Senate Bill sb1206

    Florida Senate - 2007                                  SB 1206

    By Senator Atwater





    21-1494-07

  1                      A bill to be entitled

  2         An act relating to warranty responsibility for

  3         motor vehicle dealers; amending s. 320.696,

  4         F.S.; providing that reasonable compensation

  5         for work, including labor and parts, is the

  6         same under warranty as under other

  7         circumstances unless the motor vehicle

  8         manufacturer, distributor, or importer

  9         demonstrates that the charges are proper;

10         prohibiting a motor vehicle manufacturer,

11         distributor, or importer from imposing a charge

12         on a motor vehicle dealer for warranty work and

13         certain products; providing an effective date.

14  

15  Be It Enacted by the Legislature of the State of Florida:

16  

17         Section 1.  Section 320.696, Florida Statutes, is

18  amended to read:

19         320.696  Warranty responsibility.--The licensee shall

20  reasonably and timely compensate any authorized motor vehicle

21  dealer who performs work, including labor and parts, to

22  rectify the licensee's product or warranty defects or fulfills

23  delivery and preparation obligations.  In the determination of

24  what constitutes reasonable compensation under this section,

25  the factors to be given consideration shall include, among

26  others, the compensation being paid by other licensees to

27  their dealers, the prevailing wage rate being paid by the

28  dealers, and the prevailing labor rate being charged by the

29  dealers, in the city or community in which the dealer is doing

30  business. For the purpose of this section, reasonable

31  compensation for work, including labor and parts, by a motor

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






    Florida Senate - 2007                                  SB 1206
    21-1494-07




 1  vehicle dealer for warranty repairs or service, including

 2  labor and parts, on behalf of a licensee shall not be

 3  determined to be less than the amount charged by the dealer

 4  for like work to retail customers for nonwarranty repairs and

 5  service, including labor and parts, unless the licensee has

 6  demonstrated can demonstrate and established establish in a

 7  proceeding before the department that the dealer's retail

 8  charges for labor and parts are improper in light of all

 9  economic circumstances. Compensation not paid within 30 days

10  after of receipt or notice of billing is shall be presumed

11  untimely. A licensee may not otherwise recover, or seek to

12  recover, any of its costs for compensating a motor vehicle

13  dealer for warranty work, including labor and parts, by

14  imposing on a motor vehicle dealer any charge or surcharge to

15  the wholesale price paid by a motor vehicle dealer to the

16  licensee for any product, including motor vehicles and parts.

17         Section 2.  This act shall take effect July 1, 2007.

18  

19            *****************************************

20                          SENATE SUMMARY

21    Provides that reasonable compensation for work, including
      labor and parts, is the same under warranty as under
22    other circumstances unless the motor vehicle
      manufacturer, distributor, or importer demonstrates that
23    the charges are proper. Provides that a motor vehicle
      manufacturer, distributor, or importer may not impose a
24    charge on a motor vehicle dealer for certain products.

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