| 1 | A bill to be entitled |
| 2 | An act relating to motor vehicle manufacturers, importers, |
| 3 | distributors, and dealers; amending s. 320.696, F.S.; |
| 4 | revising requirement that certain motor vehicle |
| 5 | manufacturers and distributors compensate a dealer for |
| 6 | work performed to rectify product or warranty defects or |
| 7 | fulfill delivery and preparation obligations; revising |
| 8 | provisions for determination of compensation amount to |
| 9 | specify that work includes labor and parts; prohibiting |
| 10 | the manufacturer or distributor from imposing certain |
| 11 | charges on the dealer to recover costs of the |
| 12 | compensation; providing an effective date. |
| 13 |
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| 14 | Be It Enacted by the Legislature of the State of Florida: |
| 15 |
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| 16 | Section 1. Section 320.696, Florida Statutes, is amended |
| 17 | to read: |
| 18 | 320.696 Warranty responsibility.--The licensee shall |
| 19 | reasonably and timely compensate any authorized motor vehicle |
| 20 | dealer who performs work, including labor and parts, to rectify |
| 21 | the licensee's product or warranty defects or fulfills delivery |
| 22 | and preparation obligations. In the determination of what |
| 23 | constitutes reasonable compensation under this section, the |
| 24 | factors to be given consideration shall include, among others, |
| 25 | the compensation being paid by other licensees to their dealers, |
| 26 | the prevailing wage rate being paid by the dealers, and the |
| 27 | prevailing labor rate being charged by the dealers, in the city |
| 28 | or community in which the dealer is doing business. For the |
| 29 | purpose of this section, reasonable compensation for work, |
| 30 | including labor and parts, by a motor vehicle dealer for |
| 31 | warranty repairs or service, including labor and parts, on |
| 32 | behalf of a licensee shall not be determined to be less than the |
| 33 | amount charged by the dealer for like work to retail customers |
| 34 | for nonwarranty repairs and service, including labor and parts, |
| 35 | unless the licensee has demonstrated and established can |
| 36 | demonstrate and establish in a proceeding before the department |
| 37 | that the dealer's retail charges for labor and parts are |
| 38 | improper in light of all economic circumstances. Compensation |
| 39 | not paid within 30 days after of receipt or notice of billing |
| 40 | shall be presumed untimely. A licensee may not otherwise |
| 41 | recover, or seek to recover, any of its costs for compensating a |
| 42 | motor vehicle dealer for warranty work, including labor and |
| 43 | parts, by imposing on a motor vehicle dealer any charge or |
| 44 | surcharge to the wholesale price paid by a motor vehicle dealer |
| 45 | to the licensee for any product, including motor vehicles and |
| 46 | parts. |
| 47 | Section 2. This act shall take effect July 1, 2007. |