HB 1187

1
A bill to be entitled
2An act relating to agricultural equipment manufacturers,
3distributors, and dealers; amending s. 686.40, F.S.;
4providing a popular name; amending s. 686.401, F.S.;
5clarifying intent of the Agricultural Equipment
6Manufacturers and Dealers Act to provide for regulation of
7the conduct of manufacturers, distributors, and dealers of
8equipment primarily designed for or used in agriculture;
9amending s. 686.402, F.S.; revising and adding
10definitions; amending s. 686.403, F.S.; clarifying
11provisions relating to application; amending s. 686.405,
12F.S.; providing that it is unlawful to deny, delay payment
13for, or restrict warranty claims under certain
14circumstances; providing for audit of warranty claims;
15amending s. 686.406, F.S.; clarifying provisions relating
16to surplus parts; amending s. 686.407, F.S.; providing
17requirements for the establishment of a new dealership or
18relocation of a current dealership within a certain area;
19providing requirements for the sale or lease of new
20equipment; amending s. 686.409, F.S.; clarifying
21provisions relating to compensation for inventory under
22certain circumstances; amending s. 686.413, F.S.;
23providing additional unlawful acts and practices in the
24conduct of the manufacturing, distribution, wholesaling,
25franchising, sale, and advertising of equipment; providing
26requirements for termination of a franchise or selling
27agreement under certain circumstances; amending s.
28686.418, F.S.; clarifying provisions relating to the
29effect of the act on local ordinances; amending s.
30316.515, F.S.; revising agricultural equipment qualifying
31for maximum width and length exemption; providing an
32effective date.
33
34Be It Enacted by the Legislature of the State of Florida:
35
36     Section 1.  Section 686.40, Florida Statutes, is amended to
37read:
38     686.40  Agricultural Farm Equipment Manufacturers and
39Dealers Act; short title.--Sections 686.40-686.418 shall be
40known by the popular name and may be cited as the "Agricultural
41Farm Equipment Manufacturers and Dealers Act."
42     Section 2.  Subsection (1) of section 686.401, Florida
43Statutes, is amended to read:
44     686.401  Legislative finding and intent; construction of
45ss. 686.40-686.418.--
46     (1)  The Legislature finds and declares that the
47distribution and sale of tractors and farm equipment primarily
48designed for or used in agriculture in this state vitally
49affects the general economy of the state, the public interest,
50and the public welfare and that, in the exercise of its police
51power, it is necessary to regulate the conduct of tractor and
52farm equipment manufacturers, distributors, and dealers of such
53equipment, and their representatives, doing business in this
54state in order to prevent fraud, unfair business practices,
55unfair methods of competition, impositions, and other abuses
56upon its citizens.
57     Section 3.  Section 686.402, Florida Statutes, is amended
58to read:
59     686.402  Definitions of terms used in ss. 686.40-
60686.418.--In construing ss. 686.40-686.418, unless the context
61In construing ss. 686.40-686.418, unless the context otherwise
62requires, the word, phrase, or term:
63     (1)(16)  "Tractor or farm equipment Dealer" means a person
64who sells, solicits, or advertises the sale of new and used
65tractors and farm equipment to the consuming public, but does
66not include:
67     (a)  A receiver, trustee, administrator, executor, personal
68representative, guardian, or other person appointed by or acting
69under judgment, decree, or order of any court.
70     (a)(b)  A public officer while performing her or his duties
71as such officer.
72     (b)(c)  A person making casual or isolated sales of her or
73his own tractors or items of farm equipment not subject to sales
74tax under the laws of this state.
75     (c)(d)  A person engaged in the auction sale of tractors
76and farm equipment.
77     (d)(e)  A dealer in used tractors and farm equipment.
78     (e)  A mass-market retailer.
79     (2)  "Dealership" means the business of selling or
80attempting to effect the sale by a dealer of new equipment or
81the right conferred by written or oral agreement with the
82manufacturer, distributor, or wholesaler, for a definite or
83indefinite period of time, to sell or attempt to effect the sale
84of new equipment.
85     (3)(1)  "Distributor" or "wholesaler" means any person,
86firm, association, corporation, or company that sells or
87distributes new tractors and farm equipment to tractor or farm
88equipment dealers and that maintains distributor representatives
89within this state.
90     (4)(2)  "Distributor branch" means a branch office
91maintained by a distributor or wholesaler which sells or
92distributes new tractors and farm equipment to tractor or farm
93equipment dealers.
94     (5)(3)  "Distributor representative" means a representative
95employed by a distributor, distributor branch, or wholesaler.
96     (6)  "Farm Equipment" means those tractors or farm
97implements which are primarily designed for or used use in
98agriculture. Equipment designed for or used in off-road
99construction, mining, utility, and industrial purposes is not
100included in this definition.
101     (7)(4)  "Factory branch" means a branch office maintained
102by a manufacturer which manufactures and assembles tractors and
103farm equipment for sale to distributors of tractors or to farm
104equipment dealers or which is maintained for directing and
105supervising the representatives of the manufacturer.
106     (8)(5)  "Factory representative" means a representative
107employed by a manufacturer or factory branch for the purpose of
108making or promoting the sale of tractors and farm equipment or
109for supervising, servicing, introducing, or contracting with
110tractor or farm equipment dealers or prospective dealers.
111     (9)(7)  "Franchise" means a contract or agreement, either
112expressed or implied, whether oral or written, for a definite or
113indefinite period of time in which a manufacturer, distributor,
114or wholesaler grants to a tractor or farm equipment dealer
115permission to use a trade name, service mark, trademark, or
116related characteristic and in which there is a common interest
117or community of interest in the marketing of tractors or farm
118equipment or services related thereto at wholesale or retail,
119whether by leasing, sale, or otherwise.
120     (10)(8)  "Franchisee" means a tractor or farm equipment
121dealer to whom a franchise is offered or granted.
122     (11)(9)  "Franchisor" means a manufacturer, distributor, or
123wholesaler who grants a franchise to a tractor or farm equipment
124dealer.
125     (12)(10)  "Fraud" means and includes actual fraud or
126constructive fraud as normally defined, in addition to the
127following:
128     (a)  A misrepresentation in any manner, whether
129intentionally false or arising from gross negligence, of a
130material fact.
131     (b)  A promise or representation not made honestly and in
132good faith.
133     (c)  An intentional failure to disclose a material fact.
134     (d)  Any artifice employed to deceive another.
135     (13)(11)  "Manufacturer" means any person engaged in the
136business of manufacturing or assembling new and unused tractors
137and farm equipment.
138     (14)(12)  "New tractor or farm equipment" means a tractor
139or item of farm equipment which has not been previously sold to
140and put into regular use or service by any person, except a
141distributor, wholesaler, or tractor or farm equipment dealer for
142resale.
143     (15)(13)  "Person" means a natural person, corporation,
144association, partnership, trust, or other business entity and,
145in the case of a business entity, includes any other entity in
146which the business entity has a majority interest or which it
147effectively controls, as well as the individual officers,
148directors, and other persons in active control of the activities
149of each such entity.
150     (16)  "Relevant market area" means the geographic area for
151which a dealer is assigned responsibility for selling or
152soliciting or advertising the sale of equipment under the terms
153of a franchise.
154     (17)(14)  "Sale" means and includes the issuance, transfer,
155agreement for transfer, exchange, pledge, hypothecation, or
156mortgage in any manner or form, whether by transfer in trust or
157otherwise, of any tractor or item of farm equipment or interest
158therein, or of any franchise related thereto, for a
159consideration and any option, subscription or other contract, or
160solicitation, looking to a sale, or offer or attempt to sell in
161any form, whether in oral or written form for a consideration.
162     (18)  "Termination" means the termination, cancellation,
163nonrenewal, or noncontinuation of a contract or agreement.
164     (19)(15)  "Tractor" means a vehicle that is operated
165principally upon a farm, grove, or orchard in connection with
166agriculture agricultural or horticultural pursuits.
167     Section 4.  Section 686.403, Florida Statutes, is amended
168to read:
169     686.403  Application of ss. 686.40-686.418.--
170     (1)  Any person who engages directly or indirectly in
171purposeful agreements or contracts within this state in
172connection with the sale or advertising for sale of new
173equipment tractors and farm machinery and parts is subject to
174ss. 686.40-686.418 and to the jurisdiction of the courts of this
175state for violations of such sections in accordance with the
176provisions of the laws of this state.
177     (2)  Sections 686.40-686.418 apply to all written or oral
178agreements between a manufacturer, distributor, or wholesaler
179with a tractor or farm equipment dealer, including, but not
180limited to, the franchise offering; the franchise agreement;
181sales of goods, services, and advertising; leases or mortgages
182of real or personal property; promises to pay; security
183interests; pledges; insurance contracts; advertising contracts;
184construction or installation contracts; servicing contracts; and
185all other such agreements in which the manufacturer,
186distributor, or wholesaler has any direct or indirect interest.
187     (3)  Sections 686.40-686.418 apply to all continuing
188contracts now in effect which have no expiration date and to all
189other contracts entered into, renewed, or amended after July 1,
1902004 or renewed after July 1, 1984.
191     Section 5.  Section 686.405, Florida Statutes, is amended
192to read:
193     686.405  Warranty agreements; claims; compensation of
194dealers.--
195     (1)  Every manufacturer, distributor, wholesaler, factory
196branch or division, distributor branch or division, or wholesale
197branch or division shall provide a fair and reasonable warranty
198agreement on any new tractor or item of farm equipment which it
199sells and shall fairly compensate each of its tractor or farm
200equipment dealers for labor and parts used in fulfilling such
201warranty agreements.
202     (2)(a)  Each claim for payment under such warranty
203agreements made by a tractor or farm equipment dealer for such
204labor and parts shall be paid within 30 days following its
205approval. Each such claim shall be either approved or
206disapproved within 30 days after its receipt. When any such
207claim is disapproved, the tractor or farm equipment dealer who
208submitted it shall be notified in writing of such disapproval
209within such period, and such notice shall state the specific
210grounds upon which the disapproval is based.
211     (b)  Any special handling of claims required of the dealer
212by the manufacturer, distributor, wholesaler, factory branch or
213division, distributor branch or division, or wholesale branch or
214division, which handling is not uniformly required of all
215dealers of that make, may be enforced only after 30 days' notice
216in writing to the dealer and upon good and sufficient reason.
217     (3)(a)  The minimum lawful basis for compensating a dealer
218for warranty work, as provided for in this section, shall be
219calculated for labor in accordance with the reasonable and
220customary amount of time required to complete such work,
221expressed in hours and fractions of hours multiplied by the
222dealer's established hourly retail labor rate. Prior to filing a
223claim for reimbursement for warranty work, the dealer must
224notify the applicable manufacturer, distributor, or wholesaler
225of his or her hourly retail labor rate.
226     (b)  The minimum lawful basis for compensation to the
227dealer for parts used in fulfilling such warranty work shall be
228at the dealer's costs for such parts, including all freight and
229handling charges applicable to such parts, plus 15 percent of
230the sum of such costs and charges to reimburse the dealer's
231reasonable cost of doing business and providing such warranty
232service on behalf of the manufacturer.
233     (4)  It shall be unlawful to deny, delay payment for, or
234restrict a claim by a dealer for warranty service or parts,
235incentives, hold-backs, or other amounts owed to a dealer unless
236the denial, delay, or restriction is the direct result of a
237material defect in the claim that affects its validity.
238     (5)  A manufacturer, distributor, or wholesaler may audit
239warranty claims submitted by its dealers only for a period of up
240to 1 year following payment of such claims and may charge back
241to its dealers only those amounts based upon paid claims shown
242by the audit to be invalid. However, this limitation shall not
243apply in any case of fraudulent claims.
244     (6)  Any audit of a dealer by or on behalf of a
245manufacturer, distributor, or wholesaler for sales incentives,
246service incentives, rebates, or other forms of incentive
247compensation shall be completed not later than 12 months after
248the date of termination of such incentive compensation program.
249However, this limitation shall not apply in any case of
250fraudulent claims.
251     Section 6.  Section 686.406, Florida Statutes, is amended
252to read:
253     686.406  Parts; availability; return.--
254     (1)  Every manufacturer shall specify, and every dealer
255shall provide and fulfill, reasonable predelivery and
256preparation obligations for its tractors and farm equipment
257prior to delivery of the tractors and equipment to retail
258purchasers.
259     (2)  Every manufacturer shall provide for the availability
260of repair parts throughout the reasonable useful life of any
261tractor or farm equipment sold.
262     (3)  Every manufacturer or distributor shall provide to
263each of its her or his dealers, annually, an opportunity to
264return a portion of its their surplus parts inventories for
265credit. The surplus procedure shall be administered as follows:
266     (a)  The manufacturer or distributor may specify, and
267thereupon notify each of its her or his dealers of, a time
268period of at least 60 days' duration during which each of its
269the dealers may submit its their surplus parts list lists and
270return the their surplus parts to the manufacturer or
271distributor.
272     (b)  If a manufacturer or distributor has not notified a
273dealer of a specific time period for returning surplus parts
274within the preceding 12 months, the manufacturer or distributor
275she or he shall authorize and allow the dealer's surplus parts
276return request within 30 days after receipt of such request from
277such the dealer.
278     (c)  A manufacturer or distributor must allow surplus parts
279return authority on a dollar value of parts equal to 6 percent
280of the total dollar value of parts purchased from the
281manufacturer or distributor by the dealer during the 12-month
282period immediately preceding the notification to such the dealer
283by the manufacturer or distributor of the surplus parts return
284program, or the month such the dealer's return request is made,
285whichever is applicable. However, the dealer may, at her or his
286option, elect to return a dollar value of her or his surplus
287parts equal to less than 6 percent of the total dollar value of
288parts purchased by such the dealer from the manufacturer or
289distributor during the preceding 12-month period as provided
290herein.
291     (d)  No obsolete or superseded part may be returned, but
292any part listed in the manufacturer's, distributor's, or
293wholesaler's current returnable parts list at the date of
294notification of the surplus parts return program by the
295manufacturer or distributor to the dealer, or the date of the
296dealer's parts return request, whichever is applicable, is
297eligible for return and credit specified. However, returned
298parts must be in new and unused condition and must have been
299purchased from the manufacturer, distributor, or wholesaler to
300whom they are returned.
301     (e)  The minimum lawful credit to be allowed for returned
302parts is 85 percent of the wholesale cost of the parts as listed
303in the manufacturer's, distributor's, or wholesaler's current
304returnable parts list at the date of the notification of the
305surplus parts return program by the manufacturer, wholesaler, or
306distributor to the dealer, or the date of the dealer's parts
307return request, whichever is applicable.
308     (f)  Applicable credit must be issued or furnished by the
309manufacturer or distributor to the dealer within 60 days after
310receipt of her or his returned parts.
311     (g)  The packing and return freight expense incurred in any
312return of surplus parts pursuant to the terms of this section
313shall be borne by the dealer.
314     Section 7.  Section 686.407, Florida Statutes, is amended
315to read:
316     686.407  Repurchase of inventory upon termination of
317franchise agreement; establishment or relocation of dealership;
318sale or lease of new equipment.--
319     (1)  Whenever any tractor or farm equipment dealer enters
320into a franchise agreement with a manufacturer, distributor, or
321wholesaler in which agreement the dealer agrees to maintain an
322inventory of tractors, farm equipment, or repair parts and the
323franchise is subsequently terminated, the manufacturer,
324distributor, or wholesaler shall repurchase the inventory as
325provided in this section. However, the dealer may keep the
326inventory if he or she desires. If the dealer has any
327outstanding debts to the manufacturer, distributor, or
328wholesaler, then the repurchase amount may be credited to the
329dealer's account.
330     (2)  If the dealer decides not to keep the inventory, the
331manufacturer, distributor, or wholesaler shall repurchase that
332inventory previously purchased from such manufacturer,
333distributor, or wholesaler him or her and held by the dealer on
334the date of termination of the contract. The manufacturer,
335distributor, or wholesaler shall pay:
336     (a)  One hundred percent of the actual dealer cost,
337including freight, of all new, unsold, undamaged, and complete
338tractors, or other items of farm equipment which is are
339resalable, less a reasonable allowance for depreciation due to
340usage by the dealer and deterioration directly attributable to
341weather conditions at the dealer's location; and
342     (b)  Eighty-five percent of the current wholesale price of
343all new, unused, and undamaged repair parts and accessories
344which are listed in the manufacturer's, distributor's, or
345wholesaler's current returnable parts list. The manufacturer,
346distributor, or wholesaler shall also pay the dealer 6 percent
347of the current wholesale price on all new, unused, and undamaged
348repair parts returned to cover the cost of handling, packing,
349and loading. However, the manufacturer, distributor, or
350wholesaler shall have the option of performing the handling,
351packing, and loading in lieu of paying the 6-percent sum imposed
352in this subsection for these services; and, in this event, after
353receipt by the dealer of the full repurchase amount as provided
354in this section, the dealer shall make available to the
355manufacturer, distributor, or wholesaler, at the dealer's
356address or at the places at which the tractors and equipment is
357are located, all tractors and items of farm equipment previously
358purchased by the dealer.
359     (3)  Upon payment within a reasonable time of the
360repurchase amount to the dealer, the title and right of
361possession to the repurchased inventory shall transfer or be
362transferred to the manufacturer, distributor, or wholesaler, as
363the case may be.
364     (4)  The provisions of this section do not require the
365repurchase from a dealer of:
366     (a)  Any repair part which has a limited storage life or is
367otherwise subject to deterioration.
368     (a)(b)  Any single repair part which is priced as a set of
369two or more items.
370     (b)(c)  Any repair part which because of its condition is
371not resalable as a new part without repackaging or
372reconditioning.
373     (c)(d)  Any inventory for which the dealer is unable to
374furnish evidence, reasonably satisfactory to the manufacturer,
375distributor, or wholesaler, of good title, free and clear of all
376claims, liens, and encumbrances.
377     (d)(e)  Any inventory which the dealer desires to keep, if
378the dealer has a contractual right to keep it.
379     (e)(f)  Any tractor or item of farm equipment which is not
380in new, unused, undamaged, and complete condition.
381     (f)(g)  Any tractor or item of farm equipment which has
382been used by the dealer or has deteriorated because of weather
383conditions at the dealer's location unless the manufacturer,
384distributor, or wholesaler receives a reasonable allowance for
385such usage or deterioration.
386     (g)(h)  Any repair parts which are not in new, unused, and
387undamaged condition.
388     (h)(i)  Any inventory which was ordered by the dealer on or
389after the date of receipt of the notification of termination of
390the franchise or contractual agreement.
391     (i)(j)  Any inventory which was acquired by the dealer from
392any source other than the manufacturer, distributor, or
393wholesaler.
394     (5)  If any manufacturer, distributor, or wholesaler fails
395or refuses to repurchase any inventory covered under the
396provisions of this section within 60 days after termination of a
397dealer's contract, he or she is civilly liable for 100 percent
398of the current wholesale price of the inventory plus any freight
399charges paid by the dealer, such the dealer's reasonable
400attorney's fees, court costs, and interest on the current
401wholesale price computed at the legal interest rate provided in
402s. 687.01 from the 61st day after termination.
403     (6)  A manufacturer, distributor, or wholesaler that
404intends to establish a new dealership or to relocate a current
405dealership for a particular product line or make of equipment
406within the relevant market area of an existing dealership of the
407same product line or make of equipment shall give written notice
408of such intent by certified mail or overnight delivery, return
409receipt requested, to such existing dealership. The notice shall
410be delivered at least 180 days prior to establishment of a new
411dealership or relocation of a current dealership. The notice
412shall include:
413     (a)  The specific location of the additional or relocated
414dealership.
415     (b)  The date on or after which the additional or relocated
416dealership will commence operation at the new location.
417     (c)  The identity of all existing dealerships in whose
418relevant market area the new or relocated dealership is to be
419located.
420     (d)  The names of the dealer and principals in the new or
421relocated dealership.
422     (7)  A manufacturer, distributor, or wholesaler may sell or
423lease new equipment for use within the state. If the
424manufacturer, distributor, or wholesaler makes a direct sale or
425lease of equipment, the manufacturer, distributor, or wholesaler
426shall pay to the dealer located within the relevant market area
427a commission of not less than 7 percent of the sale or lease
428price of the equipment. This payment shall cover any
429compensation to the dealer for the cost of customary preparation
430and delivery as well as any commission on the sale or lease.
431This compensation must be paid or credited in the same manner as
432provided in this section. The manufacturer, distributor, or
433wholesaler, if practicable, shall utilize the dealer in the
434relevant market area for preparation and delivery. For purposes
435of this subsection, equipment is considered to be used primarily
436within a dealer's relevant market area if the new equipment is
437located or housed at a user's facility located within the
438relevant market area. This subsection shall not be applicable to
439any liquidation or sale of equipment which has been ordered by
440any court.
441     Section 8.  Section 686.409, Florida Statutes, is amended
442to read:
443     686.409  Compensation for inventory upon refusal to renew,
444termination of, or restriction on transfer of a franchise.--It
445is unlawful for the manufacturer, distributor, wholesaler, or
446franchisor, without due cause, to fail to renew a franchise on
447terms then equally available to all of its her or his tractor or
448farm equipment dealers, to terminate a franchise, or to restrict
449the transfer of a franchise unless the franchisee receives fair
450and reasonable compensation for the inventory of the business.
451As used in this section, the term "due cause" shall be construed
452in accordance with the definition of due cause contained in s.
453686.413(3)(c)2.
454     Section 9.  Section 686.413, Florida Statutes, is amended
455to read:
456     686.413  Unlawful acts and practices.--Unfair methods of
457competition and unfair or deceptive acts or practices in the
458conduct of the manufacturing, distribution, wholesaling,
459franchising, sale, and advertising of tractors and farm
460equipment are declared to be unlawful.
461     (1)  It is deemed a violation of this section for any
462manufacturer, factory branch, factory representative,
463distributor, distributor branch, distributor representative,
464wholesaler, or tractor or farm equipment dealer to engage in any
465action which is arbitrary, capricious, in bad faith, or
466unconscionable and which causes damage in terms of law or equity
467to any of the parties or to the public.
468     (2)  It is deemed a violation of this section for a
469manufacturer, factory branch or division, distributor,
470distributor branch or division, wholesaler, or wholesale branch
471or division, or officer, agent, or other representative thereof,
472to coerce, compel, or attempt to coerce or compel any tractor or
473farm equipment dealer:
474     (a)  To order or accept delivery of any tractor or item of
475farm equipment, parts or accessories therefor, or other
476commodity or commodities which such tractor or farm equipment
477dealer has not voluntarily ordered.
478     (b)  To order or accept delivery of any tractor or farm
479equipment with special features, accessories, or equipment not
480included in the base list price of such tractor or farm
481equipment as publicly advertised by the manufacturer of the
482tractor or equipment.
483     (3)  It is deemed a violation of this section for a
484manufacturer, factory branch or division, distributor,
485distributor branch or division, wholesaler, or wholesale branch
486or division, or officer, agent, or other representative thereof:
487     (a)  To refuse to deliver to any tractor or farm equipment
488dealer having a franchise or contractual agreement for the
489retail sale of new tractors and farm equipment sold or
490distributed by such manufacturer, factory branch or division,
491distributor branch or division, or wholesale branch or division,
492in reasonable quantities and within a reasonable time after
493receipt of the dealer's order, any tractor or item of farm
494equipment covered by such franchise or contract specifically
495advertised or represented by such manufacturer, factory branch
496or division, distributor, distributor branch or division,
497wholesaler, or wholesale branch or division to be available for
498immediate delivery. However, the failure to deliver any such
499tractor or item of farm equipment is not considered a violation
500of this section if such failure is due to a prudent and
501reasonable restriction on the extension of credit by the
502franchisor to the dealer, an act of God, a work stoppage or
503delay due to a strike or labor difficulty, a bona fide shortage
504of materials, a freight embargo, or another cause over which the
505manufacturer, distributor, or wholesaler, or any agent thereof,
506has no control whatsoever.
507     (b)  To coerce, compel, or attempt to coerce or compel any
508tractor or farm equipment dealer to enter into any agreement,
509whether written or oral, supplementary to an existing franchise
510with such manufacturer, factory branch or division, distributor,
511distributor branch or division, wholesaler, or wholesale branch
512or division, or officer, agent, or other representative thereof;
513or to do any other act prejudicial to such dealer by threatening
514to cancel any franchise or contractual agreement existing
515between such manufacturer, factory branch or division,
516distributor, distributor branch or division, wholesaler, or
517wholesale branch or division and such dealer. However, notice in
518good faith to any tractor or farm equipment dealer of such
519dealer's violation or breach of any terms or provisions of such
520franchise or contractual agreement does not constitute a
521violation of this section if such notice is in writing and is
522mailed by registered or certified mail to such dealer at her or
523his current business address and such notice contains the
524specific facts as to the dealer's violation or breach of such
525franchise or contractual agreement.
526     (c)1.  To terminate or cancel the franchise or selling
527agreement of any tractor or farm equipment dealer without due
528cause, as defined in subparagraph 2. The termination nonrenewal
529of a franchise or selling agreement, without due cause,
530constitutes an unfair termination or cancellation, regardless of
531the specified time period of such franchise or selling
532agreement. Except when the ground for such termination or
533cancellation falls within sub-subparagraph 2.c., such
534manufacturer, factory branch or division, distributor,
535distributor branch or division, wholesaler, or wholesale branch
536or division, or officer, agent, or other representative thereof,
537shall notify a tractor or farm equipment dealer in writing of
538the termination or cancellation of the franchise or selling
539agreement of such dealer at least 180 90 days before the
540effective date of the termination or cancellation, stating the
541specific ground for such termination or cancellation. In no
542event shall the contractual term of any such franchise or
543selling agreement expire, without the written consent of the
544tractor or farm equipment dealer involved, prior to the
545expiration of at least 180 90 days following such written
546notice. During the 180-day 90-day period, either party may, in
547appropriate circumstances, petition a court of competent
548jurisdiction to modify such 180-day 90-day stay or to extend it
549pending a final determination of such proceeding on the merits.
550The court shall have authority to grant temporary, preliminary,
551and final injunctive relief. Should a dealer cure the claimed
552deficiency within the 180-day period, the franchise or selling
553agreement shall not be terminated.
554     2.  As used in this subparagraph, tests for determining
555what constitutes due cause for a manufacturer or distributor to
556terminate, cancel, or refuse to renew a franchise agreement
557include whether the dealer:
558     a.  Has transferred an ownership interest in the dealership
559without the manufacturer's or distributor's consent;
560     b.  Has made a material misrepresentation in applying for
561or in acting under the franchise agreement;
562     c.  Has filed a voluntary petition in bankruptcy or has had
563an involuntary petition in bankruptcy filed against her or him
564which has not been discharged within 60 days after the filing,
565is in default under the provisions of a security agreement in
566effect with the manufacturer or distributor, or is in
567receivership;
568     d.  Has engaged in unfair business or trade practices;
569     e.  Has inadequately represented the manufacturer's or
570distributor's products with respect to sales, service, or
571warranty work;
572     f.  Has inadequate and insufficient sales and service
573facilities and personnel;
574     g.  Has failed to comply with an applicable federal, state,
575or local licensing law;
576     h.  Has been convicted of a crime, the effect of which
577would be detrimental to the manufacturer, distributor, or
578dealership;
579     i.  Has failed to operate in the normal course of business
580for 10 consecutive business days or has terminated her or his
581business;
582     j.  Has relocated her or his place of business without the
583manufacturer's or distributor's consent; or
584     k.  Has failed to comply with the terms that are not in
585conflict with this chapter or the terms of the dealership or
586franchise agreement.
587     3.  Before termination of the franchise or selling
588agreement because of the dealer's failure to meet marketing
589criteria or market penetration, the manufacturer, factory branch
590or division, distributor, distributor branch or division,
591wholesaler, or wholesale branch or division, or officer, agent,
592or other representative thereof, shall provide written notice of
593such intention at least 1 year in advance. After such notice,
594the manufacturer or other entity issuing the notice shall make
595good faith efforts to work with the dealer to gain the desired
596market share, including, without limitation, reasonably making
597available to the dealer an adequate inventory of new equipment
598and parts and competitive marketing programs. The manufacturer
599or other entity, at the end of the 1-year notice period, may
600terminate or elect not to renew the agreement only upon further
601written notice specifying the reasons for determining that the
602dealer failed to meet reasonable marketing criteria or market
603penetration. Such written notice must specify that termination
604is effective 90 days from the date of the notice. Either party
605may petition the court pursuant to subparagraph (c)1. for the
606relief specified in such subparagraph. Should a dealer cure the
607claimed deficiency within the 90-day period, the franchise or
608selling agreement shall not be terminated.
609     (d)  To resort to or use any false or misleading
610advertisement in connection with its her or his business as such
611manufacturer, factory branch or division, distributor,
612distributor branch or division, wholesaler, or wholesale branch
613or division, or officer, agent, or other representative thereof.
614     (e)  To offer to sell or to sell any new tractor or item of
615farm equipment, or parts or accessories therefor, to any other
616tractor or farm equipment dealer at a lower actual price
617therefor than the actual price offered to any other tractor or
618farm equipment dealer for the same model tractor or farm
619equipment identically equipped or to utilize any device,
620including, but not limited to, sales promotion plans or
621programs, which results in such lesser actual price or results
622in a fixed price predetermined solely by the manufacturer or
623distributor. However, the provisions of this paragraph do not
624apply to sales to a tractor or farm equipment dealer for resale
625to any unit or agency of the United States Government, the state
626or any of its political subdivisions, or any municipality
627located within this state. Further, the provisions of this
628paragraph do not apply so long as a manufacturer, distributor,
629or wholesaler, or any agent thereof, sells or offers to sell
630such new tractor or farm equipment, parts, or accessories to all
631of its her or his franchised tractor or farm equipment dealers
632at an equal price.
633     (f)  To willfully discriminate, either directly or
634indirectly, in price, programs, or terms of sale offered to
635franchisees, when the effect of such discrimination may be to
636substantially lessen competition or to give to one holder of a
637franchise any economic, business, or competitive advantage not
638offered to all holders of the same or similar franchise.
639     (g)  To prevent or attempt to prevent, by contract or
640otherwise, any tractor or farm equipment dealer from changing
641the capital structure of her or his dealership or the means by
642or through which the dealer finances the operation of her or his
643dealership, provided the dealer at all times meets any
644reasonable capital standards agreed to between the dealership
645and the manufacturer, distributor, or wholesaler and provided
646such change by the dealer does not result in a change in the
647executive management of the dealership.
648     (h)  To prevent or attempt to prevent, by contract or
649otherwise, any tractor or farm equipment dealer or any officer,
650member partner, or stockholder of any tractor or farm equipment
651dealer from selling or transferring any part of the interest of
652any of them to any other person or persons or party or parties.
653However, no dealer, officer, partner, or stockholder has the
654right to sell, transfer, or assign the franchise or power of
655management or control thereunder without the written consent of
656the manufacturer, distributor, or wholesaler, except that such
657consent may not be unreasonably withheld.
658     (i)  To impose, directly or indirectly, unreasonable
659restrictions on the dealer relative to transfer, renewal,
660termination, location, or site control.
661     (j)  To prevent a dealer from having an investment in or
662holding a dealership contract for the sale of competing product
663lines or makes of equipment, or to require a dealer to provide
664separate facilities for competing product lines or makes of
665equipment.
666     (k)(i)  To obtain money, goods, services, anything of
667value, or any other benefit from any other person with whom the
668tractor or farm equipment dealer does business or employs on
669account of or in relation to the transactions between the
670dealer, the franchisor, and such other person.
671     (l)(j)  To require a tractor and farm equipment dealer to
672assent to a release, assignment, novation, waiver, or estoppel
673which would relieve any person from liability imposed by ss.
674686.40-686.418.
675     (4)  It is deemed a violation of this section for a tractor
676or farm equipment dealer:
677     (a)  To require a retail purchaser of a new tractor or item
678of farm equipment, as a condition of sale and delivery of the
679tractor or equipment, also to purchase special features,
680appliances, equipment, parts, or accessories not desired or
681requested by the purchaser. However, this prohibition does not
682apply to special features, appliances, equipment, parts, or
683accessories which are already installed when the tractor or item
684of farm equipment is received by the dealer from the
685manufacturer, distributor, or wholesaler of such tractor or
686equipment.
687     (b)  To represent and sell as new and unused any tractor or
688item of farm equipment which has been used and operated for
689demonstration or other purposes without stating to the purchaser
690prior to the sale the approximate amount of use the equipment
691tractor or item of farm machinery has experienced or undergone.
692     (c)  To resort to or use any false or misleading
693advertisement in connection with her or his business as such
694tractor or farm equipment dealer.
695     Section 10.  Section 686.418, Florida Statutes, is amended
696to read:
697     686.418  Effect of act on other remedies.--Sections 686.40-
698686.418 are supplemental to and do not preempt local ordinances
699dealing with prohibited or unlawful conduct in the
700manufacturing, distribution, wholesaling, advertising, or sale
701of tractors and other items of farm equipment if such ordinances
702are not inconsistent with such sections.
703     Section 11.  Subsection (5) of section 316.515, Florida
704Statutes, is amended to read:
705     316.515  Maximum width, height, length.--
706     (5)  IMPLEMENTS OF HUSBANDRY, AGRICULTURAL TRAILERS, SAFETY
707REQUIREMENTS.--Notwithstanding any other provisions of law,
708straight trucks, agricultural tractors, and cotton module
709movers, not exceeding 50 feet in length, or any combination of
710up to and including three implements of husbandry including the
711towing power unit, and any single agricultural trailer, with a
712load thereon or any agricultural implements attached to a towing
713power unit not exceeding 130 inches in width, or a self-
714propelled agricultural implement or an agricultural tractor not
715exceeding 130 inches in width, is authorized for the purpose of
716transporting peanuts, grains, soybeans, cotton, hay, straw, or
717other perishable farm products from their point of production to
718the first point of change of custody or of long-term storage,
719and for the purpose of returning to such point of production, or
720for the purpose of moving such tractors, movers, and implements
721from one point of agricultural production to another, by a
722person engaged in the production of any such product or custom
723hauler, if such vehicle or combination of vehicles otherwise
724complies with this section. Such vehicles shall be operated in
725accordance with all safety requirements prescribed by law and
726Department of Transportation rules. The Department of
727Transportation may issue overlength permits for cotton module
728movers greater than 50 feet but not more than 55 feet in overall
729length.
730     Section 12.  This act shall take effect July 1, 2004.
731
732


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