HB 1187CS

CHAMBER ACTION



1The Committee on Agriculture recommends the following:
2
3     Committee Substitute
4     Remove the entire bill and insert:
5
A bill to be entitled
6An act relating to agricultural equipment manufacturers,
7distributors, and dealers; amending s. 686.40, F.S.;
8providing a popular name; amending s. 686.401, F.S.;
9clarifying intent of the Agricultural Equipment
10Manufacturers and Dealers Act to provide for regulation of
11the conduct of manufacturers, distributors, and dealers of
12equipment primarily designed for or used in agriculture;
13amending s. 686.402, F.S.; revising and adding
14definitions; amending s. 686.403, F.S.; clarifying
15provisions relating to application; amending s. 686.405,
16F.S.; providing that it is unlawful to deny, delay payment
17for, or restrict warranty claims under certain
18circumstances; providing for audit of warranty claims;
19amending s. 686.406, F.S.; clarifying provisions relating
20to surplus parts; amending s. 686.407, F.S.; providing
21requirements for the establishment of a new dealership or
22relocation of a current dealership within a certain area;
23providing requirements for the sale or lease of new
24equipment; amending s. 686.409, F.S.; clarifying
25provisions relating to compensation for inventory under
26certain circumstances; amending s. 686.413, F.S.;
27providing additional unlawful acts and practices in the
28conduct of the manufacturing, distribution, wholesaling,
29franchising, sale, and advertising of equipment; providing
30requirements for termination of a franchise or selling
31agreement under certain circumstances; amending s.
32686.418, F.S.; clarifying provisions relating to the
33effect of the act on local ordinances; amending s.
34316.515, F.S.; revising agricultural equipment qualifying
35for maximum width and length exemption; providing an
36effective date.
37
38Be It Enacted by the Legislature of the State of Florida:
39
40     Section 1.  Section 686.40, Florida Statutes, is amended to
41read:
42     686.40  Agricultural Farm Equipment Manufacturers and
43Dealers Act; short title.--Sections 686.40-686.418 shall be
44known by the popular name and may be cited as the "Agricultural
45Farm Equipment Manufacturers and Dealers Act."
46     Section 2.  Subsection (1) of section 686.401, Florida
47Statutes, is amended to read:
48     686.401  Legislative finding and intent; construction of
49ss. 686.40-686.418.--
50     (1)  The Legislature finds and declares that the
51distribution and sale of tractors and farm equipment primarily
52designed for or used in agriculture in this state vitally
53affects the general economy of the state, the public interest,
54and the public welfare and that, in the exercise of its police
55power, it is necessary to regulate the conduct of tractor and
56farm equipment manufacturers, distributors, and dealers of such
57equipment, and their representatives, doing business in this
58state in order to prevent fraud, unfair business practices,
59unfair methods of competition, impositions, and other abuses
60upon its citizens.
61     Section 3.  Section 686.402, Florida Statutes, is amended
62to read:
63     686.402  Definitions of terms used in ss. 686.40-
64686.418.--In construing ss. 686.40-686.418, unless the context
65In construing ss. 686.40-686.418, unless the context otherwise
66requires, the word, phrase, or term:
67     (1)(16)  "Tractor or farm equipment Dealer" means a person
68who sells, solicits, or advertises the sale of new and used
69tractors and farm equipment to the consuming public, or who
70maintains such equipment, but does not include:
71     (a)  A receiver, trustee, administrator, executor, personal
72representative, guardian, or other person appointed by or acting
73under judgment, decree, or order of any court.
74     (a)(b)  A public officer while performing her or his duties
75as such officer.
76     (b)(c)  A person making casual or isolated sales of her or
77his own tractors or items of farm equipment not subject to sales
78tax under the laws of this state.
79     (c)(d)  A person engaged in the auction sale of tractors
80and farm equipment.
81     (d)(e)  A dealer in used tractors and farm equipment.
82     (2)  "Dealership" means the business of selling or
83attempting to effect the sale by a dealer of new equipment or
84the right conferred by written or oral agreement with the
85manufacturer, distributor, or wholesaler, for a definite or
86indefinite period of time, to sell or attempt to effect the sale
87of new equipment.
88     (3)(1)  "Distributor" or "wholesaler" means any person,
89firm, association, corporation, or company that sells or
90distributes new tractors and farm equipment to tractor or farm
91equipment dealers and that maintains distributor representatives
92within this state.
93     (4)(2)  "Distributor branch" means a branch office
94maintained by a distributor or wholesaler which sells or
95distributes new tractors and farm equipment to tractor or farm
96equipment dealers.
97     (5)(3)  "Distributor representative" means a representative
98employed by a distributor, distributor branch, or wholesaler.
99     (6)  "Farm Equipment" means those tractors, farm
100implements, or items which are primarily designed for or used
101use in agriculture, including horticulture. Equipment designed
102for or used in irrigation for agriculture or horticulture is
103included in this definition. Equipment designed for or used in
104off-road construction, forestry, mining, utility, and industrial
105purposes is not included in this definition.
106     (7)(4)  "Factory branch" means a branch office maintained
107by a manufacturer which manufactures and assembles tractors and
108farm equipment for sale to distributors of tractors or to farm
109equipment dealers or which is maintained for directing and
110supervising the representatives of the manufacturer.
111     (8)(5)  "Factory representative" means a representative
112employed by a manufacturer or factory branch for the purpose of
113making or promoting the sale of tractors and farm equipment or
114for supervising, servicing, introducing, or contracting with
115tractor or farm equipment dealers or prospective dealers.
116     (9)(7)  "Franchise" means a contract or agreement, either
117expressed or implied, whether oral or written, for a definite or
118indefinite period of time in which a manufacturer, distributor,
119or wholesaler grants to a tractor or farm equipment dealer
120permission to use a trade name, service mark, trademark, or
121related characteristic and in which there is a common interest
122or community of interest in the marketing of tractors or farm
123equipment or services related thereto at wholesale or retail,
124whether by leasing, sale, or otherwise.
125     (10)(8)  "Franchisee" means a tractor or farm equipment
126dealer to whom a franchise is offered or granted.
127     (11)(9)  "Franchisor" means a manufacturer, distributor, or
128wholesaler who grants a franchise to a tractor or farm equipment
129dealer.
130     (12)(10)  "Fraud" means and includes actual fraud or
131constructive fraud as normally defined, in addition to the
132following:
133     (a)  A misrepresentation in any manner, whether
134intentionally false or arising from gross negligence, of a
135material fact.
136     (b)  A promise or representation not made honestly and in
137good faith.
138     (c)  An intentional failure to disclose a material fact.
139     (d)  Any artifice employed to deceive another.
140     (13)(11)  "Manufacturer" means any person engaged in the
141business of manufacturing or assembling new and unused tractors
142and farm equipment.
143     (14)(12)  "New tractor or farm equipment" means a tractor
144or item of farm equipment which has not been previously sold to
145and put into regular use or service by any person, except a
146distributor, wholesaler, or tractor or farm equipment dealer for
147resale.
148     (15)(13)  "Person" means a natural person, corporation,
149association, partnership, trust, or other business entity and,
150in the case of a business entity, includes any other entity in
151which the business entity has a majority interest or which it
152effectively controls, as well as the individual officers,
153directors, and other persons in active control of the activities
154of each such entity.
155     (16)  "Relevant market area" means the geographic area for
156which a dealer is assigned responsibility for selling or
157soliciting or advertising the sale of equipment under the terms
158of a franchise.
159     (17)(14)  "Sale" means and includes the issuance, transfer,
160agreement for transfer, exchange, pledge, hypothecation, or
161mortgage in any manner or form, whether by transfer in trust or
162otherwise, of any tractor or item of farm equipment or interest
163therein, or of any franchise related thereto, for a
164consideration and any option, subscription or other contract, or
165solicitation, looking to a sale, or offer or attempt to sell in
166any form, whether in oral or written form for a consideration.
167     (18)  "Termination" means the termination, cancellation,
168nonrenewal, or noncontinuation of a contract or agreement.
169     (19)(15)  "Tractor" means a vehicle that is operated
170principally upon a farm, grove, or orchard in connection with
171agricultural or horticultural pursuits or in connection with
172irrigation.
173     Section 4.  Section 686.403, Florida Statutes, is amended
174to read:
175     686.403  Application of ss. 686.40-686.418.--
176     (1)  Any person who engages directly or indirectly in
177purposeful agreements or contracts within this state in
178connection with the sale or advertising for sale of new
179equipment tractors and farm machinery and parts is subject to
180ss. 686.40-686.418 and to the jurisdiction of the courts of this
181state for violations of such sections in accordance with the
182provisions of the laws of this state.
183     (2)  Sections 686.40-686.418 apply to all written or oral
184agreements between a manufacturer, distributor, or wholesaler
185with a tractor or farm equipment dealer, including, but not
186limited to, the franchise offering; the franchise agreement;
187sales of goods, services, and advertising; leases or mortgages
188of real or personal property; promises to pay; security
189interests; pledges; insurance contracts; advertising contracts;
190construction or installation contracts; servicing contracts; and
191all other such agreements in which the manufacturer,
192distributor, or wholesaler has any direct or indirect interest.
193     (3)  Sections 686.40-686.418 apply to all continuing
194contracts now in effect which have no expiration date and to all
195other contracts entered into or renewed after July 1, 1984.
196     Section 5.  Section 686.405, Florida Statutes, is amended
197to read:
198     686.405  Warranty agreements; claims; compensation of
199dealers.--
200     (1)  Every manufacturer, distributor, wholesaler, factory
201branch or division, distributor branch or division, or wholesale
202branch or division shall provide a fair and reasonable warranty
203agreement on any new tractor or item of farm equipment which it
204sells and shall fairly compensate each of its tractor or farm
205equipment dealers for labor and parts used in fulfilling such
206warranty agreements.
207     (2)(a)  Each claim for payment under such warranty
208agreements made by a tractor or farm equipment dealer for such
209labor and parts shall be paid within 30 days following its
210approval. Each such claim shall be either approved or
211disapproved within 30 days after its receipt. When any such
212claim is disapproved, the tractor or farm equipment dealer who
213submitted it shall be notified in writing of such disapproval
214within such period, and such notice shall state the specific
215grounds upon which the disapproval is based.
216     (b)  Any special handling of claims required of the dealer
217by the manufacturer, distributor, wholesaler, factory branch or
218division, distributor branch or division, or wholesale branch or
219division, which handling is not uniformly required of all
220dealers of that make, may be enforced only after 30 days' notice
221in writing to the dealer and upon good and sufficient reason.
222     (3)(a)  The minimum lawful basis for compensating a dealer
223for warranty work, as provided for in this section, shall be
224calculated for labor in accordance with the reasonable and
225customary amount of time required to complete such work,
226expressed in hours and fractions of hours multiplied by the
227dealer's established hourly retail labor rate. Prior to filing a
228claim for reimbursement for warranty work, the dealer must
229notify the applicable manufacturer, distributor, or wholesaler
230of his or her hourly retail labor rate.
231     (b)  The minimum lawful basis for compensation to the
232dealer for parts used in fulfilling such warranty work shall be
233at the dealer's costs for such parts, including all freight and
234handling charges applicable to such parts, plus 15 percent of
235the sum of such costs and charges to reimburse the dealer's
236reasonable cost of doing business and providing such warranty
237service on behalf of the manufacturer.
238     (4)  It shall be unlawful to deny, delay payment for, or
239restrict a claim by a dealer for warranty service or parts,
240incentives, hold-backs, or other amounts owed to a dealer unless
241the denial, delay, or restriction is the direct result of a
242material defect in the claim that affects its validity.
243     (5)  A manufacturer, distributor, or wholesaler may audit
244warranty claims submitted by its dealers only for a period of up
245to 1 year following payment of such claims and may charge back
246to its dealers only those amounts based upon paid claims shown
247by the audit to be invalid. However, this limitation shall not
248apply in any case of fraudulent claims.
249     (6)  Any audit of a dealer by or on behalf of a
250manufacturer, distributor, or wholesaler for sales incentives,
251service incentives, rebates, or other forms of incentive
252compensation shall be completed not later than 6 months after
253the date of termination of such incentive compensation program.
254However, this limitation shall not apply in any case of
255fraudulent claims.
256     Section 6.  Section 686.406, Florida Statutes, is amended
257to read:
258     686.406  Parts; availability; return.--
259     (1)  Every manufacturer shall specify, and every dealer
260shall provide and fulfill, reasonable predelivery and
261preparation obligations for its tractors and farm equipment
262prior to delivery of the tractors and equipment to retail
263purchasers.
264     (2)  Every manufacturer shall provide for the availability
265of repair parts throughout the reasonable useful life of any
266tractor or farm equipment sold.
267     (3)  Every manufacturer or distributor shall provide to
268each of its her or his dealers, annually, an opportunity to
269return a portion of its their surplus parts inventories for
270credit. The surplus procedure shall be administered as follows:
271     (a)  The manufacturer or distributor may specify, and
272thereupon notify each of its her or his dealers of, a time
273period of at least 60 days' duration during which each of its
274the dealers may submit its their surplus parts list lists and
275return the their surplus parts to the manufacturer or
276distributor.
277     (b)  If a manufacturer or distributor has not notified a
278dealer of a specific time period for returning surplus parts
279within the preceding 12 months, the manufacturer or distributor
280she or he shall authorize and allow the dealer's surplus parts
281return request within 30 days after receipt of such request from
282such the dealer.
283     (c)  A manufacturer or distributor must allow surplus parts
284return authority on a dollar value of parts equal to 6 percent
285of the total dollar value of parts purchased from the
286manufacturer or distributor by the dealer during the 12-month
287period immediately preceding the notification to such the dealer
288by the manufacturer or distributor of the surplus parts return
289program, or the month such the dealer's return request is made,
290whichever is applicable. However, the dealer may, at her or his
291option, elect to return a dollar value of her or his surplus
292parts equal to less than 6 percent of the total dollar value of
293parts purchased by such the dealer from the manufacturer or
294distributor during the preceding 12-month period as provided
295herein.
296     (d)  No obsolete or superseded part may be returned, but
297any part listed in the manufacturer's, distributor's, or
298wholesaler's current returnable parts list at the date of
299notification of the surplus parts return program by the
300manufacturer or distributor to the dealer, or the date of the
301dealer's parts return request, whichever is applicable, is
302eligible for return and credit specified. However, returned
303parts must be in new and unused condition and must have been
304purchased from the manufacturer, distributor, or wholesaler to
305whom they are returned.
306     (e)  The minimum lawful credit to be allowed for returned
307parts is 85 percent of the wholesale cost of the parts as listed
308in the manufacturer's, distributor's, or wholesaler's current
309returnable parts list at the date of the notification of the
310surplus parts return program by the manufacturer, wholesaler, or
311distributor to the dealer, or the date of the dealer's parts
312return request, whichever is applicable.
313     (f)  Applicable credit must be issued or furnished by the
314manufacturer or distributor to the dealer within 60 days after
315receipt of her or his returned parts.
316     (g)  The packing and return freight expense incurred in any
317return of surplus parts pursuant to the terms of this section
318shall be borne by the dealer.
319     Section 7.  Section 686.407, Florida Statutes, is amended
320to read:
321     686.407  Repurchase of inventory upon termination of
322franchise agreement; establishment or relocation of dealership;
323sale or lease of new equipment.--
324     (1)  Whenever any tractor or farm equipment dealer enters
325into a franchise agreement with a manufacturer, distributor, or
326wholesaler in which agreement the dealer agrees to maintain an
327inventory of tractors, farm equipment, or repair parts and the
328franchise is subsequently terminated, the manufacturer,
329distributor, or wholesaler shall repurchase the inventory as
330provided in this section. However, the dealer may keep the
331inventory if he or she desires. If the dealer has any
332outstanding debts to the manufacturer, distributor, or
333wholesaler, then the repurchase amount may be credited to the
334dealer's account.
335     (2)  If the dealer decides not to keep the inventory, the
336manufacturer, distributor, or wholesaler shall repurchase that
337inventory previously purchased from such manufacturer,
338distributor, or wholesaler him or her and held by the dealer on
339the date of termination of the contract. The manufacturer,
340distributor, or wholesaler shall pay:
341     (a)  One hundred percent of the actual dealer cost,
342including freight, of all new, unsold, undamaged, and complete
343tractors, or other items of farm equipment which is are
344resalable, less a reasonable allowance for depreciation due to
345usage by the dealer and deterioration directly attributable to
346weather conditions at the dealer's location; and
347     (b)  Eighty-five percent of the current wholesale price of
348all new, unused, and undamaged repair parts and accessories
349which are listed in the manufacturer's, distributor's, or
350wholesaler's current returnable parts list. The manufacturer,
351distributor, or wholesaler shall also pay the dealer 6 percent
352of the current wholesale price on all new, unused, and undamaged
353repair parts returned to cover the cost of handling, packing,
354and loading. However, the manufacturer, distributor, or
355wholesaler shall have the option of performing the handling,
356packing, and loading in lieu of paying the 6-percent sum imposed
357in this subsection for these services; and, in this event, after
358receipt by the dealer of the full repurchase amount as provided
359in this section, the dealer shall make available to the
360manufacturer, distributor, or wholesaler, at the dealer's
361address or at the places at which the tractors and equipment is
362are located, all tractors and items of farm equipment previously
363purchased by the dealer.
364     (3)  Upon payment within a reasonable time of the
365repurchase amount to the dealer, the title and right of
366possession to the repurchased inventory shall transfer or be
367transferred to the manufacturer, distributor, or wholesaler, as
368the case may be.
369     (4)  The provisions of this section do not require the
370repurchase from a dealer of:
371     (a)  Any repair part which has a limited storage life or is
372otherwise subject to deterioration.
373     (a)(b)  Any single repair part which is priced as a set of
374two or more items.
375     (b)(c)  Any repair part which because of its condition is
376not resalable as a new part without repackaging or
377reconditioning.
378     (c)(d)  Any inventory for which the dealer is unable to
379furnish evidence, reasonably satisfactory to the manufacturer,
380distributor, or wholesaler, of good title, free and clear of all
381claims, liens, and encumbrances.
382     (d)(e)  Any inventory which the dealer desires to keep, if
383the dealer has a contractual right to keep it.
384     (e)(f)  Any tractor or item of farm equipment which is not
385in new, unused, undamaged, and complete condition.
386     (f)(g)  Any tractor or item of farm equipment which has
387been used by the dealer or has deteriorated because of weather
388conditions at the dealer's location unless the manufacturer,
389distributor, or wholesaler receives a reasonable allowance for
390such usage or deterioration.
391     (g)(h)  Any repair parts which are not in new, unused, and
392undamaged condition.
393     (h)(i)  Any inventory which was ordered by the dealer on or
394after the date of receipt of the notification of termination of
395the franchise or contractual agreement.
396     (i)(j)  Any inventory which was acquired by the dealer from
397any source other than the manufacturer, distributor, or
398wholesaler.
399     (5)  If any manufacturer, distributor, or wholesaler fails
400or refuses to repurchase any inventory covered under the
401provisions of this section within 60 days after termination of a
402dealer's contract, he or she is civilly liable for 100 percent
403of the current wholesale price of the inventory plus any freight
404charges paid by the dealer, such the dealer's reasonable
405attorney's fees, court costs, and interest on the current
406wholesale price computed at the legal interest rate provided in
407s. 687.01 from the 61st day after termination.
408     (6)  A manufacturer, distributor, or wholesaler that
409intends to establish a new dealership or to relocate a current
410dealership for a particular product line or make of equipment
411within the relevant market area of an existing dealership of the
412same product line or make of equipment shall give written notice
413of such intent by certified mail or overnight delivery, return
414receipt requested, to such existing dealership. The notice shall
415be delivered at least 180 days prior to establishment of a new
416dealership or relocation of a current dealership. The notice
417shall include:
418     (a)  The specific location of the additional or relocated
419dealership.
420     (b)  The date on or after which the additional or relocated
421dealership will commence operation at the new location.
422     (c)  The identity of all existing dealerships in whose
423relevant market area the new or relocated dealership is to be
424located.
425     (d)  The names and addresses of the dealer and principals
426in the new or relocated dealership.
427     (7)  A manufacturer, distributor, or wholesaler may sell or
428lease new equipment for use within the state. If the equipment
429is prepared for delivery or serviced by a dealer, the
430manufacturer, distributor, or wholesaler shall reasonably
431compensate the dealer for the preparation and delivery of the
432new equipment and pay to the dealer a reasonable commission on
433the sale or lease of the new equipment which shall not be less
434than 8 percent of the sale price of the equipment. This
435compensation must be paid or credited in the same manner as
436provided in this section. The manufacturer, distributor, or
437wholesaler, if practicable, shall utilize the dealer in the
438relevant market area for preparation and delivery. For purposes
439of this subsection, equipment is considered to be used primarily
440within a dealer's relevant market area if the new equipment is
441located or housed at a user's facility located within the
442relevant market area. This subsection shall not be applicable to
443any liquidation or sale of equipment which has been ordered by
444any court.
445     Section 8.  Section 686.409, Florida Statutes, is amended
446to read:
447     686.409  Compensation for inventory upon refusal to renew,
448termination of, or restriction on transfer of a franchise.--It
449is unlawful for the manufacturer, distributor, wholesaler, or
450franchisor, without due cause, to fail to renew a franchise on
451terms then equally available to all of its her or his tractor or
452farm equipment dealers, to terminate a franchise, or to restrict
453the transfer of a franchise unless the franchisee receives fair
454and reasonable compensation for the inventory of the business.
455As used in this section, the term "due cause" shall be construed
456in accordance with the definition of due cause contained in s.
457686.413(3)(c)2.
458     Section 9.  Section 686.413, Florida Statutes, is amended
459to read:
460     686.413  Unlawful acts and practices.--Unfair methods of
461competition and unfair or deceptive acts or practices in the
462conduct of the manufacturing, distribution, wholesaling,
463franchising, sale, and advertising of tractors and farm
464equipment are declared to be unlawful.
465     (1)  It is deemed a violation of this section for any
466manufacturer, factory branch, factory representative,
467distributor, distributor branch, distributor representative,
468wholesaler, or tractor or farm equipment dealer to engage in any
469action which is arbitrary, capricious, in bad faith, or
470unconscionable and which causes damage in terms of law or equity
471to any of the parties or to the public.
472     (2)  It is deemed a violation of this section for a
473manufacturer, factory branch or division, distributor,
474distributor branch or division, wholesaler, or wholesale branch
475or division, or officer, agent, or other representative thereof,
476to coerce, compel, or attempt to coerce or compel any tractor or
477farm equipment dealer:
478     (a)  To order or accept delivery of any tractor or item of
479farm equipment, parts or accessories therefor, or other
480commodity or commodities which such tractor or farm equipment
481dealer has not voluntarily ordered.
482     (b)  To order or accept delivery of any tractor or farm
483equipment with special features, accessories, or equipment not
484included in the base list price of such tractor or farm
485equipment as publicly advertised by the manufacturer of the
486tractor or equipment.
487     (3)  It is deemed a violation of this section for a
488manufacturer, factory branch or division, distributor,
489distributor branch or division, wholesaler, or wholesale branch
490or division, or officer, agent, or other representative thereof:
491     (a)  To refuse to deliver to any tractor or farm equipment
492dealer having a franchise or contractual agreement for the
493retail sale of new tractors and farm equipment sold or
494distributed by such manufacturer, factory branch or division,
495distributor branch or division, or wholesale branch or division,
496in reasonable quantities and within a reasonable time after
497receipt of the dealer's order, any tractor or item of farm
498equipment covered by such franchise or contract specifically
499advertised or represented by such manufacturer, factory branch
500or division, distributor, distributor branch or division,
501wholesaler, or wholesale branch or division to be available for
502immediate delivery. However, the failure to deliver any such
503tractor or item of farm equipment is not considered a violation
504of this section if such failure is due to a prudent and
505reasonable restriction on the extension of credit by the
506franchisor to the dealer, an act of God, a work stoppage or
507delay due to a strike or labor difficulty, a bona fide shortage
508of materials, a freight embargo, or another cause over which the
509manufacturer, distributor, or wholesaler, or any agent thereof,
510has no control whatsoever.
511     (b)  To coerce, compel, or attempt to coerce or compel any
512tractor or farm equipment dealer to enter into any agreement,
513whether written or oral, supplementary to an existing franchise
514with such manufacturer, factory branch or division, distributor,
515distributor branch or division, wholesaler, or wholesale branch
516or division, or officer, agent, or other representative thereof;
517or to do any other act prejudicial to such dealer by threatening
518to cancel any franchise or contractual agreement existing
519between such manufacturer, factory branch or division,
520distributor, distributor branch or division, wholesaler, or
521wholesale branch or division and such dealer. However, notice in
522good faith to any tractor or farm equipment dealer of such
523dealer's violation or breach of any terms or provisions of such
524franchise or contractual agreement does not constitute a
525violation of this section if such notice is in writing and is
526mailed by registered or certified mail to such dealer at her or
527his current business address and such notice contains the
528specific facts as to the dealer's violation or breach of such
529franchise or contractual agreement.
530     (c)1.  To terminate or cancel the franchise or selling
531agreement of any tractor or farm equipment dealer without due
532cause, as defined in subparagraph 2. The termination nonrenewal
533of a franchise or selling agreement, without due cause,
534constitutes an unfair termination or cancellation, regardless of
535the specified time period of such franchise or selling
536agreement. Except when the ground for such termination or
537cancellation falls within sub-subparagraph 2.c., such
538manufacturer, factory branch or division, distributor,
539distributor branch or division, wholesaler, or wholesale branch
540or division, or officer, agent, or other representative thereof,
541shall notify a tractor or farm equipment dealer in writing of
542the termination or cancellation of the franchise or selling
543agreement of such dealer at least 180 90 days before the
544effective date of the termination or cancellation, stating the
545specific ground for such termination or cancellation. In no
546event shall the contractual term of any such franchise or
547selling agreement expire, without the written consent of the
548tractor or farm equipment dealer involved, prior to the
549expiration of at least 180 90 days following such written
550notice. During the 180-day 90-day period, either party may, in
551appropriate circumstances, petition a court of competent
552jurisdiction to modify such 180-day 90-day stay or to extend it
553pending a final determination of such proceeding on the merits.
554The court shall have authority to grant temporary, preliminary,
555and final injunctive relief. Should a dealer cure the claimed
556deficiency within the 180-day period, the franchise or selling
557agreement shall not be terminated.
558     2.  As used in this subparagraph, tests for determining
559what constitutes due cause for a manufacturer or distributor to
560terminate, cancel, or refuse to renew a franchise agreement
561include whether the dealer:
562     a.  Has transferred an ownership interest in the dealership
563without the manufacturer's or distributor's consent;
564     b.  Has made a material misrepresentation in applying for
565or in acting under the franchise agreement;
566     c.  Has filed a voluntary petition in bankruptcy or has had
567an involuntary petition in bankruptcy filed against her or him
568which has not been discharged within 60 days after the filing,
569is in default under the provisions of a security agreement in
570effect with the manufacturer or distributor, or is in
571receivership;
572     d.  Has engaged in unfair business or trade practices;
573     e.  Has inadequately represented the manufacturer's or
574distributor's products with respect to sales, service, or
575warranty work;
576     f.  Has inadequate and insufficient sales and service
577facilities and personnel;
578     g.  Has failed to comply with an applicable federal, state,
579or local licensing law;
580     h.  Has been convicted of a crime, the effect of which
581would be detrimental to the manufacturer, distributor, or
582dealership;
583     i.  Has failed to operate in the normal course of business
584for 10 consecutive business days or has terminated her or his
585business;
586     j.  Has relocated her or his place of business without the
587manufacturer's or distributor's consent; or
588     k.  Has failed to comply with the terms that are not in
589conflict with this chapter or the terms of the dealership or
590franchise agreement.
591     3.  Before termination of the franchise or selling
592agreement because of the dealer's failure to meet marketing
593criteria or market penetration, the manufacturer, factory branch
594or division, distributor, distributor branch or division,
595wholesaler, or wholesale branch or division, or officer, agent,
596or other representative thereof, shall provide written notice of
597such intention at least 1 year in advance. After such notice,
598the manufacturer or other entity issuing the notice shall make
599good faith efforts to work with the dealer to gain the desired
600market share, including, without limitation, reasonably making
601available to the dealer an adequate inventory of new equipment
602and parts and competitive marketing programs. The manufacturer
603or other entity, at the end of the 1-year notice period, may
604terminate or elect not to renew the agreement only upon further
605written notice specifying the reasons for determining that the
606dealer failed to meet reasonable marketing criteria or market
607penetration. Such written notice must specify that termination
608is effective 90 days from the date of the notice. Either party
609may petition the court pursuant to subparagraph (c)1. for the
610relief specified in such subparagraph. Should a dealer cure the
611claimed deficiency within the 90-day period, the franchise or
612selling agreement shall not be terminated.
613     (d)  To resort to or use any false or misleading
614advertisement in connection with its her or his business as such
615manufacturer, factory branch or division, distributor,
616distributor branch or division, wholesaler, or wholesale branch
617or division, or officer, agent, or other representative thereof.
618     (e)  To offer to sell or to sell any new tractor or item of
619farm equipment, or parts or accessories therefor, to any other
620tractor or farm equipment dealer at a lower actual price
621therefor than the actual price offered to any other tractor or
622farm equipment dealer for the same model tractor or farm
623equipment identically equipped or to utilize any device,
624including, but not limited to, sales promotion plans or
625programs, which results in such lesser actual price or results
626in a fixed price predetermined solely by the manufacturer or
627distributor. However, the provisions of this paragraph do not
628apply to sales to a tractor or farm equipment dealer for resale
629to any unit or agency of the United States Government, the state
630or any of its political subdivisions, or any municipality
631located within this state. Further, the provisions of this
632paragraph do not apply so long as a manufacturer, distributor,
633or wholesaler, or any agent thereof, sells or offers to sell
634such new tractor or farm equipment, parts, or accessories to all
635of its her or his franchised tractor or farm equipment dealers
636at an equal price.
637     (f)  To willfully discriminate, either directly or
638indirectly, in price, programs, or terms of sale offered to
639franchisees, when the effect of such discrimination may be to
640substantially lessen competition or to give to one holder of a
641franchise any economic, business, or competitive advantage not
642offered to all holders of the same or similar franchise.
643     (g)  To prevent or attempt to prevent, by contract or
644otherwise, any tractor or farm equipment dealer from changing
645the capital structure of her or his dealership or the means by
646or through which the dealer finances the operation of her or his
647dealership, provided the dealer at all times meets any
648reasonable capital standards agreed to between the dealership
649and the manufacturer, distributor, or wholesaler and provided
650such change by the dealer does not result in a change in the
651executive management of the dealership.
652     (h)  To prevent or attempt to prevent, by contract or
653otherwise, any tractor or farm equipment dealer or any officer,
654member partner, or stockholder of any tractor or farm equipment
655dealer from selling or transferring any part of the interest of
656any of them to any other person or persons or party or parties.
657However, no dealer, officer, partner, or stockholder has the
658right to sell, transfer, or assign the franchise or power of
659management or control thereunder without the written consent of
660the manufacturer, distributor, or wholesaler, except that such
661consent may not be unreasonably withheld.
662     (i)  To impose, directly or indirectly, unreasonable
663restrictions on the dealer relative to transfer, renewal,
664termination, location, or site control.
665     (j)  To prevent a dealer from having an investment in or
666holding a dealership contract for the sale of competing product
667lines or makes of equipment, or to require a dealer to provide
668separate facilities for competing product lines or makes of
669equipment.
670     (k)(i)  To obtain money, goods, services, anything of
671value, or any other benefit from any other person with whom the
672tractor or farm equipment dealer does business or employs on
673account of or in relation to the transactions between the
674dealer, the franchisor, and such other person.
675     (l)(j)  To require a tractor and farm equipment dealer to
676assent to a release, assignment, novation, waiver, or estoppel
677which would relieve any person from liability imposed by ss.
678686.40-686.418.
679     (4)  It is deemed a violation of this section for a tractor
680or farm equipment dealer:
681     (a)  To require a retail purchaser of a new tractor or item
682of farm equipment, as a condition of sale and delivery of the
683tractor or equipment, also to purchase special features,
684appliances, equipment, parts, or accessories not desired or
685requested by the purchaser. However, this prohibition does not
686apply to special features, appliances, equipment, parts, or
687accessories which are already installed when the tractor or item
688of farm equipment is received by the dealer from the
689manufacturer, distributor, or wholesaler of such tractor or
690equipment.
691     (b)  To represent and sell as new and unused any tractor or
692item of farm equipment which has been used and operated for
693demonstration or other purposes without stating to the purchaser
694prior to the sale the approximate amount of use the equipment
695tractor or item of farm machinery has experienced or undergone.
696     (c)  To resort to or use any false or misleading
697advertisement in connection with her or his business as such
698tractor or farm equipment dealer.
699     Section 10.  Section 686.418, Florida Statutes, is amended
700to read:
701     686.418  Effect of act on other remedies.--Sections 686.40-
702686.418 are supplemental to and do not preempt local ordinances
703dealing with prohibited or unlawful conduct in the
704manufacturing, distribution, wholesaling, advertising, or sale
705of tractors and other items of farm equipment if such ordinances
706are not inconsistent with such sections.
707     Section 11.  Subsection (5) of section 316.515, Florida
708Statutes, is amended to read:
709     316.515  Maximum width, height, length.--
710     (5)  IMPLEMENTS OF HUSBANDRY, AGRICULTURAL TRAILERS, SAFETY
711REQUIREMENTS.--Notwithstanding any other provisions of law,
712straight trucks, agricultural tractors, and cotton module
713movers, not exceeding 50 feet in length, or any combination of
714up to and including three implements of husbandry including the
715towing power unit, and any single agricultural trailer, with a
716load thereon or any agricultural implements attached to a towing
717power unit not exceeding 130 inches in width, or a self-
718propelled agricultural implement or an agricultural tractor not
719exceeding 130 inches in width, is authorized for the purpose of
720transporting peanuts, grains, soybeans, cotton, hay, straw, or
721other perishable farm products from their point of production to
722the first point of change of custody or of long-term storage,
723and for the purpose of returning to such point of production, or
724for the purpose of moving such tractors, movers, and implements
725from one point of agricultural production to another, by a
726person engaged in the production of any such product or custom
727hauler, if such vehicle or combination of vehicles otherwise
728complies with this section. Such vehicles shall be operated in
729accordance with all safety requirements prescribed by law and
730Department of Transportation rules. The Department of
731Transportation may issue overlength permits for cotton module
732movers greater than 50 feet but not more than 55 feet in overall
733length.
734     Section 12.  This act shall take effect July 1, 2004.


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