| 1 | A bill to be entitled |
| 2 | An act relating to motor vehicle dealership operations; |
| 3 | amending s. 320.60, F.S.; revising the definition of |
| 4 | "demonstrator" for purposes of provisions relating to |
| 5 | manufacturing, importing, and distributing motor vehicles; |
| 6 | amending s. 320.64, F.S.; prohibiting an applicant or |
| 7 | licensee from failing to pay certain compensation amounts |
| 8 | to a motor vehicle dealer after termination of the |
| 9 | franchise agreement; providing exceptions; providing for |
| 10 | certain remedies, procedures, and rights of recovery; |
| 11 | amending s. 320.642, F.S.; revising conditions under which |
| 12 | an opening or reopening of a motor vehicle dealership is |
| 13 | not subject to protest; restricting proposal for a dealer |
| 14 | of the same line-make for a certain period of time after |
| 15 | the opening of a relocated dealership; providing criteria |
| 16 | for measurements of distance between dealer locations; |
| 17 | amending s. 320.643, F.S.; exempting a transferee |
| 18 | proposing to relocate motor vehicle dealership operations |
| 19 | in conjunction with an asset or equity purchase from |
| 20 | franchise agreement location requirements; providing |
| 21 | conditions for the exemption; providing an effective date. |
| 22 |
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| 23 | Be It Enacted by the Legislature of the State of Florida: |
| 24 |
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| 25 | Section 1. Subsection (3) of section 320.60, Florida |
| 26 | Statutes, is amended to read: |
| 27 | 320.60 Definitions for ss. 320.61-320.70.--Whenever used |
| 28 | in ss. 320.61-320.70, unless the context otherwise requires, the |
| 29 | following words and terms have the following meanings: |
| 30 | (3) "Demonstrator" means any new motor vehicle which is |
| 31 | carried on the records of the dealer as a demonstrator and is |
| 32 | used by, being inspected or driven by the dealer or his or her |
| 33 | employees, or driven by prospective customers for the purpose of |
| 34 | demonstrating vehicle characteristics in the sale or display of |
| 35 | motor vehicles sold by the dealer. |
| 36 | Section 2. Subsection (35) of section 320.64, Florida |
| 37 | Statutes, is renumbered as subsection (36), and a new subsection |
| 38 | (35) is added to that section to read: |
| 39 | 320.64 Denial, suspension, or revocation of license; |
| 40 | grounds.--A license of a licensee under s. 320.61 may be denied, |
| 41 | suspended, or revoked within the entire state or at any specific |
| 42 | location or locations within the state at which the applicant or |
| 43 | licensee engages or proposes to engage in business, upon proof |
| 44 | that the section was violated with sufficient frequency to |
| 45 | establish a pattern of wrongdoing, and a licensee or applicant |
| 46 | shall be liable for claims and remedies provided in ss. 320.695 |
| 47 | and 320.697 for any violation of any of the following |
| 48 | provisions. A licensee is prohibited from committing the |
| 49 | following acts: |
| 50 | (35) Notwithstanding the terms of any franchise agreement, |
| 51 | after termination of a franchise, either voluntarily or |
| 52 | involuntarily, the applicant or licensee has failed to pay to |
| 53 | the motor vehicle dealer, within 90 days after the effective |
| 54 | date of the termination, cancellation, or nonrenewal, the |
| 55 | following amounts: |
| 56 | (a) The net cost paid by the dealer for each new motor |
| 57 | vehicle in the dealer's inventory with mileage of 2,000 miles or |
| 58 | less, exclusive of mileage placed on the vehicle before it was |
| 59 | delivered to the dealer. |
| 60 | (b) The cost paid by the dealer for each new, unused, |
| 61 | undamaged, and unsold part or accessory that: |
| 62 | 1. Is in the current parts catalogue and is still in the |
| 63 | original, resalable merchandising package and in an unbroken |
| 64 | lot, except that in the case of sheet metal a comparable |
| 65 | substitute for the original package may be used; and |
| 66 | 2. Was purchased by the dealer either directly from the |
| 67 | manufacturer or distributor or was purchased from an outgoing |
| 68 | authorized dealer as a part of the dealer's initial inventory. |
| 69 | (c) The fair market value of each undamaged sign owned by |
| 70 | the dealer that bears a trademark or trade name used or claimed |
| 71 | by the applicant or licensee, or a representative of the |
| 72 | applicant or licensee, and that was purchased from or at the |
| 73 | request of the applicant or licensee, or a representative of the |
| 74 | applicant or licensee. |
| 75 | (d) The fair market value of all special tools, data |
| 76 | processing equipment, and automotive service equipment owned by |
| 77 | the dealer that: |
| 78 | 1. Were recommended in writing by the applicant or |
| 79 | licensee or its representative and designated as special tools |
| 80 | and equipment; |
| 81 | 2. Were purchased from or at the request of the applicant |
| 82 | or licensee or its representative; and |
| 83 | 3. Are in usable and good condition except for reasonable |
| 84 | wear and tear. |
| 85 | (e) The cost of transporting, handling, packing, storing, |
| 86 | and loading any property subject to repurchase under this |
| 87 | subsection. |
| 88 |
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| 89 | This subsection shall not apply to terminations, cancellations, |
| 90 | and nonrenewals that are implemented as a result of the sale of |
| 91 | the assets or stock of the dealer. The dealer shall return the |
| 92 | property listed in this subsection to the licensee within 90 |
| 93 | days after the effective date of the termination, cancellation, |
| 94 | or nonrenewal. The licensee shall supply the new vehicle dealer |
| 95 | with reasonable instructions on the method by which the new |
| 96 | vehicle dealer must return the property to the licensee. The |
| 97 | compensation for the property shall be paid by the licensee |
| 98 | within 60 days after the tender of inventory and other items, |
| 99 | provided the new motor vehicle dealer has clear title to the |
| 100 | inventory and other items and is in a position to convey that |
| 101 | title to the manufacturer or distributor. In the event the |
| 102 | inventory or other items are subject to a security interest, the |
| 103 | licensee may make payment jointly to the new motor vehicle |
| 104 | dealer and the holder of the security interest. |
| 105 |
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| 106 | A motor vehicle dealer who can demonstrate that a violation of, |
| 107 | or failure to comply with, any of the preceding provisions by an |
| 108 | applicant or licensee will or can adversely and pecuniarily |
| 109 | affect the complaining dealer, shall be entitled to pursue all |
| 110 | of the remedies, procedures, and rights of recovery available |
| 111 | under ss. 320.695 and 320.697. |
| 112 | Section 3. Subsection (5) of section 320.642, Florida |
| 113 | Statutes, is amended, and subsection (7) is added to that |
| 114 | section, to read: |
| 115 | 320.642 Dealer licenses in areas previously served; |
| 116 | procedure.-- |
| 117 | (5)(a) The opening or reopening of the same or a successor |
| 118 | motor vehicle dealer within 12 months shall not be considered an |
| 119 | additional motor vehicle dealer subject to protest within the |
| 120 | meaning of this section, if: |
| 121 | 1.(a) The opening or reopening is within the same or an |
| 122 | adjacent county and, is within 2 miles of the former motor |
| 123 | vehicle dealer location;, |
| 124 | 2.(b) There is no motor vehicle dealer within 25 miles of |
| 125 | the proposed location or the proposed location is further from |
| 126 | each existing dealer of the same line-make than the prior |
| 127 | location is from each dealer of the same line-make within 25 |
| 128 | miles of the new location;, |
| 129 | 3.(c) The opening or reopening is within 6 miles of the |
| 130 | prior location and, if any existing motor vehicle dealer of the |
| 131 | same line-make is located within 15 miles of the former |
| 132 | location, the proposed location is no closer to any existing |
| 133 | dealer of the same line-make within 15 miles of the proposed |
| 134 | location;, or |
| 135 | 4.(d) The opening or reopening is within 6 miles of the |
| 136 | prior location and, if all existing motor vehicle dealers of the |
| 137 | same line-make are beyond 15 miles of the former location, the |
| 138 | proposed location is further than 15 miles from any existing |
| 139 | motor vehicle dealer of the same line-make. |
| 140 |
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| 141 | Any other such opening or reopening shall constitute an |
| 142 | additional motor vehicle dealer within the meaning of this |
| 143 | section. |
| 144 | (b) If an opening or reopening is accomplished pursuant to |
| 145 | the terms of this subsection and therefore not considered an |
| 146 | additional motor vehicle dealer subject to protest, the licensee |
| 147 | shall not propose a motor vehicle dealer of the same line-make |
| 148 | which is to be located within 4 miles of the previous location |
| 149 | for a period of 2 years after the date of the opening of the |
| 150 | relocated dealership. |
| 151 | (7) All measurements required by this section of the |
| 152 | distance between two or more existing motor vehicle dealer |
| 153 | locations, or between existing motor vehicle dealer locations |
| 154 | and a proposed motor vehicle dealer's location, shall be taken |
| 155 | from the geometric centroid of the property which encompasses |
| 156 | all of the existing or proposed motor vehicle dealer operations. |
| 157 | Section 4. Subsection (5) of section 320.643, Florida |
| 158 | Statutes, is renumbered as subsection (6), and a new subsection |
| 159 | (5) is added to that section to read: |
| 160 | 320.643 Transfer, assignment, or sale of franchise |
| 161 | agreements.-- |
| 162 | (5) A transferee proposing to simultaneously relocate |
| 163 | motor vehicle dealership operations in conjunction with an asset |
| 164 | purchase pursuant to subsection (1) or an equity purchase |
| 165 | pursuant to subsection (2) shall not be required to comply with |
| 166 | the location requirements of the franchise agreement then in |
| 167 | effect and such a proposal shall be subject to this section if: |
| 168 | (a) The proposed relocation is a relocation exempt from |
| 169 | protest and not considered as an additional motor vehicle dealer |
| 170 | pursuant to s. 320.642(5); |
| 171 | (b) The proposed dealership's facility satisfies facility |
| 172 | requirements in effect between the licensee and the dealer |
| 173 | proposing the transfer at the time the transfer is proposed; and |
| 174 | (c) The proposed facility is otherwise an appropriate |
| 175 | location, taking into account the accessibility and convenience |
| 176 | to consumers of the proposed location, the location of the other |
| 177 | dealers of the same line-make, and other factors related to the |
| 178 | appropriateness of the facility for its proposed use and whether |
| 179 | the proposed dealership facility and dealership operations are |
| 180 | separate from any other line-makes. |
| 181 | Section 5. This act shall take effect July 1, 2006. |