Florida Senate - 2006                      COMMITTEE AMENDMENT
    Bill No. SB 2682
                        Barcode 264826
                            CHAMBER ACTION
              Senate                               House
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       04/03/2006 04:44 PM         .                    
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11  The Committee on Transportation (Bennett) recommended the
12  following amendment:
13  
14         Senate Amendment (with title amendment) 
15         Delete everything after the enacting clause
16  
17  and insert:  
18         Section 1.  Paragraph (a) of subsection (4) of section
19  320.27, Florida Statutes, is amended to read:
20         320.27  Motor vehicle dealers.--
21         (4)  LICENSE CERTIFICATE.--
22         (a)  A license certificate shall be issued by the
23  department in accordance with such application when the
24  application is regular in form and in compliance with the
25  provisions of this section. The license certificate may be in
26  the form of a document or a computerized card as determined by
27  the department. The actual cost of each original, additional,
28  or replacement computerized card shall be borne by the
29  licensee and is in addition to the fee for licensure. Such
30  license, when so issued, entitles the licensee to carry on and
31  conduct the business of a motor vehicle dealer. Each license
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    2:26 PM   03/31/06                             s2682d-tr21-j02

Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. SB 2682 Barcode 264826 1 issued to a franchise motor vehicle dealer expires annually on 2 December 31 unless revoked or suspended prior to that date. 3 Each license issued to an independent or wholesale dealer or 4 auction expires annually on April 30 unless revoked or 5 suspended prior to that date. Not less than 60 days prior to 6 the license expiration date, the department shall deliver or 7 mail to each licensee the necessary renewal forms. Each 8 independent dealer shall certify that the dealer principal 9 (owner, partner, officer of the corporation, or director) has 10 completed 8 hours of continuing education prior to filing the 11 renewal forms with the department. Such certification shall be 12 filed once every 2 years commencing with the 2006 renewal 13 period. The continuing education shall include at least 2 14 hours of legal or legislative issues, 1 hour of department 15 issues, and 5 hours of relevant motor vehicle industry topics. 16 Continuing education shall be provided by dealer schools 17 licensed under paragraph (b) either in a classroom setting or 18 by correspondence. Such schools shall provide certificates of 19 completion to the department and the customer which shall be 20 filed with the license renewal form, and such schools may 21 charge a fee for providing continuing education. Any licensee 22 who does not file his or her application and fees and any 23 other requisite documents, as required by law, with the 24 department at least 30 days prior to the license expiration 25 date shall cease to engage in business as a motor vehicle 26 dealer on the license expiration date. A renewal filed with 27 the department within 45 days after the expiration date shall 28 be accompanied by a delinquent fee of $100. Thereafter, a new 29 application is required, accompanied by the initial license 30 fee. A license certificate duly issued by the department may 31 be modified by endorsement to show a change in the name of the 2 2:26 PM 03/31/06 s2682d-tr21-j02
Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. SB 2682 Barcode 264826 1 licensee, provided, as shown by affidavit of the licensee, the 2 majority ownership interest of the licensee has not changed or 3 the name of the person appearing as franchisee on the sales 4 and service agreement has not changed. Modification of a 5 license certificate to show any name change as herein provided 6 shall not require initial licensure or reissuance of dealer 7 tags; however, any dealer obtaining a name change shall 8 transact all business in and be properly identified by that 9 name. All documents relative to licensure shall reflect the 10 new name. In the case of a franchise dealer, the name change 11 shall be approved by the manufacturer, distributor, or 12 importer. A licensee applying for a name change endorsement 13 shall pay a fee of $25 which fee shall apply to the change in 14 the name of a main location and all additional locations 15 licensed under the provisions of subsection (5). Each initial 16 license application received by the department shall be 17 accompanied by verification that, within the preceding 6 18 months, the applicant, or one or more of his or her designated 19 employees, has attended a training and information seminar 20 conducted by a licensed motor vehicle dealer training school. 21 Any applicant for a new franchised motor vehicle dealer 22 license who has held a valid franchised motor vehicle dealer 23 license continuously for the past 2 years and who remains in 24 good standing with the department is exempt from the 25 prelicensing training requirement. Such seminar shall include, 26 but is not limited to, statutory dealer requirements, which 27 requirements include required bookkeeping and recordkeeping 28 procedures, requirements for the collection of sales and use 29 taxes, and such other information that in the opinion of the 30 department will promote good business practices. No seminar 31 may exceed 8 hours in length. 3 2:26 PM 03/31/06 s2682d-tr21-j02
Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. SB 2682 Barcode 264826 1 Section 2. Subsection (3) of section 320.60, Florida 2 Statutes, is amended to read: 3 320.60 Definitions for ss. 320.61-320.70.--Whenever 4 used in ss. 320.61-320.70, unless the context otherwise 5 requires, the following words and terms have the following 6 meanings: 7 (3) "Demonstrator" means any new motor vehicle that 8 which is carried on the records of the dealer as a 9 demonstrator and is used by, being inspected or driven by the 10 dealer or his or her employees, or driven by prospective 11 customers for the purpose of demonstrating vehicle 12 characteristics in the sale or display of motor vehicles sold 13 by the dealer. 14 Section 3. Subsection (36) is added to section 320.64, 15 Florida Statutes, to read: 16 320.64 Denial, suspension, or revocation of license; 17 grounds.--A license of a licensee under s. 320.61 may be 18 denied, suspended, or revoked within the entire state or at 19 any specific location or locations within the state at which 20 the applicant or licensee engages or proposes to engage in 21 business, upon proof that the section was violated with 22 sufficient frequency to establish a pattern of wrongdoing, and 23 a licensee or applicant shall be liable for claims and 24 remedies provided in ss. 320.695 and 320.697 for any violation 25 of any of the following provisions. A licensee is prohibited 26 from committing the following acts: 27 (36)(a) Notwithstanding the terms of any franchise 28 agreement, in addition to any other statutory or contractual 29 rights of recovery after the voluntary or involuntary 30 termination of a franchise, failing to pay the motor vehicle 31 dealer, within 90 days after the effective date of the 4 2:26 PM 03/31/06 s2682d-tr21-j02
Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. SB 2682 Barcode 264826 1 termination, cancellation, or nonrenewal, the following 2 amounts: 3 1. The net cost paid by the dealer for each new motor 4 vehicle in the dealer's inventory with mileage of 2,000 miles 5 or less, exclusive of mileage placed on the vehicle before it 6 was delivered to the dealer. 7 2. The current price charged for each new, unused, 8 undamaged, or unsold part or accessory that: 9 a. Is in the current parts catalogue and is still in 10 the original, resalable merchandising package and in an 11 unbroken lot, except that sheet metal may be in a comparable 12 substitute for the original package; and 13 b. Was purchased by the dealer directly from the 14 manufacturer or distributor or from an outgoing authorized 15 dealer as a part of the dealer's initial inventory. 16 3. The fair market value of each undamaged sign owned 17 by the dealer which bears a trademark or trade name used or 18 claimed by the applicant or licensee or its representative 19 which was purchased from or at the request of the applicant or 20 licensee or its representative. 21 4. The fair market value of all special tools, data 22 processing equipment, and automotive service equipment owned 23 by the dealer which: 24 a. Were recommended in writing by the applicant or 25 licensee or its representative and designated as special tools 26 and equipment; 27 b. Were purchased from or at the request of the 28 applicant or licensee or its representative; and 29 c. Are in usable and good condition except for 30 reasonable wear and tear. 31 5. The cost of transporting, handling, packing, 5 2:26 PM 03/31/06 s2682d-tr21-j02
Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. SB 2682 Barcode 264826 1 storing, and loading any property subject to repurchase under 2 this section. 3 (b) This subsection does not apply to a termination, 4 cancellation, or nonrenewal that is implemented as a result of 5 the sale of the assets or stock of the dealer. The dealer 6 shall return the property listed in this subsection to the 7 licensee within 90 days after the effective date of the 8 termination, cancellation, or nonrenewal. The licensee shall 9 supply the dealer with reasonable instructions regarding the 10 method by which the dealer must return the property. The 11 compensation for the property shall be paid by the licensee 12 within 60 days after the tender of inventory and other items, 13 if the dealer has clear title to the inventory and other items 14 and is in a position to convey that title to the manufacturer 15 or distributor. If the inventory or other items are subject to 16 a security interest, the licensee may make payment jointly to 17 the dealer and the holder of the security interest. 18 19 A motor vehicle dealer who can demonstrate that a violation 20 of, or failure to comply with, any of the preceding provisions 21 by an applicant or licensee will or can adversely and 22 pecuniarily affect the complaining dealer, shall be entitled 23 to pursue all of the remedies, procedures, and rights of 24 recovery available under ss. 320.695 and 320.697. 25 Section 4. Subsections (1) and (5) of section 320.642, 26 Florida Statutes, are amended, and subsections (7) and (8) are 27 added to that section, to read: 28 320.642 Dealer licenses in areas previously served; 29 procedure.-- 30 (1) Any licensee who proposes to establish an 31 additional motor vehicle dealership or permit the relocation 6 2:26 PM 03/31/06 s2682d-tr21-j02
Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. SB 2682 Barcode 264826 1 of an existing dealer to a location within a community or 2 territory where the same line-make vehicle is presently 3 represented by a franchised motor vehicle dealer or dealers 4 shall give written notice of its intention by certified mail 5 to the department. Such notice shall state: 6 (a) The specific location at which the additional or 7 relocated motor vehicle dealership will be established. 8 (b) The date on or after which the licensee intends to 9 be engaged in business with the additional or relocated motor 10 vehicle dealer at the proposed location. 11 (c) The identity of all motor vehicle dealers who are 12 franchised to sell the same line-make vehicle with licensed 13 locations in the county or any contiguous county to the county 14 where the additional or relocated motor vehicle dealer is 15 proposed to be located. 16 (d) The names and addresses of the dealer-operator and 17 principal investors in the proposed additional or relocated 18 motor vehicle dealership. 19 20 Immediately upon receipt of such notice the department shall 21 cause a notice to be published in the Florida Administrative 22 Weekly. The published notice shall state that a petition or 23 complaint by any dealer with standing to protest pursuant to 24 subsection (3) must be filed not more than 30 days from the 25 date of publication of the notice in the Florida 26 Administrative Weekly. The published notice shall describe and 27 identify the proposed dealership sought to be licensed, and 28 the department shall cause a copy of the notice to be mailed 29 to those dealers identified in the licensee's notice under 30 paragraph (c). 31 (5)(a) The opening or reopening of the same or a 7 2:26 PM 03/31/06 s2682d-tr21-j02
Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. SB 2682 Barcode 264826 1 successor motor vehicle dealer within 12 months is shall not 2 be considered an additional motor vehicle dealer subject to 3 protest within the meaning of this section, if: 4 1.(a) The opening or reopening is within the same or 5 an adjacent county and, is within 2 miles of the former motor 6 vehicle dealer location;, 7 2.(b) There is no dealer within 25 miles of the 8 proposed location or the proposed location is further from 9 each existing dealer of the same line-make than the prior 10 location is from each dealer of the same line-make within 25 11 miles of the new location;, 12 3.(c) The opening or reopening is within 6 miles of 13 the prior location and, if any existing motor vehicle dealer 14 of the same line-make is located within 15 miles of the former 15 location, the proposed location is no closer to any existing 16 dealer of the same line-make within 15 miles of the proposed 17 location;, or 18 4.(d) The opening or reopening is within 6 miles of 19 the prior location and, if all existing motor vehicle dealers 20 of the same line-make are beyond 15 miles of the former 21 location, the proposed location is further than 15 miles from 22 any existing motor vehicle dealer of the same line-make. 23 (b) Any other such opening or reopening shall 24 constitute an additional motor vehicle dealer within the 25 meaning of this section. 26 (c) If a motor vehicle dealer has been opened or 27 reopened pursuant to this subsection, the licensee may not 28 propose a motor vehicle dealer of the same line-make to be 29 located within 4 miles of the previous location of such dealer 30 for 2 years after the date the relocated dealership opens. 31 (7) Measurements of the distance between proposed or 8 2:26 PM 03/31/06 s2682d-tr21-j02
Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. SB 2682 Barcode 264826 1 existing dealer locations required by this section shall be 2 taken from the geometric centroid of the property that 3 encompasses all of the existing or proposed motor vehicle 4 dealer operations. 5 (8) The department shall not be obligated to determine 6 the accuracy of any distance asserted by any party in a notice 7 submitted to it. Any dispute concerning a distance measurement 8 asserted by a party shall be resolved by a hearing conducted 9 in accordance with ss. 120.569 and 120.57. 10 Section 5. This act shall take effect July 1, 2006. 11 12 13 ================ T I T L E A M E N D M E N T =============== 14 And the title is amended as follows: 15 Delete everything before the enacting clause 16 17 and insert: 18 A bill to be entitled 19 An act relating to motor vehicle dealers; 20 amending s. 320.27, F.S.; exempting certain 21 applicants for a new franchised motor vehicle 22 dealer license from certain training 23 requirements; amending s. 320.60, F.S.; 24 revising the definition of "demonstrator" for 25 purposes of provisions relating to 26 manufacturing, importing, and distributing 27 motor vehicles; amending s. 320.64, F.S.; 28 prohibiting specified licensees from failing to 29 pay certain compensation amounts to a motor 30 vehicle dealer after termination of the 31 dealer's franchise agreement; providing 9 2:26 PM 03/31/06 s2682d-tr21-j02
Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. SB 2682 Barcode 264826 1 exceptions; providing procedures for payment of 2 the compensation amounts; providing for certain 3 remedies, procedures, and rights of recovery; 4 amending s. 320.642, F.S.; deleting a 5 requirement that certain notices be sent by 6 certified mail; revising conditions under which 7 an opening or reopening of the same or a 8 successor dealer within 12 months is not 9 considered an additional dealer subject to 10 protest; prohibiting for a certain time 11 proposals for a dealer of the same line-make 12 after the opening or reopening of the dealer; 13 providing criteria for measurements of distance 14 between dealer locations; providing that the 15 Department of Highway Safety and Motor Vehicles 16 is not obligated to determine the accuracy of 17 any distance submitted in a notice; providing 18 for resolution of disputed distances by a 19 hearing in accordance with specified 20 provisions; providing an effective date. 21 22 23 24 25 26 27 28 29 30 31 10 2:26 PM 03/31/06 s2682d-tr21-j02