HB 1019

CS

CHAMBER ACTION

1	The Civil Justice Committee recommends the following:
2
3	Council/Committee Substitute
4	Remove the entire bill and insert:
5	A bill to be entitled
6	An act relating to deceptive and unfair trade practices;
7	amending s. 501.975, F.S.; providing definitions for part
8	VI of ch. 501, F.S.; creating s. 501.9755, F.S.; declaring
9	that unfair methods of competition, unconscionable acts or
10	practices, and unfair or deceptive acts or practices used
11	by motor vehicle dealers are unlawful; providing
12	legislative intent; amending s. 501.976, F.S.; providing
13	an exception to the requirement that a contract be fully
14	complete before a customer signs a motor vehicle dealer's
15	contract; providing a required contractual notice;
16	deleting a provision regarding award of attorney's fees;
17	creating s. 501.9765, F.S.; providing definitions;
18	providing that a motor vehicle dealer who willfully uses a
19	method or practice that victimizes or attempts to
20	victimize senior citizens or handicapped persons commits
21	an unfair or deceptive trade practice; providing a civil
22	penalty; providing for reimbursement or restitution;
23	creating s. 501.977, F.S.; providing additional remedies
24	against a motor vehicle dealer; creating s. 501.978, F.S.;
25	providing that the remedies of part VI of ch. 501, F.S.,
26	are in addition to remedies otherwise available for the
27	same conduct under state or local law and do not preempt
28	local consumer-protection ordinances not in conflict with
29	part VI of ch. 501, F.S.; creating s. 501.979, F.S.;
30	providing for attorney's fees for a prevailing party;
31	providing procedures for receiving attorney's fees;
32	authorizing the Department of Legal Affairs or the office
33	of the state attorney to receive attorney's fees under
34	certain circumstances; creating s. 501.980, F.S.;
35	requiring that, as a condition precedent to initiating
36	civil litigation arising under part VI of ch. 501, F.S., a
37	claimant give the motor vehicle dealer written notice of
38	the claimant's intent to initiate litigation against the
39	motor vehicle dealer not less than 30 days before
40	initiating the litigation; providing for the content of
41	the notice of claim and the method by which the notice of
42	claim is given to the motor vehicle dealer; providing that
43	if the claim is paid by the motor vehicle dealer within 30
44	days after receiving the notice of claim, together with a
45	surcharge of 10 percent of the alleged actual damages, the
46	claimant may not initiate litigation against the motor
47	vehicle dealer, and the motor vehicle dealer is obligated
48	to pay only $500 for the attorney's fees of the claimant;
49	providing that the surcharge not exceed $500; providing
50	procedures for damage claims that are nonquantifiable;
51	providing expedited procedures when the claimant is
52	without access to a motor vehicle; providing that a
53	claimant is not entitled to a surcharge under certain
54	circumstances; providing that a motor vehicle dealer is
55	not obligated to pay the claimant's attorney's fees under
56	certain circumstances; providing that the presuit-
57	notification procedures apply to class actions; providing
58	that any applicable statute of limitations is tolled for
59	30 days for individual claims and 90 days for class action
60	claims; providing that the act does not affect the
61	statutory responsibilities of the Attorney General or the
62	office of the state attorney; requiring the Department of
63	Legal Affairs to prepare a specified sample demand letter
64	and make it available to the public; requiring a court to
65	abate litigation, without prejudice, until the claimant
66	has complied with the required procedures; amending s.
67	501.212, F.S.; exempting motor vehicle dealers from the
68	provisions of part II of ch. 501, F.S.; providing an
69	exception for the enforcing authority; providing an
70	effective date.
71
72	Be It Enacted by the Legislature of the State of Florida:
73
74	Section 1.  Section 501.975, Florida Statutes, is amended
75	to read:
76	501.975  Definitions.--As used in this part s. 501.976, the
77	term following terms shall have the following meanings:
78	(1)  "Customer" includes a customer's designated agent.
79	(2)  "Dealer" means a motor vehicle dealer as defined in s.
80	320.27, but does not include a motor vehicle auction as defined
81	in s. 320.27(1)(c)4.
82	(3)  "Replacement item" means a tire, bumper, bumper
83	fascia, glass, in-dashboard equipment, seat or upholstery cover
84	or trim, exterior illumination unit, grill, sunroof, external
85	mirror and external body cladding. The replacement of up to
86	three of these items does not constitute repair of damage if
87	each item is replaced because of a product defect or damage
88	damaged due to vandalism, lot damage, or an act of God while the
89	new motor vehicle is under the control of the dealer and the
90	items are replaced with original manufacturer equipment, unless
91	an item is replaced due to a crash, collision, or accident.
92	(4)  "Threshold amount" means 3 percent of the
93	manufacturer's suggested retail price of a motor vehicle or
94	$650, whichever is less.
95	(5)  "Vehicle" means any automobile, truck, bus,
96	recreational vehicle, or motorcycle required to be licensed
97	under chapter 320 for operation over the roads of Florida, but
98	does not include trailers, mobile homes, travel trailers, or
99	trailer coaches without independent motive power.
100	Section 2.  Section 501.9755, Florida Statutes, is created
101	to read:
102	501.9755  Unlawful acts and practices.--
103	(1)  Unfair methods of competition, unconscionable acts or
104	practices, and unfair or deceptive acts or practices in the
105	conduct of any trade or commerce by a dealer are unlawful.
106	(2)  It is the intent of the Legislature that, in
107	construing subsection (1), due consideration and great weight be
108	given to the interpretations of the Federal Trade Commission and
109	the federal courts relating to s. 5(a)(1) of the Federal Trade
110	Commission Act, 15 U.S.C. s. 45(a)(1).
111	Section 3.  Section 501.976, Florida Statutes, is amended
112	to read:
113	501.976  Actionable, unfair, or deceptive acts or
114	practices.--In addition to acts and practices actionable under
115	s. 501.9755, it is an unfair or deceptive act or practice,
116	actionable under the Florida Deceptive and Unfair Trade
117	Practices Act, for a dealer to:
118	(1)  Represent directly or indirectly that a motor vehicle
119	is a factory executive vehicle or executive vehicle unless the
120	such vehicle was purchased directly from the manufacturer or a
121	subsidiary of the manufacturer and the vehicle was used
122	exclusively by the manufacturer, its subsidiary, or a dealer for
123	the commercial or personal use of the manufacturer's,
124	subsidiary's, or dealer's employees.
125	(2)  Represent directly or indirectly that a vehicle is a
126	demonstrator unless the vehicle complies with the definition of
127	a demonstrator in s. 320.60(3).
128	(3)  Represent the previous usage or status of a vehicle to
129	be something that it was not, or make usage or status
130	representations unless the dealer has correct information
131	regarding the history of the vehicle to support the
132	representations.
133	(4)  Represent the quality of care, regularity of
134	servicing, or general condition of a vehicle unless known by the
135	dealer to be true and supportable by material fact.
136	(5)  Represent orally or in writing that a particular
137	vehicle has not sustained structural or substantial skin damage
138	unless the statement is made in good faith and the vehicle has
139	been inspected by the dealer or his or her agent to determine
140	whether the vehicle has incurred such damage.
141	(6)  Sell a vehicle without fully and conspicuously
142	disclosing in writing at or before the consummation of sale any
143	warranty or guarantee terms, obligations, or conditions that the
144	dealer or manufacturer has given to the buyer. If the warranty
145	obligations are to be shared by the dealer and the buyer, the
146	method of determining the percentage of repair costs to be
147	assumed by each party must be disclosed. If the dealer intends
148	to disclaim or limit any expressed or implied warranty, the
149	disclaimer must be in writing in a conspicuous manner and in lay
150	terms in accordance with chapter 672 and the Magnuson-Moss
151	Warranty--Federal Trade Commission Improvement Act.
152	(7)  Provide an express or implied warranty and fail to
153	honor such warranty unless properly disclaimed pursuant to
154	subsection (6).
155	(8)  Misrepresent warranty coverage, application period, or
156	any warranty transfer cost or conditions to a customer.
157	(9)  Obtain signatures from a customer on contracts that
158	are not fully completed as to all material terms at the time the
159	customer signs or which do not reflect accurately the
160	negotiations and agreement between the customer and the dealer.
161	However, this subsection does not apply if, at the time of the
162	transaction, the customer acknowledges in writing, separate from
163	any other text, having read substantially the following notice:
164	STATUTORY CONSUMER NOTICE: A vehicle purchase or lease
165	is a substantial transaction. Do not execute any sale
166	or lease document if it is not fully completed or does
167	not accurately reflect your agreement with the motor
168	vehicle dealer. If you suffer any damages as a result
169	of improper actions of the motor vehicle dealer,
170	relief may be available to you under the laws of this
171	state, including part VI of chapter 501, Florida
172	Statutes.
173	(10)  Require or accept a deposit from a prospective
174	customer prior to entering into a binding contract for the
175	purchase and sale of a vehicle unless the customer is given a
176	written receipt that states how long the dealer will hold the
177	vehicle from other sale and the amount of the deposit, and
178	clearly and conspicuously states whether and upon what
179	conditions the deposit is refundable or nonrefundable.
180	(11)  Add to the cash price of a vehicle as defined in s.
181	520.02(2) any fee or charge other than those provided in that
182	section and in rule 3D-50.001, Florida Administrative Code. All
183	fees or charges permitted to be added to the cash price by rule
184	3D-50.001, Florida Administrative Code, must be fully disclosed
185	to customers in all binding contracts concerning the vehicle's
186	selling price.
187	(12)  Alter or change the odometer mileage of a vehicle
188	except in compliance with 49 U.S.C. s. 32704.
189	(13)  Sell a vehicle without disclosing to the customer the
190	actual year and model of the vehicle.
191	(14)  File a lien against a new vehicle purchased with a
192	check unless the dealer fully discloses to the purchaser that a
193	lien will be filed if purchase is made by check and fully
194	discloses to the buyer the procedures and cost to the buyer for
195	gaining title to the vehicle after the lien is filed.
196	(15)  Increase the price of the vehicle after having
197	accepted an order of purchase or a contract from a buyer,
198	notwithstanding subsequent receipt of an official price change
199	notification. The price of a vehicle may be increased after a
200	dealer accepts an order of purchase or a contract from a buyer
201	if:
202	(a)  A trade-in vehicle is reappraised because it
203	subsequently is damaged, or parts or accessories are removed;
204	(b)  The price increase is caused by the addition of new
205	equipment, as required by state or federal law;
206	(c)  The price increase is caused by the revaluation of the
207	United States dollar by the Federal Government, in the case of a
208	foreign-made vehicle;
209	(d)  The price increase is caused by state or federal tax
210	rate changes; or
211	(e)  Price protection is not provided by the manufacturer,
212	importer, or distributor.
213	(16)  Advertise the price of a vehicle unless the vehicle
214	is identified by year, make, model, and a commonly accepted
215	trade, brand, or style name. The advertised price must include
216	all fees or charges that the customer must pay, including
217	freight or destination charge, dealer preparation charge, and
218	charges for undercoating or rustproofing. State and local taxes,
219	tags, registration fees, and title fees, unless otherwise
220	required by local law or standard, need not be disclosed in the
221	advertisement. When two or more dealers advertise jointly, with
222	or without participation of the franchisor, the advertised price
223	need not include fees and charges that are variable among the
224	individual dealers cooperating in the advertisement, but the
225	nature of all charges that are not included in the advertised
226	price must be disclosed in the advertisement.
227	(17)  Charge a customer for any predelivery service
228	required by the manufacturer, distributor, or importer for which
229	the dealer is reimbursed by the manufacturer, distributor, or
230	importer.
231	(18)  Charge a customer for any predelivery service without
232	having printed on all documents that include a line item for
233	predelivery service the following disclosure: "This charge
234	represents costs and profit to the dealer for items such as
235	inspecting, cleaning, and adjusting vehicles, and preparing
236	documents related to the sale."
237	(19)  Fail to disclose damage to a new motor vehicle, as
238	defined in s. 319.001(8), of which the dealer had actual
239	knowledge, if the dealer's actual cost of repairs exceeds the
240	threshold amount, excluding replacement items.
241
242	In any civil litigation resulting from a violation of this
243	section, when evaluating the reasonableness of an award of
244	attorney's fees to a private person, the trial court shall
245	consider the amount of actual damages in relation to the time
246	spent.
247	Section 4.  Section 501.9765, Florida Statutes, is created
248	to read:
249	501.9765  Violations involving a senior citizen or
250	handicapped person; civil penalties; presumption.--
251	(1)  As used in this section, the term:
252	(a)  "Senior citizen" means a person who is 60 years of age
253	or older.
254	(b)  "Handicapped person" means any person who has a mental
255	or educational impairment that substantially limits one or more
256	major life activities.
257	(c)  "Mental or educational impairment" means:
258	1.  Any mental or psychological disorder or specific
259	learning disability.
260	2.  Any educational deficiency that substantially affects a
261	person's ability to read and comprehend the terms of any
262	contractual agreement entered into.
263	(d)  "Major life activities" means functions associated
264	with the normal activities of independent daily living such as
265	caring for oneself, performing manual tasks, walking, seeing,
266	hearing, speaking, breathing, learning, and working.
267	(2)  Any person who willfully uses, or has willfully used,
268	a method, act, or practice in violation of this part, which
269	method, act, or practice victimizes or attempts to victimize a
270	senior citizen or handicapped person, and commits such violation
271	when he or she knew or should have known that his or her conduct
272	was unfair or deceptive, is liable for a civil penalty of not
273	more than $15,000 for each such violation.
274	(3)  Any order of restitution or reimbursement based on a
275	violation of this part committed against a senior citizen or
276	handicapped person has priority over the imposition of civil
277	penalties for violations of this section.
278	(4)  Civil penalties collected under this section shall be
279	deposited into the Legal Affairs Revolving Trust Fund of the
280	Department of Legal Affairs and allocated to the Department of
281	Legal Affairs solely for the purpose of preparing and
282	distributing consumer-education materials, programs, and
283	seminars to benefit senior citizens and handicapped persons or
284	to enhance efforts to enforce this section.
285	Section 5.  Section 501.977, Florida Statutes, is created
286	to read:
287	501.977  Other individual remedies.--
288	(1)  Without regard to any other remedy or relief to which
289	a person is entitled, anyone aggrieved by a violation of this
290	part by a dealer may bring an action against the dealer in order
291	to obtain a declaratory judgment that an act or practice
292	violates this part and to enjoin a dealer who has violated, is
293	violating, or is otherwise likely to violate, this part.
294	(2)  In any action brought by a person who has suffered a
295	loss as a result of a violation of this part, the person may
296	recover actual damages, plus attorney's fees and court costs as
297	provided in s. 501.979. However, damages, fees, or costs are not
298	recoverable under this section against a dealer who has, in good
299	faith, engaged in the dissemination of claims of a manufacturer,
300	distributor, importer, or wholesaler without actual knowledge
301	that doing so violates this part.
302	(3)  In any action brought under this section, if, after
303	the filing of a motion by the dealer, the court finds that the
304	action is frivolous, without legal or factual merit, or brought
305	for the purpose of harassment, the court may, after hearing
306	evidence as to the necessity therefor, require the party
307	instituting the action to post a bond in the amount that the
308	court finds reasonable to indemnify the defendant for any costs
309	incurred, or to be incurred, including reasonable attorney's
310	fees in defending the claim. This subsection does not apply to
311	any action initiated by the enforcing authority.
312	Section 6.  Section 501.978, Florida Statutes, is created
313	to read:
314	501.978  Effect on other remedies.--
315	(1)  The remedies of this part are in addition to remedies
316	otherwise available for the same conduct under state or local
317	law.
318	(2)  This part is supplemental to, and does not preempt,
319	local consumer-protection ordinances not inconsistent with this
320	part.
321	Section 7.  Section 501.979, Florida Statutes, is created
322	to read:
323	501.979  Attorney's fees.--
324	(1)  In any civil litigation resulting from an act or
325	practice involving a violation of this part, except as provided
326	in subsection (5) and s. 501.980, the prevailing party, after
327	judgment in the trial court and exhaustion of all appeals, if
328	any, shall receive his or her reasonable attorney's fees and
329	costs from the nonprevailing party. When evaluating the
330	reasonableness of an award of attorney's fees to a private
331	person, the trial court shall consider the actual damages in
332	relation to the time spent.
333	(2)  The attorney for the prevailing party shall submit a
334	sworn affidavit of his or her time spent on the case and his or
335	her costs incurred for all the motions, hearings, and appeals to
336	the trial judge who presided over the civil case.
337	(3)  The trial judge may award the prevailing party the sum
338	of reasonable costs incurred in the action, plus reasonable
339	attorney's fees for the hours actually spent on the case as
340	sworn to in an affidavit.
341	(4)  Any award of attorney's fees or costs becomes a part
342	of the judgment and is subject to execution as the law allows.
343	(5)  In any civil litigation initiated by the enforcing
344	authority, the court may award to the prevailing party
345	reasonable attorney's fees and costs if the court finds that
346	there was a complete absence of a justiciable issue of law or
347	fact raised by the losing party or if the court finds bad faith
348	on the part of the losing party.
349	(6)  In any administrative proceeding or other nonjudicial
350	action initiated by an enforcing authority, the attorney for the
351	enforcing authority may certify by sworn affidavit the number of
352	hours and the cost thereof to the enforcing authority for the
353	time spent in the investigation and litigation of the case, plus
354	costs reasonably incurred in the action. Payment to the
355	enforcing authority of the sum of the costs may, by stipulation
356	of the parties, be made a part of the final order or decree
357	disposing of the matter. The affidavit shall be attached to and
358	become a part of the order or decree.
359	Section 8.  Section 501.980, Florida Statutes, is created
360	to read:
361	501.980  Demand letter.--
362	(1)  As a condition precedent to initiating any civil
363	litigation arising under this part, a claimant must give the
364	dealer written notice of the claimant's intent to initiate
365	litigation against the dealer not less than 30 days before
366	initiating the litigation.
367	(2)  The notice, which must be completed in good faith,
368	must:
369	(a)  State that it is a demand letter under s. 501.980;
370	(b)  State the name, address, and telephone number of the
371	claimant;
372	(c)  State the name and address of the dealer;
373	(d)  Provide the date and a description of the transaction,
374	event, or circumstance that is the basis of the claim;
375	(e)  Describe with specificity the underlying facts and how
376	they give rise to an alleged violation of this part;
377	(f)  To the extent applicable, be accompanied by all
378	transaction or other documents upon which the claim is based or
379	upon which the claimant is relying to assert the claim;
380	(g)  Include a statement describing and providing the
381	amount of each item of actual damages demanded by the claimant
382	and recoverable under this part. However, to the extent the
383	claimant cannot in good faith quantify any item of actual damage
384	as required, the claimant shall provide a comprehensive
385	description of the item of damage or a formula or basis by which
386	the dealer may calculate the damage; and
387	(h)  Include a description of reasonable attorney's fees
388	incurred, if any, for which reimbursement, not to exceed $500,
389	is sought.
390	(3)(a)  The notice of the claim must be delivered to the
391	dealer by certified mail, return receipt requested. The postal
392	costs shall be reimbursed to the claimant by the dealer if the
393	dealer pays the claim and if the claimant requests reimbursement
394	of the postal costs in the notice of claim.
395	(b)  If the dealer is a corporate entity, the notice of
396	claim must be sent to the registered agent of the dealer as
397	recorded with the Department of State and, in the absence of a
398	registered agent, any person listed in s. 48.081(1).
399	(4)  Notwithstanding any provision of this part to the
400	contrary, a claimant may not initiate litigation against a
401	dealer for a claim arising under this part related to, or in
402	connection with, the transaction or event described in the
403	notice of claim if the dealer pays the claimant within 30 days
404	after receiving the notice of claim:
405	(a)  The amount requested in the demand letter as specified
406	in paragraph (2)(g);
407	(b)  A surcharge of 10 percent of the amount requested in
408	the demand letter, not to exceed $500; and
409	(c)  The attorney's fees of the claimant as specified in
410	paragraph (2)(h), not to exceed $500.
411	(5)(a)  Subsection (4) does not apply if the notice of
412	claim specifies nonquantified items of damage. However, the
413	dealer may notify the claimant in writing within 30 days after
414	receiving the notice of claim that the dealer proposes to pay
415	the claim with modifications. The dealer must inform the
416	claimant that he or she has placed a value on the nonquantified
417	items of damage and intends to pay that amount in addition to
418	the payments described in paragraphs (4)(a) and (b).
419	(b)  The claimant must accept or reject, in writing, the
420	offer of the dealer within 10 business days after receiving the
421	offer.
422	(c)  Upon receipt of the notice of acceptance, the dealer
423	must pay the claimant the amount set forth in the proposal
424	within 10 business days after receiving the notice of
425	acceptance.
426	(d)  A claimant may not initiate litigation against the
427	dealer for a claim under this part that is related to, or in
428	connection with, the transaction or event described in the
429	notice of claim unless:
430	1.  The dealer ignores, rejects, or fails to timely respond
431	to the claimant's demand, or fails to pay within 10 business
432	days the amount accepted by claimant; or
433	2.  The claimant does not accept the proposal of the
434	dealer.
435	(6)  If the notice of claim includes damages that arise
436	from the claimant's not having access to a motor vehicle due to
437	the alleged conduct of the dealer, the time set forth in
438	subsections (4) and (5) for the dealer to respond are reduced
439	from 30 days to 10 business days.
440	(7)  For the purpose of this section, payment by a dealer
441	is deemed paid on the date a draft or other valid instrument
442	that is equivalent to payment is placed in the United States
443	mail, or other nationally recognized carrier, in a properly
444	addressed, postpaid envelope, or, if not so posted, on the date
445	of delivery.
446	(8)  The claimant is not entitled to a surcharge in any
447	proceeding initiated against a dealer under this part if the
448	dealer rejects or ignores the notice of claim or the claimant
449	rejects or ignores the dealer's proposal described in subsection
450	(5).
451	(9)  Notwithstanding any provision of this part to the
452	contrary, a dealer is not required to pay the attorney's fees of
453	the claimant in any civil action brought under this part if:
454	(a)  The dealer, within 30 days after receiving the
455	claimant's notice of claim, notifies the claimant in writing,
456	and a court or arbitrator agrees, that the amount claimed is not
457	supported by the facts of the transaction or event described in
458	the notice of claim or by generally accepted accounting
459	principles, or includes items not properly recoverable under
460	this part, but nevertheless offers to pay to the claimant the
461	actual damages that are supported by the facts of the
462	transaction or event described in the notice of claim and
463	properly recoverable under this part, and the surcharge and
464	attorney's fees, if any, described in subsection (4);
465	(b)  The claimant's basis for rejecting or ignoring the
466	dealer's proposal described in subsection (5) is not supported
467	by the facts described in the notice of claim, generally
468	accepted accounting principles, or the law; or
469	(c)  The claimant fails to substantially comply with this
470	section.
471	(10)  This section shall apply to class action claims,
472	subject to the following conditions:
473	(a)  In addition to describing the claimant's individual
474	claim as required by subsection (2), the class action notice of
475	claim to the dealer must also include:
476	1.  The definition of the class of claimants for whom
477	relief is sought;
478	2.  A description of the alleged violations of this part
479	that have allegedly damaged the class; and
480	3.  A statement describing and providing the amount of each
481	item of actual damages demanded by the claimant on behalf of the
482	class under this part or, if the claimant cannot in good faith
483	quantify an item of actual damages, a comprehensive description
484	of the item of damages and a formula or basis by which the
485	dealer may calculate the damages.
486	(b)  The surcharge set forth in subsection (4) shall not
487	apply.
488	(c)  All time periods described in other subsections of
489	this section shall be 45 days in length for class actions unless
490	further extended by a written agreement of the parties.
491	(d)  If the dealer agrees to pay the damages demanded in
492	the class action notice of claim, the dealer must notify the
493	claimant of the decision in writing within 90 days after
494	receiving the class action notice of claim. Within 90 days after
495	receiving the dealer's notice of agreement, the claimant, on
496	behalf of the class, must file a civil action to enforce the
497	agreement, the purpose of which is to conduct proceedings to
498	determine the fairness of the agreement to the class, to
499	administer the agreed resolution of the class action, to provide
500	for notification and opt-out procedures applicable in a class
501	action, to ensure compliance with the rules of civil procedure,
502	and to award reasonable attorney's fees to the claimant's
503	counsel for actual time spent in connection with the proceeding.
504	If the claimant fails to timely file the civil action within 90
505	days or if the court determines that the agreement is not fair
506	to the class, the class action notice and the dealer's response
507	are void.
508	(e)  A dealer is not be obligated to pay attorney's fees
509	for the claimant in a class action proceeding if the dealer,
510	within 45 days after receiving the class action notification,
511	informs the claimant in writing, and a court or arbitrator in a
512	subsequent action agrees, that:
513	1.  The claimant is seeking to recover damages for the
514	class that are not properly recoverable under this part or is
515	seeking to recover damages that are not supported by the facts
516	of the transaction or event described in the class action notice
517	of claim or by generally accepted accounting principles, but
518	still offers to pay the class all damages properly recoverable
519	and listed in the notice of claim; or
520	2.  The claim or class is not a valid class claim or the
521	class is not properly certified as a class, but the dealer still
522	offers to pay all actual damages properly recoverable by the
523	claimant under this part as an individual that are supported by
524	the facts of the transaction or event described in the class
525	action notice of claim, in addition to the payments described in
526	paragraphs (4)(b) and (c).
527	(11)  Payment of the actual damages or an offer to pay
528	actual damages as set forth in this section:
529	(a)  Does not constitute an admission of any wrongdoing by
530	the dealer;
531	(b)  Is protected by s. 90.408;
532	(c)  Serves to release the dealer from any suit, action, or
533	other action that could be brought under this part arising out
534	of or in connection with the transaction, event, or occurrence
535	described in the notice of claim;
536	(d)  Serves as a defense in any action brought by the same
537	claimant to the extent of the damages, inclusive of any
538	surcharge, paid by the dealer; and
539	(e)  Serves as a defense in any subsequent action brought
540	by any member of the class who did not opt out in connection
541	with the same set of operative facts as described in the class
542	action notice of claim if the action was settled on a classwide
543	basis.
544	(12)  The applicable statute of limitations period for an
545	action under this part is tolled for 30 days for individual
546	claims and 45 days for class action claims, or such other period
547	of time as agreed to by the parties in writing, by the mailing
548	of the notice required by this section.
549	(13)  This section does not apply to actions brought by the
550	enforcing authority. Notwithstanding the foregoing, the
551	Department of Legal Affairs shall prepare a sample demand letter
552	to incorporate the information required by subsection (2) for
553	individual notice of claims and shall make it available to the
554	public.
555	(14)  If a claimant initiates civil litigation under this
556	part without first complying with the requirements of this
557	section, the court, upon a motion of a dealer, shall abate the
558	litigation, without prejudice, until the claimant has complied
559	with the provisions of this part.
560	Section 9.  Subsection (8) is added to section 501.212,
561	Florida Statutes, to read:
562	501.212  Application.--This part does not apply to:
563	(8)  A claim brought by a person other than the enforcing
564	authority against a dealer as defined in s. 501.975(2).
565	Section 10.  This act shall take effect upon becoming a
566	law.

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