida Statutes, is amended
27	to read:
28	686.402  Definitions of terms used in ss. 686.40-
29	686.418.--In construing ss. 686.40-686.418, unless the context
30	In construing ss. 686.40-686.418, unless the context otherwise
31	requires, the word, phrase, or term:
32	(1)(16)  "Tractor or farm equipment Dealer" means a person
33	who sells, solicits, or advertises the sale of new and used
34	tractors and farm equipment to the consuming public, but does
35	not include:
36	(a)  A receiver, trustee, administrator, executor, personal
37	representative, guardian, or other person appointed by or acting
38	under judgment, decree, or order of any court.
39	(a)(b)  A public officer while performing her or his duties
40	as such officer.
41	(b)(c)  A person making casual or isolated sales of her or
42	his own tractors or items of farm equipment not subject to sales
43	tax under the laws of this state.
44	(c)(d)  A person engaged in the auction sale of tractors
45	and farm equipment.
46	(d)(e)  A dealer in used tractors and farm equipment.
47	(e)  A mass-market retailer.
48	(2)  "Dealership" means the business of selling or
49	attempting to effect the sale by a dealer of new equipment or
50	the right conferred by written or oral agreement with the
51	manufacturer, distributor, or wholesaler, for a definite or
52	indefinite period of time, to sell or attempt to effect the sale
53	of new equipment.
54	(3)(1)  "Distributor" or "wholesaler" means any person,
55	firm, association, corporation, or company that sells or
56	distributes new tractors and farm equipment to tractor or farm
57	equipment dealers and that maintains distributor representatives
58	within this state.
59	(4)(2)  "Distributor branch" means a branch office
60	maintained by a distributor or wholesaler which sells or
61	distributes new tractors and farm equipment to tractor or farm
62	equipment dealers.
63	(5)(3)  "Distributor representative" means a representative
64	employed by a distributor, distributor branch, or wholesaler.
65	(6)  "Farm Equipment" means those tractors or farm
66	implements which are primarily designed for or used use in
67	agriculture. Equipment designed for or used in off-road
68	construction, mining, utility, and industrial purposes is not
69	included in this definition.
70	(7)(4)  "Factory branch" means a branch office maintained
71	by a manufacturer which manufactures and assembles tractors and
72	farm equipment for sale to distributors of tractors or to farm
73	equipment dealers or which is maintained for directing and
74	supervising the representatives of the manufacturer.
75	(8)(5)  "Factory representative" means a representative
76	employed by a manufacturer or factory branch for the purpose of
77	making or promoting the sale of tractors and farm equipment or
78	for supervising, servicing, introducing, or contracting with
79	tractor or farm equipment dealers or prospective dealers.
80	(9)(7)  "Franchise" means a contract or agreement, either
81	expressed or implied, whether oral or written, for a definite or
82	indefinite period of time in which a manufacturer, distributor,
83	or wholesaler grants to a tractor or farm equipment dealer
84	permission to use a trade name, service mark, trademark, or
85	related characteristic and in which there is a common interest
86	or community of interest in the marketing of tractors or farm
87	equipment or services related thereto at wholesale or retail,
88	whether by leasing, sale, or otherwise.
89	(10)(8)  "Franchisee" means a tractor or farm equipment
90	dealer to whom a franchise is offered or granted.
91	(11)(9)  "Franchisor" means a manufacturer, distributor, or
92	wholesaler who grants a franchise to a tractor or farm equipment
93	dealer.
94	(12)(10)  "Fraud" means and includes actual fraud or
95	constructive fraud as normally defined, in addition to the
96	following:
97	(a)  A misrepresentation in any manner, whether
98	intentionally false or arising from gross negligence, of a
99	material fact.
100	(b)  A promise or representation not made honestly and in
101	good faith.
102	(c)  An intentional failure to disclose a material fact.
103	(d)  Any artifice employed to deceive another.
104	(13)(11)  "Manufacturer" means any person engaged in the
105	business of manufacturing or assembling new and unused tractors
106	and farm equipment.
107	(14)(12)  "New tractor or farm equipment" means a tractor
108	or item of farm equipment which has not been previously sold to
109	and put into regular use or service by any person, except a
110	distributor, wholesaler, or tractor or farm equipment dealer for
111	resale.
112	(15)(13)  "Person" means a natural person, corporation,
113	association, partnership, trust, or other business entity and,
114	in the case of a business entity, includes any other entity in
115	which the business entity has a majority interest or which it
116	effectively controls, as well as the individual officers,
117	directors, and other persons in active control of the activities
118	of each such entity.
119	(16)  "Relevant market area" means the geographic area for
120	which a dealer is assigned responsibility for selling or
121	soliciting or advertising the sale of equipment under the terms
122	of a franchise.
123	(17)(14)  "Sale" means and includes the issuance, transfer,
124	agreement for transfer, exchange, pledge, hypothecation, or
125	mortgage in any manner or form, whether by transfer in trust or
126	otherwise, of any tractor or item of farm equipment or interest
127	therein, or of any franchise related thereto, for a
128	consideration and any option, subscription or other contract, or
129	solicitation, looking to a sale, or offer or attempt to sell in
130	any form, whether in oral or written form for a consideration.
131	(18)  "Termination" means the termination, cancellation,
132	nonrenewal, or noncontinuation of a contract or agreement.
133	(19)(15)  "Tractor" means a vehicle that is operated
134	principally upon a farm, grove, or orchard in connection with
135	agriculture agricultural or horticultural pursuits.
136	Section 4.  Section 686.403, Florida Statutes, is amended
137	to read:
138	686.403  Application of ss. 686.40-686.418.--
139	(1)  Any person who engages directly or indirectly in
140	purposeful agreements or contracts within this state in
141	connection with the sale or advertising for sale of new
142	equipment tractors and farm machinery and parts is subject to
143	ss. 686.40-686.418 and to the jurisdiction of the courts of this
144	state for violations of such sections in accordance with the
145	provisions of the laws of this state.
146	(2)  Sections 686.40-686.418 apply to all written or oral
147	agreements between a manufacturer, distributor, or wholesaler
148	with a tractor or farm equipment dealer, including, but not
149	limited to, the franchise offering; the franchise agreement;
150	sales of goods, services, and advertising; leases or mortgages
151	of real or personal property; promises to pay; security
152	interests; pledges; insurance contracts; advertising contracts;
153	construction or installation contracts; servicing contracts; and
154	all other such agreements in which the manufacturer,
155	distributor, or wholesaler has any direct or indirect interest.
156	(3)  Sections 686.40-686.418 apply to all continuing
157	contracts now in effect which have no expiration date and to all
158	other contracts entered into, renewed, or amended after July 1,
159	2004 or renewed after July 1, 1984.
160	Section 5.  Section 686.405, Florida Statutes, is amended
161	to read:
162	686.405  Warranty agreements; claims; compensation of
163	dealers.--
164	(1)  Every manufacturer, distributor, wholesaler, factory
165	branch or division, distributor branch or division, or wholesale
166	branch or division shall provide a fair and reasonable warranty
167	agreement on any new tractor or item of farm equipment which it
168	sells and shall fairly compensate each of its tractor or farm
169	equipment dealers for labor and parts used in fulfilling such
170	warranty agreements.
171	(2)(a)  Each claim for payment under such warranty
172	agreements made by a tractor or farm equipment dealer for such
173	labor and parts shall be paid within 30 days following its
174	approval. Each such claim shall be either approved or
175	disapproved within 30 days after its receipt. When any such
176	claim is disapproved, the tractor or farm equipment dealer who
177	submitted it shall be notified in writing of such disapproval
178	within such period, and such notice shall state the specific
179	grounds upon which the disapproval is based.
180	(b)  Any special handling of claims required of the dealer
181	by the manufacturer, distributor, wholesaler, factory branch or
182	division, distributor branch or division, or wholesale branch or
183	division, which handling is not uniformly required of all
184	dealers of that make, may be enforced only after 30 days' notice
185	in writing to the dealer and upon good and sufficient reason.
186	(3)(a)  The minimum lawful basis for compensating a dealer
187	for warranty work, as provided for in this section, shall be
188	calculated for labor in accordance with the reasonable and
189	customary amount of time required to complete such work,
190	expressed in hours and fractions of hours multiplied by the
191	dealer's established hourly retail labor rate. Prior to filing a
192	claim for reimbursement for warranty work, the dealer must
193	notify the applicable manufacturer, distributor, or wholesaler
194	of his or her hourly retail labor rate.
195	(b)  The minimum lawful basis for compensation to the
196	dealer for parts used in fulfilling such warranty work shall be
197	at the dealer's costs for such parts, including all freight and
198	handling charges applicable to such parts, plus 15 percent of
199	the sum of such costs and charges to reimburse the dealer's
200	reasonable cost of doing business and providing such warranty
201	service on behalf of the manufacturer.
202	(4)  It shall be unlawful to deny, delay payment for, or
203	restrict a claim by a dealer for warranty service or parts,
204	incentives, hold-backs, or other amounts owed to a dealer unless
205	the denial, delay, or restriction is the direct result of a
206	material defect in the claim that affects its validity.
207	(5)  A manufacturer, distributor, or wholesaler may audit
208	warranty claims submitted by its dealers only for a period of up
209	to 1 year following payment of such claims and may charge back
210	to its dealers only those amounts based upon paid claims shown
211	by the audit to be invalid. However, this limitation shall not
212	apply in any case of fraudulent claims.
213	(6)  Any audit of a dealer by or on behalf of a
214	manufacturer, distributor, or wholesaler for sales incentives,
215	service incentives, rebates, or other forms of incentive
216	compensation shall be completed not later than 12 months after
217	the date of termination of such incentive compensation program.
218	However, this limitation shall not apply in any case of
219	fraudulent claims.
220	Section 6.  Section 686.406, Florida Statutes, is amended
221	to read:
222	686.406  Parts; availability; return.--
223	(1)  Every manufacturer shall specify, and every dealer
224	shall provide and fulfill, reasonable predelivery and
225	preparation obligations for its tractors and farm equipment
226	prior to delivery of the tractors and equipment to retail
227	purchasers.
228	(2)  Every manufacturer shall provide for the availability
229	of repair parts throughout the reasonable useful life of any
230	tractor or farm equipment sold.
231	(3)  Every manufacturer or distributor shall provide to
232	each of its her or his dealers, annually, an opportunity to
233	return a portion of its their surplus parts inventories for
234	credit. The surplus procedure shall be administered as follows:
235	(a)  The manufacturer or distributor may specify, and
236	thereupon notify each of its her or his dealers of, a time
237	period of at least 60 days' duration during which each of its
238	the dealers may submit its their surplus parts list lists and
239	return the their surplus parts to the manufacturer or
240	distributor.
241	(b)  If a manufacturer or distributor has not notified a
242	dealer of a specific time period for returning surplus parts
243	within the preceding 12 months, the manufacturer or distributor
244	she or he shall authorize and allow the dealer's surplus parts
245	return request within 30 days after receipt of such request from
246	such the dealer.
247	(c)  A manufacturer or distributor must allow surplus parts
248	return authority on a dollar value of parts equal to 6 percent
249	of the total dollar value of parts purchased from the
250	manufacturer or distributor by the dealer during the 12-month
251	period immediately preceding the notification to such the dealer
252	by the manufacturer or distributor of the surplus parts return
253	program, or the month such the dealer's return request is made,
254	whichever is applicable. However, the dealer may, at her or his
255	option, elect to return a dollar value of her or his surplus
256	parts equal to less than 6 percent of the total dollar value of
257	parts purchased by such the dealer from the manufacturer or
258	distributor during the preceding 12-month period as provided
259	herein.
260	(d)  No obsolete or superseded part may be returned, but
261	any part listed in the manufacturer's, distributor's, or
262	wholesaler's current returnable parts list at the date of
263	notification of the surplus parts return program by the
264	manufacturer or distributor to the dealer, or the date of the
265	dealer's parts return request, whichever is applicable, is
266	eligible for return and credit specified. However, returned
267	parts must be in new and unused condition and must have been
268	purchased from the manufacturer, distributor, or wholesaler to
269	whom they are returned.
270	(e)  The minimum lawful credit to be allowed for returned
271	parts is 85 percent of the wholesale cost of the parts as listed
272	in the manufacturer's, distributor's, or wholesaler's current
273	returnable parts list at the date of the notification of the
274	surplus parts return program by the manufacturer, wholesaler, or
275	distributor to the dealer, or the date of the dealer's parts
276	return request, whichever is applicable.
277	(f)  Applicable credit must be issued or furnished by the
278	manufacturer or distributor to the dealer within 60 days after
279	receipt of her or his returned parts.
280	(g)  The packing and return freight expense incurred in any
281	return of surplus parts pursuant to the terms of this section
282	shall be borne by the dealer.
283	Section 7.  Section 686.407, Florida Statutes, is amended
284	to read:
285	686.407  Repurchase of inventory upon termination of
286	franchise agreement; establishment or relocation of dealership;
287	sale or lease of new equipment.--
288	(1)  Whenever any tractor or farm equipment dealer enters
289	into a franchise agreement with a manufacturer, distributor, or
290	wholesaler in which agreement the dealer agrees to maintain an
291	inventory of tractors, farm equipment, or repair parts and the
292	franchise is subsequently terminated, the manufacturer,
293	distributor, or wholesaler shall repurchase the inventory as
294	provided in this section. However, the dealer may keep the
295	inventory if he or she desires. If the dealer has any
296	outstanding debts to the manufacturer, distributor, or
297	wholesaler, then the repurchase amount may be credited to the
298	dealer's account.
299	(2)  If the dealer decides not to keep the inventory, the
300	manufacturer, distributor, or wholesaler shall repurchase that
301	inventory previously purchased from such manufacturer,
302	distributor, or wholesaler him or her and held by the dealer on
303	the date of termination of the contract. The manufacturer,
304	distributor, or wholesaler shall pay:
305	(a)  One hundred percent of the actual dealer cost,
306	including freight, of all new, unsold, undamaged, and complete
307	tractors, or other items of farm equipment which is are
308	resalable, less a reasonable allowance for depreciation due to
309	usage by the dealer and deterioration directly attributable to
310	weather conditions at the dealer's location; and
311	(b)  Eighty-five percent of the current wholesale price of
312	all new, unused, and undamaged repair parts and accessories
313	which are listed in the manufacturer's, distributor's, or
314	wholesaler's current returnable parts list. The manufacturer,
315	distributor, or wholesaler shall also pay the dealer 6 percent
316	of the current wholesale price on all new, unused, and undamaged
317	repair parts returned to cover the cost of handling, packing,
318	and loading. However, the manufacturer, distributor, or
319	wholesaler shall have the option of performing the handling,
320	packing, and loading in lieu of paying the 6-percent sum imposed
321	in this subsection for these services; and, in this event, after
322	receipt by the dealer of the full repurchase amount as provided
323	in this section, the dealer shall make available to the
324	manufacturer, distributor, or wholesaler, at the dealer's
325	address or at the places at which the tractors and equipment is
326	are located, all tractors and items of farm equipment previously
327	purchased by the dealer.
328	(3)  Upon payment within a reasonable time of the
329	repurchase amount to the dealer, the title and right of
330	possession to the repurchased inventory shall transfer or be
331	transferred to the manufacturer, distributor, or wholesaler, as
332	the case may be.
333	(4)  The provisions of this section do not require the
334	repurchase from a dealer of:
335	(a)  Any repair part which has a limited storage life or is
336	otherwise subject to deterioration.
337	(a)(b)  Any single repair part which is priced as a set of
338	two or more items.
339	(b)(c)  Any repair part which because of its condition is
340	not resalable as a new part without repackaging or
341	reconditioning.
342	(c)(d)  Any inventory for which the dealer is unable to
343	furnish evidence, reasonably satisfactory to the manufacturer,
344	distributor, or wholesaler, of good title, free and clear of all
345	claims, liens, and encumbrances.
346	(d)(e)  Any inventory which the dealer desires to keep, if
347	the dealer has a contractual right to keep it.
348	(e)(f)  Any tractor or item of farm equipment which is not
349	in new, unused, undamaged, and complete condition.
350	(f)(g)  Any tractor or item of farm equipment which has
351	been used by the dealer or has deteriorated because of weather
352	conditions at the dealer's location unless the manufacturer,
353	distributor, or wholesaler receives a reasonable allowance for
354	such usage or deterioration.
355	(g)(h)  Any repair parts which are not in new, unused, and
356	undamaged condition.
357	(h)(i)  Any inventory which was ordered by the dealer on or
358	after the date of receipt of the notification of termination of
359	the franchise or contractual agreement.
360	(i)(j)  Any inventory which was acquired by the dealer from
361	any source other than the manufacturer, distributor, or
362	wholesaler.
363	(5)  If any manufacturer, distributor, or wholesaler fails
364	or refuses to repurchase any inventory covered under the
365	provisions of this section within 60 days after termination of a
366	dealer's contract, he or she is civilly liable for 100 percent
367	of the current wholesale price of the inventory plus any freight
368	charges paid by the dealer, such the dealer's reasonable
369	attorney's fees, court costs, and interest on the current
370	wholesale price computed at the legal interest rate provided in
371	s. 687.01 from the 61st day after termination.
372	(6)  A manufacturer, distributor, or wholesaler that
373	intends to establish a new dealership or to relocate a current
374	dealership for a particular product line or make of equipment
375	within the relevant market area of an existing dealership of the
376	same product line or make of equipment shall give written notice
377	of such intent by certified mail or overnight delivery, return
378	receipt requested, to such existing dealership. The notice shall
379	be delivered at least 180 days prior to establishment of a new
380	dealership or relocation of a current dealership. The notice
381	shall include:
382	(a)  The specific location of the additional or relocated
383	dealership.
384	(b)  The date on or after which the additional or relocated
385	dealership will commence operation at the new location.
386	(c)  The identity of all existing dealerships in whose
387	relevant market area the new or relocated dealership is to be
388	located.
389	(d)  The names of the dealer and principals in the new or
390	relocated dealership.
391	(7)  A manufacturer, distributor, or wholesaler may sell or
392	lease new equipment for use within the state. If the
393	manufacturer, distributor, or wholesaler makes a direct sale or
394	lease of equipment, the manufacturer, distributor, or wholesaler
395	shall pay to the dealer located within the relevant market area
396	a commission of not less than 7 percent of the sale or lease
397	price of the equipment. This payment shall cover any
398	compensation to the dealer for the cost of customary preparation
399	and delivery as well as any commission on the sale or lease.
400	This compensation must be paid or credited in the same manner as
401	provided in this section. The manufacturer, distributor, or
402	wholesaler, if practicable, shall utilize the dealer in the
403	relevant market area for preparation and delivery. For purposes
404	of this subsection, equipment is considered to be used primarily
405	within a dealer's relevant market area if the new equipment is
406	located or housed at a user's facility located within the
407	relevant market area. This subsection shall not be applicable to
408	any liquidation or sale of equipment which has been ordered by
409	any court.
410	Section 8.  Section 686.409, Florida Statutes, is amended
411	to read:
412	686.409  Compensation for inventory upon refusal to renew,
413	termination of, or restriction on transfer of a franchise.--It
414	is unlawful for the manufacturer, distributor, wholesaler, or
415	franchisor, without due cause, to fail to renew a franchise on
416	terms then equally available to all of its her or his tractor or
417	farm equipment dealers, to terminate a franchise, or to restrict
418	the transfer of a franchise unless the franchisee receives fair
419	and reasonable compensation for the inventory of the business.
420	As used in this section, the term "due cause" shall be construed
421	in accordance with the definition of due cause contained in s.
422	686.413(3)(c)2.
423	Section 9.  Section 686.413, Florida Statutes, is amended
424	to read:
425	686.413  Unlawful acts and practices.--Unfair methods of
426	competition and unfair or deceptive acts or practices in the
427	conduct of the manufacturing, distribution, wholesaling,
428	franchising, sale, and advertising of tractors and farm
429	equipment are declared to be unlawful.
430	(1)  It is deemed a violation of this section for any
431	manufacturer, factory branch, factory representative,
432	distributor, distributor branch, distributor representative,
433	wholesaler, or tractor or farm equipment dealer to engage in any
434	action which is arbitrary, capricious, in bad faith, or
435	unconscionable and which causes damage in terms of law or equity
436	to any of the parties or to the public.
437	(2)  It is deemed a violation of this section for a
438	manufacturer, factory branch or division, distributor,
439	distributor branch or division, wholesaler, or wholesale branch
440	or division, or officer, agent, or other representative thereof,
441	to coerce, compel, or attempt to coerce or compel any tractor or
442	farm equipment dealer:
443	(a)  To order or accept delivery of any tractor or item of
444	farm equipment, parts or accessories therefor, or other
445	commodity or commodities which such tractor or farm equipment
446	dealer has not voluntarily ordered.
447	(b)  To order or accept delivery of any tractor or farm
448	equipment with special features, accessories, or equipment not
449	included in the base list price of such tractor or farm
450	equipment as publicly advertised by the manufacturer of the
451	tractor or equipment.
452	(3)  It is deemed a violation of this section for a
453	manufacturer, factory branch or division, distributor,
454	distributor branch or division, wholesaler, or wholesale branch
455	or division, or officer, agent, or other representative thereof:
456	(a)  To refuse to deliver to any tractor or farm equipment
457	dealer having a franchise or contractual agreement for the
458	retail sale of new tractors and farm equipment sold or
459	distributed by such manufacturer, factory branch or division,
460	distributor branch or division, or wholesale branch or division,
461	in reasonable quantities and within a reasonable time after
462	receipt of the dealer's order, any tractor or item of farm
463	equipment covered by such franchise or contract specifically
464	advertised or represented by such manufacturer, factory branch
465	or division, distributor, distributor branch or division,
466	wholesaler, or wholesale branch or division to be available for
467	immediate delivery. However, the failure to deliver any such
468	tractor or item of farm equipment is not considered a violation
469	of this section if such failure is due to a prudent and
470	reasonable restriction on the extension of credit by the
471	franchisor to the dealer, an act of God, a work stoppage or
472	delay due to a strike or labor difficulty, a bona fide shortage
473	of materials, a freight embargo, or another cause over which the
474	manufacturer, distributor, or wholesaler, or any agent thereof,
475	has no control whatsoever.
476	(b)  To coerce, compel, or attempt to coerce or compel any
477	tractor or farm equipment dealer to enter into any agreement,
478	whether written or oral, supplementary to an existing franchise
479	with such manufacturer, factory branch or division, distributor,
480	distributor branch or division, wholesaler, or wholesale branch
481	or division, or officer, agent, or other representative thereof;
482	or to do any other act prejudicial to such dealer by threatening
483	to cancel any franchise or contractual agreement existing
484	between such manufacturer, factory branch or division,
485	distributor, distributor branch or division, wholesaler, or
486	wholesale branch or division and such dealer. However, notice in
487	good faith to any tractor or farm equipment dealer of such
488	dealer's violation or breach of any terms or provisions of such
489	franchise or contractual agreement does not constitute a
490	violation of this section if such notice is in writing and is
491	mailed by registered or certified mail to such dealer at her or
492	his current business address and such notice contains the
493	specific facts as to the dealer's violation or breach of such
494	franchise or contractual agreement.
495	(c)1.  To terminate or cancel the franchise or selling
496	agreement of any tractor or farm equipment dealer without due
497	cause, as defined in subparagraph 2. The termination nonrenewal
498	of a franchise or selling agreement, without due cause,
499	constitutes an unfair termination or cancellation, regardless of
500	the specified time period of such franchise or selling
501	agreement. Except when the ground for such termination or
502	cancellation falls within sub-subparagraph 2.c., such
503	manufacturer, factory branch or division, distributor,
504	distributor branch or division, wholesaler, or wholesale branch
505	or division, or officer, agent, or other representative thereof,
506	shall notify a tractor or farm equipment dealer in writing of
507	the termination or cancellation of the franchise or selling
508	agreement of such dealer at least 180 90 days before the
509	effective date of the termination or cancellation, stating the
510	specific ground for such termination or cancellation. In no
511	event shall the contractual term of any such franchise or
512	selling agreement expire, without the written consent of the
513	tractor or farm equipment dealer involved, prior to the
514	expiration of at least 180 90 days following such written
515	notice. During the 180-day 90-day period, either party may, in
516	appropriate circumstances, petition a court of competent
517	jurisdiction to modify such 180-day 90-day stay or to extend it
518	pending a final determination of such proceeding on the merits.
519	The court shall have authority to grant temporary, preliminary,
520	and final injunctive relief. Should a dealer cure the claimed
521	deficiency within the 180-day period, the franchise or selling
522	agreement shall not be terminated.
523	2.  As used in this subparagraph, tests for determining
524	what constitutes due cause for a manufacturer or distributor to
525	terminate, cancel, or refuse to renew a franchise agreement
526	include whether the dealer:
527	a.  Has transferred an ownership interest in the dealership
528	without the manufacturer's or distributor's consent;
529	b.  Has made a material misrepresentation in applying for
530	or in acting under the franchise agreement;
531	c.  Has filed a voluntary petition in bankruptcy or has had
532	an involuntary petition in bankruptcy filed against her or him
533	which has not been discharged within 60 days after the filing,
534	is in default under the provisions of a security agreement in
535	effect with the manufacturer or distributor, or is in
536	receivership;
537	d.  Has engaged in unfair business or trade practices;
538	e.  Has inadequately represented the manufacturer's or
539	distributor's products with respect to sales, service, or
540	warranty work;
541	f.  Has inadequate and insufficient sales and service
542	facilities and personnel;
543	g.  Has failed to comply with an applicable federal, state,
544	or local licensing law;
545	h.  Has been convicted of a crime, the effect of which
546	would be detrimental to the manufacturer, distributor, or
547	dealership;
548	i.  Has failed to operate in the normal course of business
549	for 10 consecutive business days or has terminated her or his
550	business;
551	j.  Has relocated her or his place of business without the
552	manufacturer's or distributor's consent; or
553	k.  Has failed to comply with the terms that are not in
554	conflict with this chapter or the terms of the dealership or
555	franchise agreement.
556	3.  Before termination of the franchise or selling
557	agreement because of the dealer's failure to meet marketing
558	criteria or market penetration, the manufacturer, factory branch
559	or division, distributor, distributor branch or division,
560	wholesaler, or wholesale branch or division, or officer, agent,
561	or other representative thereof, shall provide written notice of
562	such intention at least 1 year in advance. After such notice,
563	the manufacturer or other entity issuing the notice shall make
564	good faith efforts to work with the dealer to gain the desired
565	market share, including, without limitation, reasonably making
566	available to the dealer an adequate inventory of new equipment
567	and parts and competitive marketing programs. The manufacturer
568	or other entity, at the end of the 1-year notice period, may
569	terminate or elect not to renew the agreement only upon further
570	written notice specifying the reasons for determining that the
571	dealer failed to meet reasonable marketing criteria or market
572	penetration. Such written notice must specify that termination
573	is effective 90 days from the date of the notice. Either party
574	may petition the court pursuant to subparagraph (c)1. for the
575	relief specified in such subparagraph. Should a dealer cure the
576	claimed deficiency within the 90-day period, the franchise or
577	selling agreement shall not be terminated.
578	(d)  To resort to or use any false or misleading
579	advertisement in connection with its her or his business as such
580	manufacturer, factory branch or division, distributor,
581	distributor branch or division, wholesaler, or wholesale branch
582	or division, or officer, agent, or other representative thereof.
583	(e)  To offer to sell or to sell any new tractor or item of
584	farm equipment, or parts or accessories therefor, to any other
585	tractor or farm equipment dealer at a lower actual price
586	therefor than the actual price offered to any other tractor or
587	farm equipment dealer for the same model tractor or farm
588	equipment identically equipped or to utilize any device,
589	including, but not limited to, sales promotion plans or
590	programs, which results in such lesser actual price or results
591	in a fixed price predetermined solely by the manufacturer or
592	distributor. However, the provisions of this paragraph do not
593	apply to sales to a tractor or farm equipment dealer for resale
594	to any unit or agency of the United States Government, the state
595	or any of its political subdivisions, or any municipality
596	located within this state. Further, the provisions of this
597	paragraph do not apply so long as a manufacturer, distributor,
598	or wholesaler, or any agent thereof, sells or offers to sell
599	such new tractor or farm equipment, parts, or accessories to all
600	of its her or his franchised tractor or farm equipment dealers
601	at an equal price.
602	(f)  To willfully discriminate, either directly or
603	indirectly, in price, programs, or terms of sale offered to
604	franchisees, when the effect of such discrimination may be to
605	substantially lessen competition or to give to one holder of a
606	franchise any economic, business, or competitive advantage not
607	offered to all holders of the same or similar franchise.
608	(g)  To prevent or attempt to prevent, by contract or
609	otherwise, any tractor or farm equipment dealer from changing
610	the capital structure of her or his dealership or the means by
611	or through which the dealer finances the operation of her or his
612	dealership, provided the dealer at all times meets any
613	reasonable capital standards agreed to between the dealership
614	and the manufacturer, distributor, or wholesaler and provided
615	such change by the dealer does not result in a change in the
616	executive management of the dealership.
617	(h)  To prevent or attempt to prevent, by contract or
618	otherwise, any tractor or farm equipment dealer or any officer,
619	member partner, or stockholder of any tractor or farm equipment
620	dealer from selling or transferring any part of the interest of
621	any of them to any other person or persons or party or parties.
622	However, no dealer, officer, partner, or stockholder has the
623	right to sell, transfer, or assign the franchise or power of
624	management or control thereunder without the written consent of
625	the manufacturer, distributor, or wholesaler, except that such
626	consent may not be unreasonably withheld.
627	(i)  To impose, directly or indirectly, unreasonable
628	restrictions on the dealer relative to transfer, renewal,
629	termination, location, or site control.
630	(j)  To prevent a dealer from having an investment in or
631	holding a dealership contract for the sale of competing product
632	lines or makes of equipment, or to require a dealer to provide
633	separate facilities for competing product lines or makes of
634	equipment.
635	(k)(i)  To obtain money, goods, services, anything of
636	value, or any other benefit from any other person with whom the
637	tractor or farm equipment dealer does business or employs on
638	account of or in relation to the transactions between the
639	dealer, the franchisor, and such other person.
640	(l)(j)  To require a tractor and farm equipment dealer to
641	assent to a release, assignment, novation, waiver, or estoppel
642	which would relieve any person from liability imposed by ss.
643	686.40-686.418.
644	(4)  It is deemed a violation of this section for a tractor
645	or farm equipment dealer:
646	(a)  To require a retail purchaser of a new tractor or item
647	of farm equipment, as a condition of sale and delivery of the
648	tractor or equipment, also to purchase special features,
649	appliances, equipment, parts, or accessories not desired or
650	requested by the purchaser. However, this prohibition does not
651	apply to special features, appliances, equipment, parts, or
652	accessories which are already installed when the tractor or item
653	of farm equipment is received by the dealer from the
654	manufacturer, distributor, or wholesaler of such tractor or
655	equipment.
656	(b)  To represent and sell as new and unused any tractor or
657	item of farm equipment which has been used and operated for
658	demonstration or other purposes without stating to the purchaser
659	prior to the sale the approximate amount of use the equipment
660	tractor or item of farm machinery has experienced or undergone.
661	(c)  To resort to or use any false or misleading
662	advertisement in connection with her or his business as such
663	tractor or farm equipment dealer.
664	Section 10.  Section 686.418, Florida Statutes, is amended
665	to read:
666	686.418  Effect of act on other remedies.--Sections 686.40-
667	686.418 are supplemental to and do not preempt local ordinances
668	dealing with prohibited or unlawful conduct in the
669	manufacturing, distribution, wholesaling, advertising, or sale
670	of tractors and other items of farm equipment if such ordinances
671	are not inconsistent with such sections.
672	Section 11.  Subsection (5) of section 316.515, Florida
673	Statutes, is amended to read:
674	316.515  Maximum width, height, length.--
675	(5)  IMPLEMENTS OF HUSBANDRY, AGRICULTURAL TRAILERS, SAFETY
676	REQUIREMENTS.--Notwithstanding any other provisions of law,
677	straight trucks, agricultural tractors, and cotton module
678	movers, not exceeding 50 feet in length, or any combination of
679	up to and including three implements of husbandry including the
680	towing power unit, and any single agricultural trailer, with a
681	load thereon or any agricultural implements attached to a towing
682	power unit not exceeding 130 inches in width, or a self-
683	propelled agricultural implement or an agricultural tractor not
684	exceeding 130 inches in width, is authorized for the purpose of
685	transporting peanuts, grains, soybeans, cotton, hay, straw, or
686	other perishable farm products from their point of production to
687	the first point of change of custody or of long-term storage,
688	and for the purpose of returning to such point of production, or
689	for the purpose of moving such tractors, movers, and implements
690	from one point of agricultural production to another, by a
691	person engaged in the production of any such product or custom
692	hauler, if such vehicle or combination of vehicles otherwise
693	complies with this section. Such vehicles shall be operated in
694	accordance with all safety requirements prescribed by law and
695	Department of Transportation rules. The Department of
696	Transportation may issue overlength permits for cotton module
697	movers greater than 50 feet but not more than 55 feet in overall
698	length.
699	Section 12.  This act shall take effect July 1, 2004.
700
701	================= T I T L E  A M E N D M E N T =================
702	Remove the entire title and insert:
703	A bill to be entitled
704	An act relating to agricultural equipment manufacturers,
705	distributors, and dealers; amending s. 686.40, F.S.;
706	providing a popular name; amending s. 686.401, F.S.;
707	clarifying intent of the Agricultural Equipment
708	Manufacturers and Dealers Act to provide for regulation of
709	the conduct of manufacturers, distributors, and dealers of
710	equipment primarily designed for or used in agriculture;
711	amending s. 686.402, F.S.; revising and adding
712	definitions; amending s. 686.403, F.S.; clarifying
713	provisions relating to application; amending s. 686.405,
714	F.S.; providing that it is unlawful to deny, delay payment
715	for, or restrict warranty claims under certain
716	circumstances; providing for audit of warranty claims;
717	amending s. 686.406, F.S.; clarifying provisions relating
718	to surplus parts; amending s. 686.407, F.S.; providing
719	requirements for the establishment of a new dealership or
720	relocation of a current dealership within a certain area;
721	providing requirements for the sale or lease of new
722	equipment; amending s. 686.409, F.S.; clarifying
723	provisions relating to compensation for inventory under
724	certain circumstances; amending s. 686.413, F.S.;
725	providing additional unlawful acts and practices in the
726	conduct of the manufacturing, distribution, wholesaling,
727	franchising, sale, and advertising of equipment; providing
728	requirements for termination of a franchise or selling
729	agreement under certain circumstances; amending s.
730	686.418, F.S.; clarifying provisions relating to the
731	effect of the act on local ordinances; amending s.
732	316.515, F.S.; revising agricultural equipment qualifying
733	for maximum width and length exemption; providing an
734	effective date.

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