HB 1187CS

CHAMBER ACTION



1The Committee on Commerce 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     (e)  A mass-market retailer.
83     (2)  "Dealership" means the business of selling or
84attempting to effect the sale by a dealer of new equipment or
85the right conferred by written or oral agreement with the
86manufacturer, distributor, or wholesaler, for a definite or
87indefinite period of time, to sell or attempt to effect the sale
88of new equipment.
89     (3)(1)  "Distributor" or "wholesaler" means any person,
90firm, association, corporation, or company that sells or
91distributes new tractors and farm equipment to tractor or farm
92equipment dealers and that maintains distributor representatives
93within this state.
94     (4)(2)  "Distributor branch" means a branch office
95maintained by a distributor or wholesaler which sells or
96distributes new tractors and farm equipment to tractor or farm
97equipment dealers.
98     (5)(3)  "Distributor representative" means a representative
99employed by a distributor, distributor branch, or wholesaler.
100     (6)  "Farm Equipment" means those tractors, farm
101implements, or items which are primarily designed for or used
102use in agriculture. Equipment designed for or used in off-road
103construction, forestry, mining, utility, and industrial purposes
104is not included in this definition.
105     (7)(4)  "Factory branch" means a branch office maintained
106by a manufacturer which manufactures and assembles tractors and
107farm equipment for sale to distributors of tractors or to farm
108equipment dealers or which is maintained for directing and
109supervising the representatives of the manufacturer.
110     (8)(5)  "Factory representative" means a representative
111employed by a manufacturer or factory branch for the purpose of
112making or promoting the sale of tractors and farm equipment or
113for supervising, servicing, introducing, or contracting with
114tractor or farm equipment dealers or prospective dealers.
115     (9)(7)  "Franchise" means a contract or agreement, either
116expressed or implied, whether oral or written, for a definite or
117indefinite period of time in which a manufacturer, distributor,
118or wholesaler grants to a tractor or farm equipment dealer
119permission to use a trade name, service mark, trademark, or
120related characteristic and in which there is a common interest
121or community of interest in the marketing of tractors or farm
122equipment or services related thereto at wholesale or retail,
123whether by leasing, sale, or otherwise.
124     (10)(8)  "Franchisee" means a tractor or farm equipment
125dealer to whom a franchise is offered or granted.
126     (11)(9)  "Franchisor" means a manufacturer, distributor, or
127wholesaler who grants a franchise to a tractor or farm equipment
128dealer.
129     (12)(10)  "Fraud" means and includes actual fraud or
130constructive fraud as normally defined, in addition to the
131following:
132     (a)  A misrepresentation in any manner, whether
133intentionally false or arising from gross negligence, of a
134material fact.
135     (b)  A promise or representation not made honestly and in
136good faith.
137     (c)  An intentional failure to disclose a material fact.
138     (d)  Any artifice employed to deceive another.
139     (13)(11)  "Manufacturer" means any person engaged in the
140business of manufacturing or assembling new and unused tractors
141and farm equipment.
142     (14)(12)  "New tractor or farm equipment" means a tractor
143or item of farm equipment which has not been previously sold to
144and put into regular use or service by any person, except a
145distributor, wholesaler, or tractor or farm equipment dealer for
146resale.
147     (15)(13)  "Person" means a natural person, corporation,
148association, partnership, trust, or other business entity and,
149in the case of a business entity, includes any other entity in
150which the business entity has a majority interest or which it
151effectively controls, as well as the individual officers,
152directors, and other persons in active control of the activities
153of each such entity.
154     (16)  "Relevant market area" means the geographic area for
155which a dealer is assigned responsibility for selling or
156soliciting or advertising the sale of equipment under the terms
157of a franchise.
158     (17)(14)  "Sale" means and includes the issuance, transfer,
159agreement for transfer, exchange, pledge, hypothecation, or
160mortgage in any manner or form, whether by transfer in trust or
161otherwise, of any tractor or item of farm equipment or interest
162therein, or of any franchise related thereto, for a
163consideration and any option, subscription or other contract, or
164solicitation, looking to a sale, or offer or attempt to sell in
165any form, whether in oral or written form for a consideration.
166     (18)  "Termination" means the termination, cancellation,
167nonrenewal, or noncontinuation of a contract or agreement.
168     (19)(15)  "Tractor" means a vehicle that is operated
169principally upon a farm, grove, or orchard in connection with
170agricultural or horticultural pursuits or in connection with
171irrigation.
172     Section 4.  Section 686.403, Florida Statutes, is amended
173to read:
174     686.403  Application of ss. 686.40-686.418.--
175     (1)  Any person who engages directly or indirectly in
176purposeful agreements or contracts within this state in
177connection with the sale or advertising for sale of new
178equipment tractors and farm machinery and parts is subject to
179ss. 686.40-686.418 and to the jurisdiction of the courts of this
180state for violations of such sections in accordance with the
181provisions of the laws of this state.
182     (2)  Sections 686.40-686.418 apply to all written or oral
183agreements between a manufacturer, distributor, or wholesaler
184with a tractor or farm equipment dealer, including, but not
185limited to, the franchise offering; the franchise agreement;
186sales of goods, services, and advertising; leases or mortgages
187of real or personal property; promises to pay; security
188interests; pledges; insurance contracts; advertising contracts;
189construction or installation contracts; servicing contracts; and
190all other such agreements in which the manufacturer,
191distributor, or wholesaler has any direct or indirect interest.
192     (3)  Sections 686.40-686.418 apply to all continuing
193contracts now in effect which have no expiration date and to all
194other contracts entered into or renewed after July 1, 1984.
195     Section 5.  Section 686.405, Florida Statutes, is amended
196to read:
197     686.405  Warranty agreements; claims; compensation of
198dealers.--
199     (1)  Every manufacturer, distributor, wholesaler, factory
200branch or division, distributor branch or division, or wholesale
201branch or division shall provide a fair and reasonable warranty
202agreement on any new tractor or item of farm equipment which it
203sells and shall fairly compensate each of its tractor or farm
204equipment dealers for labor and parts used in fulfilling such
205warranty agreements.
206     (2)(a)  Each claim for payment under such warranty
207agreements made by a tractor or farm equipment dealer for such
208labor and parts shall be paid within 30 days following its
209approval. Each such claim shall be either approved or
210disapproved within 30 days after its receipt. When any such
211claim is disapproved, the tractor or farm equipment dealer who
212submitted it shall be notified in writing of such disapproval
213within such period, and such notice shall state the specific
214grounds upon which the disapproval is based.
215     (b)  Any special handling of claims required of the dealer
216by the manufacturer, distributor, wholesaler, factory branch or
217division, distributor branch or division, or wholesale branch or
218division, which handling is not uniformly required of all
219dealers of that make, may be enforced only after 30 days' notice
220in writing to the dealer and upon good and sufficient reason.
221     (3)(a)  The minimum lawful basis for compensating a dealer
222for warranty work, as provided for in this section, shall be
223calculated for labor in accordance with the reasonable and
224customary amount of time required to complete such work,
225expressed in hours and fractions of hours multiplied by the
226dealer's established hourly retail labor rate. Prior to filing a
227claim for reimbursement for warranty work, the dealer must
228notify the applicable manufacturer, distributor, or wholesaler
229of his or her hourly retail labor rate.
230     (b)  The minimum lawful basis for compensation to the
231dealer for parts used in fulfilling such warranty work shall be
232at the dealer's costs for such parts, including all freight and
233handling charges applicable to such parts, plus 15 percent of
234the sum of such costs and charges to reimburse the dealer's
235reasonable cost of doing business and providing such warranty
236service on behalf of the manufacturer.
237     (4)  It shall be unlawful to deny, delay payment for, or
238restrict a claim by a dealer for warranty service or parts,
239incentives, hold-backs, or other amounts owed to a dealer unless
240the denial, delay, or restriction is the direct result of a
241material defect in the claim that affects its validity.
242     (5)  A manufacturer, distributor, or wholesaler may audit
243warranty claims submitted by its dealers only for a period of up
244to 1 year following payment of such claims and may charge back
245to its dealers only those amounts based upon paid claims shown
246by the audit to be invalid. However, this limitation shall not
247apply in any case of fraudulent claims.
248     (6)  Any audit of a dealer by or on behalf of a
249manufacturer, distributor, or wholesaler for sales incentives,
250service incentives, rebates, or other forms of incentive
251compensation shall be completed not later than 9 months after
252the date of termination of such incentive compensation program.
253However, this limitation shall not apply in any case of
254fraudulent claims.
255     Section 6.  Section 686.406, Florida Statutes, is amended
256to read:
257     686.406  Parts; availability; return.--
258     (1)  Every manufacturer shall specify, and every dealer
259shall provide and fulfill, reasonable predelivery and
260preparation obligations for its tractors and farm equipment
261prior to delivery of the tractors and equipment to retail
262purchasers.
263     (2)  Every manufacturer shall provide for the availability
264of repair parts throughout the reasonable useful life of any
265tractor or farm equipment sold.
266     (3)  Every manufacturer or distributor shall provide to
267each of its her or his dealers, annually, an opportunity to
268return a portion of its their surplus parts inventories for
269credit. The surplus procedure shall be administered as follows:
270     (a)  The manufacturer or distributor may specify, and
271thereupon notify each of its her or his dealers of, a time
272period of at least 60 days' duration during which each of its
273the dealers may submit its their surplus parts list lists and
274return the their surplus parts to the manufacturer or
275distributor.
276     (b)  If a manufacturer or distributor has not notified a
277dealer of a specific time period for returning surplus parts
278within the preceding 12 months, the manufacturer or distributor
279she or he shall authorize and allow the dealer's surplus parts
280return request within 30 days after receipt of such request from
281such the dealer.
282     (c)  A manufacturer or distributor must allow surplus parts
283return authority on a dollar value of parts equal to 6 percent
284of the total dollar value of parts purchased from the
285manufacturer or distributor by the dealer during the 12-month
286period immediately preceding the notification to such the dealer
287by the manufacturer or distributor of the surplus parts return
288program, or the month such the dealer's return request is made,
289whichever is applicable. However, the dealer may, at her or his
290option, elect to return a dollar value of her or his surplus
291parts equal to less than 6 percent of the total dollar value of
292parts purchased by such the dealer from the manufacturer or
293distributor during the preceding 12-month period as provided
294herein.
295     (d)  No obsolete or superseded part may be returned, but
296any part listed in the manufacturer's, distributor's, or
297wholesaler's current returnable parts list at the date of
298notification of the surplus parts return program by the
299manufacturer or distributor to the dealer, or the date of the
300dealer's parts return request, whichever is applicable, is
301eligible for return and credit specified. However, returned
302parts must be in new and unused condition and must have been
303purchased from the manufacturer, distributor, or wholesaler to
304whom they are returned.
305     (e)  The minimum lawful credit to be allowed for returned
306parts is 85 percent of the wholesale cost of the parts as listed
307in the manufacturer's, distributor's, or wholesaler's current
308returnable parts list at the date of the notification of the
309surplus parts return program by the manufacturer, wholesaler, or
310distributor to the dealer, or the date of the dealer's parts
311return request, whichever is applicable.
312     (f)  Applicable credit must be issued or furnished by the
313manufacturer or distributor to the dealer within 60 days after
314receipt of her or his returned parts.
315     (g)  The packing and return freight expense incurred in any
316return of surplus parts pursuant to the terms of this section
317shall be borne by the dealer.
318     Section 7.  Section 686.407, Florida Statutes, is amended
319to read:
320     686.407  Repurchase of inventory upon termination of
321franchise agreement; establishment or relocation of dealership;
322sale or lease of new equipment.--
323     (1)  Whenever any tractor or farm equipment dealer enters
324into a franchise agreement with a manufacturer, distributor, or
325wholesaler in which agreement the dealer agrees to maintain an
326inventory of tractors, farm equipment, or repair parts and the
327franchise is subsequently terminated, the manufacturer,
328distributor, or wholesaler shall repurchase the inventory as
329provided in this section. However, the dealer may keep the
330inventory if he or she desires. If the dealer has any
331outstanding debts to the manufacturer, distributor, or
332wholesaler, then the repurchase amount may be credited to the
333dealer's account.
334     (2)  If the dealer decides not to keep the inventory, the
335manufacturer, distributor, or wholesaler shall repurchase that
336inventory previously purchased from such manufacturer,
337distributor, or wholesaler him or her and held by the dealer on
338the date of termination of the contract. The manufacturer,
339distributor, or wholesaler shall pay:
340     (a)  One hundred percent of the actual dealer cost,
341including freight, of all new, unsold, undamaged, and complete
342tractors, or other items of farm equipment which is are
343resalable, less a reasonable allowance for depreciation due to
344usage by the dealer and deterioration directly attributable to
345weather conditions at the dealer's location; and
346     (b)  Eighty-five percent of the current wholesale price of
347all new, unused, and undamaged repair parts and accessories
348which are listed in the manufacturer's, distributor's, or
349wholesaler's current returnable parts list. The manufacturer,
350distributor, or wholesaler shall also pay the dealer 6 percent
351of the current wholesale price on all new, unused, and undamaged
352repair parts returned to cover the cost of handling, packing,
353and loading. However, the manufacturer, distributor, or
354wholesaler shall have the option of performing the handling,
355packing, and loading in lieu of paying the 6-percent sum imposed
356in this subsection for these services; and, in this event, after
357receipt by the dealer of the full repurchase amount as provided
358in this section, the dealer shall make available to the
359manufacturer, distributor, or wholesaler, at the dealer's
360address or at the places at which the tractors and equipment is
361are located, all tractors and items of farm equipment previously
362purchased by the dealer.
363     (3)  Upon payment within a reasonable time of the
364repurchase amount to the dealer, the title and right of
365possession to the repurchased inventory shall transfer or be
366transferred to the manufacturer, distributor, or wholesaler, as
367the case may be.
368     (4)  The provisions of this section do not require the
369repurchase from a dealer of:
370     (a)  Any repair part which has a limited storage life or is
371otherwise subject to deterioration.
372     (a)(b)  Any single repair part which is priced as a set of
373two or more items.
374     (b)(c)  Any repair part which because of its condition is
375not resalable as a new part without repackaging or
376reconditioning.
377     (c)(d)  Any inventory for which the dealer is unable to
378furnish evidence, reasonably satisfactory to the manufacturer,
379distributor, or wholesaler, of good title, free and clear of all
380claims, liens, and encumbrances.
381     (d)(e)  Any inventory which the dealer desires to keep, if
382the dealer has a contractual right to keep it.
383     (e)(f)  Any tractor or item of farm equipment which is not
384in new, unused, undamaged, and complete condition.
385     (f)(g)  Any tractor or item of farm equipment which has
386been used by the dealer or has deteriorated because of weather
387conditions at the dealer's location unless the manufacturer,
388distributor, or wholesaler receives a reasonable allowance for
389such usage or deterioration.
390     (g)(h)  Any repair parts which are not in new, unused, and
391undamaged condition.
392     (h)(i)  Any inventory which was ordered by the dealer on or
393after the date of receipt of the notification of termination of
394the franchise or contractual agreement.
395     (i)(j)  Any inventory which was acquired by the dealer from
396any source other than the manufacturer, distributor, or
397wholesaler.
398     (5)  If any manufacturer, distributor, or wholesaler fails
399or refuses to repurchase any inventory covered under the
400provisions of this section within 60 days after termination of a
401dealer's contract, he or she is civilly liable for 100 percent
402of the current wholesale price of the inventory plus any freight
403charges paid by the dealer, such the dealer's reasonable
404attorney's fees, court costs, and interest on the current
405wholesale price computed at the legal interest rate provided in
406s. 687.01 from the 61st day after termination.
407     (6)  A manufacturer, distributor, or wholesaler that
408intends to establish a new dealership or to relocate a current
409dealership for a particular product line or make of equipment
410within the relevant market area of an existing dealership of the
411same product line or make of equipment shall give written notice
412of such intent by certified mail or overnight delivery, return
413receipt requested, to such existing dealership. The notice shall
414be delivered at least 180 days prior to establishment of a new
415dealership or relocation of a current dealership. The notice
416shall include:
417     (a)  The specific location of the additional or relocated
418dealership.
419     (b)  The date on or after which the additional or relocated
420dealership will commence operation at the new location.
421     (c)  The identity of all existing dealerships in whose
422relevant market area the new or relocated dealership is to be
423located.
424     (d)  The names and addresses of the dealer and principals
425in the new or relocated dealership.
426     (7)  A manufacturer, distributor, or wholesaler may sell or
427lease new equipment for use within the state. If the equipment
428is prepared for delivery or serviced by a dealer, the
429manufacturer, distributor, or wholesaler shall reasonably
430compensate the dealer for the preparation and delivery of the
431new equipment and pay to the dealer a reasonable commission on
432the sale or lease of the new equipment which shall not be less
433than 8 percent of the sale price of the equipment. This
434compensation must be paid or credited in the same manner as
435provided in this section. The manufacturer, distributor, or
436wholesaler, if practicable, shall utilize the dealer in the
437relevant market area for preparation and delivery. For purposes
438of this subsection, equipment is considered to be used primarily
439within a dealer's relevant market area if the new equipment is
440located or housed at a user's facility located within the
441relevant market area. This subsection shall not be applicable to
442any liquidation or sale of equipment which has been ordered by
443any court.
444     Section 8.  Section 686.409, Florida Statutes, is amended
445to read:
446     686.409  Compensation for inventory upon refusal to renew,
447termination of, or restriction on transfer of a franchise.--It
448is unlawful for the manufacturer, distributor, wholesaler, or
449franchisor, without due cause, to fail to renew a franchise on
450terms then equally available to all of its her or his tractor or
451farm equipment dealers, to terminate a franchise, or to restrict
452the transfer of a franchise unless the franchisee receives fair
453and reasonable compensation for the inventory of the business.
454As used in this section, the term "due cause" shall be construed
455in accordance with the definition of due cause contained in s.
456686.413(3)(c)2.
457     Section 9.  Section 686.413, Florida Statutes, is amended
458to read:
459     686.413  Unlawful acts and practices.--Unfair methods of
460competition and unfair or deceptive acts or practices in the
461conduct of the manufacturing, distribution, wholesaling,
462franchising, sale, and advertising of tractors and farm
463equipment are declared to be unlawful.
464     (1)  It is deemed a violation of this section for any
465manufacturer, factory branch, factory representative,
466distributor, distributor branch, distributor representative,
467wholesaler, or tractor or farm equipment dealer to engage in any
468action which is arbitrary, capricious, in bad faith, or
469unconscionable and which causes damage in terms of law or equity
470to any of the parties or to the public.
471     (2)  It is deemed a violation of this section for a
472manufacturer, factory branch or division, distributor,
473distributor branch or division, wholesaler, or wholesale branch
474or division, or officer, agent, or other representative thereof,
475to coerce, compel, or attempt to coerce or compel any tractor or
476farm equipment dealer:
477     (a)  To order or accept delivery of any tractor or item of
478farm equipment, parts or accessories therefor, or other
479commodity or commodities which such tractor or farm equipment
480dealer has not voluntarily ordered.
481     (b)  To order or accept delivery of any tractor or farm
482equipment with special features, accessories, or equipment not
483included in the base list price of such tractor or farm
484equipment as publicly advertised by the manufacturer of the
485tractor or equipment.
486     (3)  It is deemed a violation of this section for a
487manufacturer, factory branch or division, distributor,
488distributor branch or division, wholesaler, or wholesale branch
489or division, or officer, agent, or other representative thereof:
490     (a)  To refuse to deliver to any tractor or farm equipment
491dealer having a franchise or contractual agreement for the
492retail sale of new tractors and farm equipment sold or
493distributed by such manufacturer, factory branch or division,
494distributor branch or division, or wholesale branch or division,
495in reasonable quantities and within a reasonable time after
496receipt of the dealer's order, any tractor or item of farm
497equipment covered by such franchise or contract specifically
498advertised or represented by such manufacturer, factory branch
499or division, distributor, distributor branch or division,
500wholesaler, or wholesale branch or division to be available for
501immediate delivery. However, the failure to deliver any such
502tractor or item of farm equipment is not considered a violation
503of this section if such failure is due to a prudent and
504reasonable restriction on the extension of credit by the
505franchisor to the dealer, an act of God, a work stoppage or
506delay due to a strike or labor difficulty, a bona fide shortage
507of materials, a freight embargo, or another cause over which the
508manufacturer, distributor, or wholesaler, or any agent thereof,
509has no control whatsoever.
510     (b)  To coerce, compel, or attempt to coerce or compel any
511tractor or farm equipment dealer to enter into any agreement,
512whether written or oral, supplementary to an existing franchise
513with such manufacturer, factory branch or division, distributor,
514distributor branch or division, wholesaler, or wholesale branch
515or division, or officer, agent, or other representative thereof;
516or to do any other act prejudicial to such dealer by threatening
517to cancel any franchise or contractual agreement existing
518between such manufacturer, factory branch or division,
519distributor, distributor branch or division, wholesaler, or
520wholesale branch or division and such dealer. However, notice in
521good faith to any tractor or farm equipment dealer of such
522dealer's violation or breach of any terms or provisions of such
523franchise or contractual agreement does not constitute a
524violation of this section if such notice is in writing and is
525mailed by registered or certified mail to such dealer at her or
526his current business address and such notice contains the
527specific facts as to the dealer's violation or breach of such
528franchise or contractual agreement.
529     (c)1.  To terminate or cancel the franchise or selling
530agreement of any tractor or farm equipment dealer without due
531cause, as defined in subparagraph 2. The termination nonrenewal
532of a franchise or selling agreement, without due cause,
533constitutes an unfair termination or cancellation, regardless of
534the specified time period of such franchise or selling
535agreement. Except when the ground for such termination or
536cancellation falls within sub-subparagraph 2.c., such
537manufacturer, factory branch or division, distributor,
538distributor branch or division, wholesaler, or wholesale branch
539or division, or officer, agent, or other representative thereof,
540shall notify a tractor or farm equipment dealer in writing of
541the termination or cancellation of the franchise or selling
542agreement of such dealer at least 180 90 days before the
543effective date of the termination or cancellation, stating the
544specific ground for such termination or cancellation. In no
545event shall the contractual term of any such franchise or
546selling agreement expire, without the written consent of the
547tractor or farm equipment dealer involved, prior to the
548expiration of at least 180 90 days following such written
549notice. During the 180-day 90-day period, either party may, in
550appropriate circumstances, petition a court of competent
551jurisdiction to modify such 180-day 90-day stay or to extend it
552pending a final determination of such proceeding on the merits.
553The court shall have authority to grant temporary, preliminary,
554and final injunctive relief. Should a dealer cure the claimed
555deficiency within the 180-day period, the franchise or selling
556agreement shall not be terminated.
557     2.  As used in this subparagraph, tests for determining
558what constitutes due cause for a manufacturer or distributor to
559terminate, cancel, or refuse to renew a franchise agreement
560include whether the dealer:
561     a.  Has transferred an ownership interest in the dealership
562without the manufacturer's or distributor's consent;
563     b.  Has made a material misrepresentation in applying for
564or in acting under the franchise agreement;
565     c.  Has filed a voluntary petition in bankruptcy or has had
566an involuntary petition in bankruptcy filed against her or him
567which has not been discharged within 60 days after the filing,
568is in default under the provisions of a security agreement in
569effect with the manufacturer or distributor, or is in
570receivership;
571     d.  Has engaged in unfair business or trade practices;
572     e.  Has inadequately represented the manufacturer's or
573distributor's products with respect to sales, service, or
574warranty work;
575     f.  Has inadequate and insufficient sales and service
576facilities and personnel;
577     g.  Has failed to comply with an applicable federal, state,
578or local licensing law;
579     h.  Has been convicted of a crime, the effect of which
580would be detrimental to the manufacturer, distributor, or
581dealership;
582     i.  Has failed to operate in the normal course of business
583for 10 consecutive business days or has terminated her or his
584business;
585     j.  Has relocated her or his place of business without the
586manufacturer's or distributor's consent; or
587     k.  Has failed to comply with the terms that are not in
588conflict with this chapter or the terms of the dealership or
589franchise agreement.
590     3.  Before termination of the franchise or selling
591agreement because of the dealer's failure to meet marketing
592criteria or market penetration, the manufacturer, factory branch
593or division, distributor, distributor branch or division,
594wholesaler, or wholesale branch or division, or officer, agent,
595or other representative thereof, shall provide written notice of
596such intention at least 1 year in advance. After such notice,
597the manufacturer or other entity issuing the notice shall make
598good faith efforts to work with the dealer to gain the desired
599market share, including, without limitation, reasonably making
600available to the dealer an adequate inventory of new equipment
601and parts and competitive marketing programs. The manufacturer
602or other entity, at the end of the 1-year notice period, may
603terminate or elect not to renew the agreement only upon further
604written notice specifying the reasons for determining that the
605dealer failed to meet reasonable marketing criteria or market
606penetration. Such written notice must specify that termination
607is effective 90 days from the date of the notice. Either party
608may petition the court pursuant to subparagraph (c)1. for the
609relief specified in such subparagraph. Should a dealer cure the
610claimed deficiency within the 90-day period, the franchise or
611selling agreement shall not be terminated.
612     (d)  To resort to or use any false or misleading
613advertisement in connection with its her or his business as such
614manufacturer, factory branch or division, distributor,
615distributor branch or division, wholesaler, or wholesale branch
616or division, or officer, agent, or other representative thereof.
617     (e)  To offer to sell or to sell any new tractor or item of
618farm equipment, or parts or accessories therefor, to any other
619tractor or farm equipment dealer at a lower actual price
620therefor than the actual price offered to any other tractor or
621farm equipment dealer for the same model tractor or farm
622equipment identically equipped or to utilize any device,
623including, but not limited to, sales promotion plans or
624programs, which results in such lesser actual price or results
625in a fixed price predetermined solely by the manufacturer or
626distributor. However, the provisions of this paragraph do not
627apply to sales to a tractor or farm equipment dealer for resale
628to any unit or agency of the United States Government, the state
629or any of its political subdivisions, or any municipality
630located within this state. Further, the provisions of this
631paragraph do not apply so long as a manufacturer, distributor,
632or wholesaler, or any agent thereof, sells or offers to sell
633such new tractor or farm equipment, parts, or accessories to all
634of its her or his franchised tractor or farm equipment dealers
635at an equal price.
636     (f)  To willfully discriminate, either directly or
637indirectly, in price, programs, or terms of sale offered to
638franchisees, when the effect of such discrimination may be to
639substantially lessen competition or to give to one holder of a
640franchise any economic, business, or competitive advantage not
641offered to all holders of the same or similar franchise.
642     (g)  To prevent or attempt to prevent, by contract or
643otherwise, any tractor or farm equipment dealer from changing
644the capital structure of her or his dealership or the means by
645or through which the dealer finances the operation of her or his
646dealership, provided the dealer at all times meets any
647reasonable capital standards agreed to between the dealership
648and the manufacturer, distributor, or wholesaler and provided
649such change by the dealer does not result in a change in the
650executive management of the dealership.
651     (h)  To prevent or attempt to prevent, by contract or
652otherwise, any tractor or farm equipment dealer or any officer,
653member partner, or stockholder of any tractor or farm equipment
654dealer from selling or transferring any part of the interest of
655any of them to any other person or persons or party or parties.
656However, no dealer, officer, partner, or stockholder has the
657right to sell, transfer, or assign the franchise or power of
658management or control thereunder without the written consent of
659the manufacturer, distributor, or wholesaler, except that such
660consent may not be unreasonably withheld.
661     (i)  To impose, directly or indirectly, unreasonable
662restrictions on the dealer relative to transfer, renewal,
663termination, location, or site control.
664     (j)  To prevent a dealer from having an investment in or
665holding a dealership contract for the sale of competing product
666lines or makes of equipment, or to require a dealer to provide
667separate facilities for competing product lines or makes of
668equipment.
669     (k)(i)  To obtain money, goods, services, anything of
670value, or any other benefit from any other person with whom the
671tractor or farm equipment dealer does business or employs on
672account of or in relation to the transactions between the
673dealer, the franchisor, and such other person.
674     (l)(j)  To require a tractor and farm equipment dealer to
675assent to a release, assignment, novation, waiver, or estoppel
676which would relieve any person from liability imposed by ss.
677686.40-686.418.
678     (4)  It is deemed a violation of this section for a tractor
679or farm equipment dealer:
680     (a)  To require a retail purchaser of a new tractor or item
681of farm equipment, as a condition of sale and delivery of the
682tractor or equipment, also to purchase special features,
683appliances, equipment, parts, or accessories not desired or
684requested by the purchaser. However, this prohibition does not
685apply to special features, appliances, equipment, parts, or
686accessories which are already installed when the tractor or item
687of farm equipment is received by the dealer from the
688manufacturer, distributor, or wholesaler of such tractor or
689equipment.
690     (b)  To represent and sell as new and unused any tractor or
691item of farm equipment which has been used and operated for
692demonstration or other purposes without stating to the purchaser
693prior to the sale the approximate amount of use the equipment
694tractor or item of farm machinery has experienced or undergone.
695     (c)  To resort to or use any false or misleading
696advertisement in connection with her or his business as such
697tractor or farm equipment dealer.
698     Section 10.  Section 686.418, Florida Statutes, is amended
699to read:
700     686.418  Effect of act on other remedies.--Sections 686.40-
701686.418 are supplemental to and do not preempt local ordinances
702dealing with prohibited or unlawful conduct in the
703manufacturing, distribution, wholesaling, advertising, or sale
704of tractors and other items of farm equipment if such ordinances
705are not inconsistent with such sections.
706     Section 11.  Subsection (5) of section 316.515, Florida
707Statutes, is amended to read:
708     316.515  Maximum width, height, length.--
709     (5)  IMPLEMENTS OF HUSBANDRY, AGRICULTURAL TRAILERS, SAFETY
710REQUIREMENTS.--Notwithstanding any other provisions of law,
711straight trucks, agricultural tractors, and cotton module
712movers, not exceeding 50 feet in length, or any combination of
713up to and including three implements of husbandry including the
714towing power unit, and any single agricultural trailer, with a
715load thereon or any agricultural implements attached to a towing
716power unit not exceeding 130 inches in width, or a self-
717propelled agricultural implement or an agricultural tractor not
718exceeding 130 inches in width, is authorized for the purpose of
719transporting peanuts, grains, soybeans, cotton, hay, straw, or
720other perishable farm products from their point of production to
721the first point of change of custody or of long-term storage,
722and for the purpose of returning to such point of production, or
723for the purpose of moving such tractors, movers, and implements
724from one point of agricultural production to another, by a
725person engaged in the production of any such product or custom
726hauler, if such vehicle or combination of vehicles otherwise
727complies with this section. Such vehicles shall be operated in
728accordance with all safety requirements prescribed by law and
729Department of Transportation rules. The Department of
730Transportation may issue overlength permits for cotton module
731movers greater than 50 feet but not more than 55 feet in overall
732length.
733     Section 12.  This act shall take effect July 1, 2004.


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