HB 1077

1	A bill to be entitled
2	An act relating to motor vehicle dealers; amending s.
3	320.27, F.S.; revising education requirements for
4	licensure to provide for a full-time, management-level
5	employee of the applicant or licensee; exempting certain
6	applicants for a new franchised motor vehicle dealer
7	license from certain training requirements; amending s.
8	320.60, F.S.; revising the definition of "demonstrator"
9	for purposes of provisions relating to manufacturing,
10	importing, and distributing motor vehicles; amending s.
11	320.64, F.S.; prohibiting specified licensees from failing
12	to pay certain compensation amounts to a motor vehicle
13	dealer after termination of the dealer's franchise
14	agreement; providing exceptions; providing procedures for
15	payment of the compensation amounts; providing for certain
16	remedies, procedures, and rights of recovery; amending s.
17	320.642, F.S.; deleting a requirement that certain notices
18	be sent by certified mail; revising conditions under which
19	an opening or reopening of the same or a successor dealer
20	within 12 months is not considered an additional dealer
21	subject to protest; prohibiting for a certain time
22	proposals for a dealer of the same line-make after the
23	opening or reopening of the dealer; providing criteria for
24	measurements of distance between dealer locations;
25	providing that the Department of Highway Safety and Motor
26	Vehicles is not obligated to determine the accuracy of any
27	distance submitted in a notice; providing for resolution
28	of disputed distances by a hearing in accordance with
29	specified provisions; providing an effective date.
30
31	Be It Enacted by the Legislature of the State of Florida:
32
33	Section 1.  Subsection (4) of section 320.27, Florida
34	Statutes, is amended to read:
35	320.27  Motor vehicle dealers.--
36	(4)  LICENSE CERTIFICATE.--
37	(a)  A license certificate shall be issued by the
38	department in accordance with such application when the
39	application is regular in form and in compliance with the
40	provisions of this section. The license certificate may be in
41	the form of a document or a computerized card as determined by
42	the department. The actual cost of each original, additional, or
43	replacement computerized card shall be borne by the licensee and
44	is in addition to the fee for licensure. Such license, when so
45	issued, entitles the licensee to carry on and conduct the
46	business of a motor vehicle dealer. Each license issued to a
47	franchise motor vehicle dealer expires annually on December 31
48	unless revoked or suspended prior to that date. Each license
49	issued to an independent or wholesale dealer or auction expires
50	annually on April 30 unless revoked or suspended prior to that
51	date. Not less than 60 days prior to the license expiration
52	date, the department shall deliver or mail to each licensee the
53	necessary renewal forms. Each independent dealer shall certify
54	that the dealer principal (owner, partner, officer of the
55	corporation, or director of the licensee, or a full-time
56	employee of the licensee who holds a responsible management-
57	level position) has completed 8 hours of continuing education
58	prior to filing the renewal forms with the department. Such
59	certification shall be filed once every 2 years commencing with
60	the 2006 renewal period. The continuing education shall include
61	at least 2 hours of legal or legislative issues, 1 hour of
62	department issues, and 5 hours of relevant motor vehicle
63	industry topics. Continuing education shall be provided by
64	dealer schools licensed under paragraph (b) either in a
65	classroom setting or by correspondence. Such schools shall
66	provide certificates of completion to the department and the
67	customer which shall be filed with the license renewal form, and
68	such schools may charge a fee for providing continuing
69	education. Any licensee who does not file his or her application
70	and fees and any other requisite documents, as required by law,
71	with the department at least 30 days prior to the license
72	expiration date shall cease to engage in business as a motor
73	vehicle dealer on the license expiration date. A renewal filed
74	with the department within 45 days after the expiration date
75	shall be accompanied by a delinquent fee of $100. Thereafter, a
76	new application is required, accompanied by the initial license
77	fee. A license certificate duly issued by the department may be
78	modified by endorsement to show a change in the name of the
79	licensee, provided, as shown by affidavit of the licensee, the
80	majority ownership interest of the licensee has not changed or
81	the name of the person appearing as franchisee on the sales and
82	service agreement has not changed. Modification of a license
83	certificate to show any name change as herein provided shall not
84	require initial licensure or reissuance of dealer tags; however,
85	any dealer obtaining a name change shall transact all business
86	in and be properly identified by that name. All documents
87	relative to licensure shall reflect the new name. In the case of
88	a franchise dealer, the name change shall be approved by the
89	manufacturer, distributor, or importer. A licensee applying for
90	a name change endorsement shall pay a fee of $25 which fee shall
91	apply to the change in the name of a main location and all
92	additional locations licensed under the provisions of subsection
93	(5). Each initial license application received by the department
94	shall be accompanied by verification that, within the preceding
95	6 months, the applicant, or one or more of his or her designated
96	employees, has attended a training and information seminar
97	conducted by a licensed motor vehicle dealer training school.
98	Any applicant for a new franchised motor vehicle dealer license
99	who has held a valid franchised motor vehicle dealer license
100	continuously for the past 2 years and who remains in good
101	standing with the department is exempt from the prelicensing
102	training requirement. Such seminar shall include, but is not
103	limited to, statutory dealer requirements, which requirements
104	include required bookkeeping and recordkeeping procedures,
105	requirements for the collection of sales and use taxes, and such
106	other information that in the opinion of the department will
107	promote good business practices. No seminar may exceed 8 hours
108	in length.
109	(b)  Each initial license application received by the
110	department for licensure under subparagraph (1)(c)2. must be
111	accompanied by verification that, within the preceding 6 months,
112	the applicant (owner, partner, officer of the corporation, or
113	director of the applicant, or a full-time employee of the
114	applicant who holds a responsible management-level position) has
115	successfully completed training conducted by a licensed motor
116	vehicle dealer training school. Such training must include
117	training in titling and registration of motor vehicles, laws
118	relating to unfair and deceptive trade practices, laws relating
119	to financing with regard to buy-here, pay-here operations, and
120	such other information that in the opinion of the department
121	will promote good business practices. Successful completion of
122	this training shall be determined by examination administered at
123	the end of the course and attendance of no less than 90 percent
124	of the total hours required by such school. Any applicant who
125	had held a valid motor vehicle dealer's license within the past
126	2 years and who remains in good standing with the department is
127	exempt from the requirements of this paragraph. In the case of
128	nonresident applicants, the requirement to attend such training
129	shall be placed on any employee of the licensee who holds a
130	responsible management-level position and who is employed full-
131	time at the motor vehicle dealership. The department shall have
132	the authority to adopt any rule necessary for establishing the
133	training curriculum; length of training, which shall not exceed
134	8 hours for required department topics and shall not exceed an
135	additional 24 hours for topics related to other regulatory
136	agencies' instructor qualifications; and any other requirements
137	under this section. The curriculum for other subjects shall be
138	approved by any and all other regulatory agencies having
139	jurisdiction over specific subject matters; however, the overall
140	administration of the licensing of these dealer schools and
141	their instructors shall remain with the department. Such schools
142	are authorized to charge a fee. This privatized method for
143	training applicants for dealer licensing pursuant to
144	subparagraph (1)(c)2. is a pilot program that shall be evaluated
145	by the department after it has been in operation for a period of
146	2 years.
147	Section 2.  Subsection (3) of section 320.60, Florida
148	Statutes, is amended to read:
149	320.60  Definitions for ss. 320.61-320.70.--Whenever used
150	in ss. 320.61-320.70, unless the context otherwise requires, the
151	following words and terms have the following meanings:
152	(3)  "Demonstrator" means any new motor vehicle that which
153	is carried on the records of the dealer as a demonstrator and is
154	used by, being inspected or driven by the dealer or his or her
155	employees, or driven by prospective customers for the purpose of
156	demonstrating vehicle characteristics in the sale or display of
157	motor vehicles sold by the dealer.
158	Section 3.  Subsection (36) is added to section 320.64,
159	Florida Statutes, to read:
160	320.64  Denial, suspension, or revocation of license;
161	grounds.--A license of a licensee under s. 320.61 may be denied,
162	suspended, or revoked within the entire state or at any specific
163	location or locations within the state at which the applicant or
164	licensee engages or proposes to engage in business, upon proof
165	that the section was violated with sufficient frequency to
166	establish a pattern of wrongdoing, and a licensee or applicant
167	shall be liable for claims and remedies provided in ss. 320.695
168	and 320.697 for any violation of any of the following
169	provisions. A licensee is prohibited from committing the
170	following acts:
171	(36)(a)  Notwithstanding the terms of any franchise
172	agreement, in addition to any other statutory or contractual
173	rights of recovery after the voluntary or involuntary
174	termination of a franchise, failing to pay the motor vehicle
175	dealer, within 90 days after the effective date of the
176	termination, cancellation, or nonrenewal, the following amounts:
177	1.  The net cost paid by the dealer for each new car or
178	truck in the dealer's inventory with mileage of 2,000 miles or
179	less, or a motorcycle with mileage of 100 miles or less,
180	exclusive of mileage placed on the vehicle before it was
181	delivered to the dealer.
182	2.  The current price charged for each new, unused,
183	undamaged, or unsold part or accessory that:
184	a.  Is in the current parts catalogue and is still in the
185	original, resalable merchandising package and in an unbroken
186	lot, except that sheet metal may be in a comparable substitute
187	for the original package; and
188	b.  Was purchased by the dealer directly from the
189	manufacturer or distributor or from an outgoing authorized
190	dealer as a part of the dealer's initial inventory.
191	3.  The fair market value of each undamaged sign owned by
192	the dealer which bears a trademark or trade name used or claimed
193	by the applicant or licensee or its representative which was
194	purchased from or at the request of the applicant or licensee or
195	its representative.
196	4.  The fair market value of all special tools, data
197	processing equipment, and automotive service equipment owned by
198	the dealer which:
199	a.  Were recommended in writing by the applicant or
200	licensee or its representative and designated as special tools
201	and equipment;
202	b.  Were purchased from or at the request of the applicant
203	or licensee or its representative; and
204	c.  Are in usable and good condition except for reasonable
205	wear and tear.
206	5.  The cost of transporting, handling, packing, storing,
207	and loading any property subject to repurchase under this
208	section.
209	(b)  This subsection does not apply to a termination,
210	cancellation, or nonrenewal that is implemented as a result of
211	the sale of the assets or stock of the dealer. The dealer shall
212	return the property listed in this subsection to the licensee
213	within 90 days after the effective date of the termination,
214	cancellation, or nonrenewal. The licensee shall supply the
215	dealer with reasonable instructions regarding the method by
216	which the dealer must return the property. The compensation for
217	the property shall be paid by the licensee within 60 days after
218	the tender of inventory and other items, if the dealer has clear
219	title to the inventory and other items and is in a position to
220	convey that title to the manufacturer or distributor. If the
221	inventory or other items are subject to a security interest, the
222	licensee may make payment jointly to the dealer and the holder
223	of the security interest.
224
225	A motor vehicle dealer who can demonstrate that a violation of,
226	or failure to comply with, any of the preceding provisions by an
227	applicant or licensee will or can adversely and pecuniarily
228	affect the complaining dealer, shall be entitled to pursue all
229	of the remedies, procedures, and rights of recovery available
230	under ss. 320.695 and 320.697.
231	Section 4.  Subsections (1) and (5) of section 320.642,
232	Florida Statutes, are amended, and subsections (7) and (8) are
233	added to that section, to read:
234	320.642  Dealer licenses in areas previously served;
235	procedure.--
236	(1)  Any licensee who proposes to establish an additional
237	motor vehicle dealership or permit the relocation of an existing
238	dealer to a location within a community or territory where the
239	same line-make vehicle is presently represented by a franchised
240	motor vehicle dealer or dealers shall give written notice of its
241	intention by certified mail to the department. Such notice shall
242	state:
243	(a)  The specific location at which the additional or
244	relocated motor vehicle dealership will be established.
245	(b)  The date on or after which the licensee intends to be
246	engaged in business with the additional or relocated motor
247	vehicle dealer at the proposed location.
248	(c)  The identity of all motor vehicle dealers who are
249	franchised to sell the same line-make vehicle with licensed
250	locations in the county or any contiguous county to the county
251	where the additional or relocated motor vehicle dealer is
252	proposed to be located.
253	(d)  The names and addresses of the dealer-operator and
254	principal investors in the proposed additional or relocated
255	motor vehicle dealership.
256
257	Immediately upon receipt of such notice the department shall
258	cause a notice to be published in the Florida Administrative
259	Weekly. The published notice shall state that a petition or
260	complaint by any dealer with standing to protest pursuant to
261	subsection (3) must be filed not more than 30 days from the date
262	of publication of the notice in the Florida Administrative
263	Weekly. The published notice shall describe and identify the
264	proposed dealership sought to be licensed, and the department
265	shall cause a copy of the notice to be mailed to those dealers
266	identified in the licensee's notice under paragraph (c).
267	(5)(a)  The opening or reopening of the same or a successor
268	motor vehicle dealer within 12 months is shall not be considered
269	an additional motor vehicle dealer subject to protest within the
270	meaning of this section, if:
271	1.(a)  The opening or reopening is within the same or an
272	adjacent county and, is within 2 miles of the former motor
273	vehicle dealer location;,
274	2.(b)  There is no dealer within 25 miles of the proposed
275	location or the proposed location is further from each existing
276	dealer of the same line-make than the prior location is from
277	each dealer of the same line-make within 25 miles of the new
278	location;,
279	3.(c)  The opening or reopening is within 6 miles of the
280	prior location and, if any existing motor vehicle dealer of the
281	same line-make is located within 15 miles of the former
282	location, the proposed location is no closer to any existing
283	dealer of the same line-make within 15 miles of the proposed
284	location;, or
285	4.(d)  The opening or reopening is within 6 miles of the
286	prior location and, if all existing motor vehicle dealers of the
287	same line-make are beyond 15 miles of the former location, the
288	proposed location is further than 15 miles from any existing
289	motor vehicle dealer of the same line-make.
290	(b)  Any other such opening or reopening shall constitute
291	an additional motor vehicle dealer within the meaning of this
292	section.
293	(c)  If a motor vehicle dealer has been opened or reopened
294	pursuant to this subsection, the licensee may not propose a
295	motor vehicle dealer of the same line-make to be located within
296	4 miles of the previous location of such dealer for 2 years
297	after the date the relocated dealership opens.
298	(7)  Measurements of the distance between proposed or
299	existing dealer locations required by this section shall be
300	taken from the geometric centroid of the property that
301	encompasses all of the existing or proposed motor vehicle dealer
302	operations.
303	(8)  The department shall not be obligated to determine the
304	accuracy of any distance asserted by any party in a notice
305	submitted to it. Any dispute concerning a distance measurement
306	asserted by a party shall be resolved by a hearing conducted in
307	accordance with ss. 120.569 and 120.57.
308	Section 5.  This act shall take effect July 1, 2006.

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