CS/HB 1457

1
A bill to be entitled
2An act relating to recreational vehicle manufacturers,
3distributors, and dealers; creating s. 320.3201, F.S.;
4providing legislative intent; creating s. 320.3202, F.S.;
5providing definitions; creating s. 320.3203, F.S.;
6providing requirements for a manufacturer/dealer
7agreement; requiring designation of the area of sales
8responsibility; providing conditions for sales outside the
9dealer's area of sales responsibility; creating s.
10320.3204, F.S.; providing requirements for sales by
11manufacturers and distributors; creating s. 320.3205,
12F.S.; providing requirements and procedures for
13termination, cancellation, or nonrenewal of a
14manufacturer/dealer agreement by a manufacturer or a
15dealer; providing for the repurchase by the manufacturer
16of vehicles, accessories, parts and equipment, tools,
17signage, and machinery; creating s. 320.3206, F.S.;
18providing for change in ownership by a dealer; requiring
19notice to the manufacturer; providing requirements for
20rejection by the manufacturer; providing for a dealer to
21name a family member as a successor in case of retirement,
22incapacitation, or death of the dealer; providing
23requirements for rejection of the successor by the
24manufacturer; creating s. 320.3207, F.S.; providing
25requirements for warrantors, manufacturers, and dealers
26with respect to warranty obligations; providing
27requirements for compensation of the dealer; authorizing
28warranty audits by the warrantor; requiring cause for
29denial of compensation; providing for disposition of
30warranty claims; prohibiting certain acts by the warrantor
31and the dealer; requiring notice of certain pending suits;
32creating s. 320.3208, F.S.; providing for inspection and
33rejection of a recreational vehicle upon delivery to a
34dealer; creating s. 320.3209, F.S.; prohibiting a
35manufacturer or distributor from coercing a dealer to
36perform certain acts; creating s. 320.3210, F.S.;
37providing for resolution when a dealer, manufacturer,
38distributor, or warrantor is injured by another party's
39violation; authorizing civil action; providing for
40mediation; providing for remedies; creating s. 320.3211,
41F.S.; providing administrative and criminal penalties for
42violations; providing for an administrative hearing to
43contest a penalty imposed by the department; amending s.
44320.8225, F.S.; providing licensure requirements for
45distributors and importers; providing for severability;
46providing an effective date.
47
48Be It Enacted by the Legislature of the State of Florida:
49
50     Section 1.  Section 320.3201, Florida Statutes, is created
51to read:
52     320.3201  Legislative intent.--
53     (1)  It is the intent of the Legislature to protect the
54public health, safety, and welfare of the residents of the state
55by regulating the relationship between recreational vehicle
56dealers and manufacturers, maintaining competition, and
57providing consumer protection and fair trade.
58     (2)  It is the intent of the Legislature that the
59provisions of this act be applied to manufacturer/dealer
60agreements entered into on or after October 1, 2007.
61     Section 2.  Section 320.3202, Florida Statutes, is created
62to read:
63     321.3202  Definitions.--As used in ss. 320.3201-320.3211,
64the term:
65     (1)  "Area of sales responsibility" means the geographical
66area agreed to by the dealer and the manufacturer in the
67manufacturer/dealer agreement within which the dealer has the
68exclusive right to display or sell the manufacturer's new
69recreational vehicles of a particular line-make.
70     (2)  "Dealer" means any person, firm, corporation, or
71business entity licensed or required to be licensed under s.
72320.771.
73     (3)  "Distributor" means any person, firm, corporation, or
74business entity that purchases new recreational vehicles for
75resale to dealers.
76     (4)  "Factory campaign" means an effort on the part of a
77warrantor to contact recreational vehicle owners or dealers in
78order to address a part or equipment issue.
79     (5)  "Family member" means a spouse, child, grandchild,
80parent, sibling, niece, or nephew, or the spouse thereof.
81     (6)  "Line-make" means a specific series of recreational
82vehicle products that:
83     (a)  Are identified by a common series trade name or
84trademark;
85     (b)  Are targeted to a particular market segment, as
86determined by their decor, features, equipment, size, weight,
87and price range;
88     (c)  Have lengths and interior floor plans that distinguish
89the recreational vehicles from other recreational vehicles with
90substantially the same decor, equipment, features, price, and
91weight; and
92     (d)  Belong to a single, distinct classification of
93recreational vehicle product type having a substantial degree of
94commonality in the construction of the chassis, frame, and body.
95     (7)  "Manufacturer" means any person, firm, corporation, or
96business entity that engages in the manufacturing of
97recreational vehicles.
98     (8)  "Manufacturer/dealer agreement" means a written
99agreement or contract entered into between a manufacturer and a
100dealer that fixes the rights and responsibilities of the parties
101and pursuant to which the dealer sells new recreational
102vehicles.
103     (9)  "Proprietary part" means any part manufactured by or
104for and sold exclusively by the manufacturer.
105     (10)  "Recreational vehicle" means the category of motor
106vehicle described s. 320.01(1)(b).
107     (11)  "Transient customer" means a customer who is
108temporarily traveling through a dealer's area of sales
109responsibility.
110     (12)  "Warrantor" means any person, firm, corporation, or
111business entity that gives a warranty in connection with a new
112recreational vehicle or parts, accessories, or components
113thereof. The term does not include service contracts, mechanical
114or other insurance, or extended warranties sold for separate
115consideration by a dealer or other person not controlled by a
116manufacturer.
117     Section 3.  Section 320.3203, Florida Statutes, is created
118to read:
119     320.3203  Requirement for a written manufacturer/dealer
120agreement; area of sales responsibility.--
121     (1)  A manufacturer or distributor may not sell a
122recreational vehicle in this state to or through a dealer
123without having first entered into a manufacturer/dealer
124agreement with a dealer which has been signed by both parties.
125     (2)  The manufacturer shall designate the area of sales
126responsibility exclusively assigned to a dealer in the
127manufacturer/dealer agreement and may not change such area or
128contract with another dealer for sale of the same line-make in
129the designated area during the duration of the agreement.
130     (3)  The area of sales responsibility may not be reviewed
131or changed until 1 year after the execution of the
132manufacturer/dealer agreement.
133     (4)  A motor vehicle dealer may not sell a new recreational
134vehicle in this state without having first entered into a
135manufacturer/dealer agreement with a manufacturer or distributor
136and may not sell outside of the area of sales responsibility
137designated in the agreement.
138     (5)  Notwithstanding subsection (4), a dealer may sell
139outside of its designated area of sales responsibility if the
140dealer obtains a supplemental license pursuant to s. 320.771(7)
141and meets any one of the following conditions:
142     (a)  For sales within another dealer's designated area of
143sales responsibility, the dealer must obtain in advance of the
144off-premise sale a written agreement signed by the dealer, the
145manufacturer of the recreational vehicles to be sold at the off-
146premise sale, and the dealer in whose designated area of sales
147responsibility the off-premise sale will occur which:
148     1.  Designates the recreational vehicles to be sold;
149     2.  Sets forth the time period for the off-premise sale;
150and
151     3.  Affirmatively authorizes the sale of the recreational
152vehicles.
153     (b)  The off-premise sale is not located within any
154dealer's designated area of sales responsibility and is in
155conjunction with a public vehicle show.
156     (c)  The off-premise sale is in conjunction with a public
157vehicle show in which more than 35 dealers are participating and
158the show is predominantly funded by manufacturers. For the
159purposes of this subsection, the term "public vehicle show"
160means an event sponsored by an organization approved under s.
161501(c)(6) of the Internal Revenue Code which has the purpose of
162promoting the welfare of the recreational vehicle industry and
163is located at a site that:
164     1.  Will be used to display and sell recreational vehicles;
165     2.  Is not used for off-premise sales for more than 10 days
166in a calendar year; and
167     3.  Is not the location set forth on any dealer's license
168as its place of business.
169     Section 4.  Section 320.3204, Florida Statutes, is created
170to read:
171     320.3204  Sales of recreational vehicles by manufacturer or
172distributor.--Sales of recreational vehicles by a manufacturer
173or distributor shall be in accordance with published prices,
174charges, and terms of sale in effect at any given time. The
175manufacturer shall offer to sell products on the same basis,
176with respect to all rebates, discounts, and programs, to all
177competing dealers similarly situated.
178     Section 5.  Section 320.3205, Florida Statutes, is created
179to read:
180     320.3205  Termination, cancellation, and nonrenewal of a
181manufacturer/dealer agreement.--
182     (1)  A manufacturer or distributor, directly or through any
183officer, agent, or employee, may not terminate, cancel, or fail
184to renew a manufacturer/dealer agreement without good cause,
185and, upon renewal, may not require additional inventory stocking
186requirements or increased retail sales targets in excess of the
187market growth in the dealer's area of sales responsibility.
188     (a)  The manufacturer or distributor has the burden of
189showing good cause for terminating, canceling, or failing to
190renew a manufacturer/dealer agreement with a dealer. For
191purposes of determining whether there is good cause for the
192proposed action, any of the following factors may be considered:
193     1.  The extent of the affected dealer's penetration in the
194relevant market area.
195     2.  The nature and extent of the dealer's investment in its
196business.
197     3.  The adequacy of the dealer's service facilities,
198equipment, parts, supplies, and personnel.
199     4.  The effect of the proposed action on the community.
200     5.  The extent and quality of the dealer's service under
201recreational vehicle warranties.
202     6.  The failure to follow agreed-upon procedures or
203standards related to the overall operation of the dealership.
204     7.  The dealer's performance under the terms of its
205manufacturer/dealer agreement.
206     (b)  Except as otherwise provided in this section, a
207manufacturer or distributor shall provide a dealer with at least
208120 days' prior written notice of termination, cancellation, or
209nonrenewal of the manufacturer/dealer agreement.
210     1.  The notice must state all reasons for the proposed
211termination, cancellation, or nonrenewal and must further state
212that if, within 30 days following receipt of the notice, the
213dealer provides to the manufacturer or distributor a written
214notice of intent to cure all claimed deficiencies, the dealer
215will then have 120 days following receipt of the notice to
216rectify the deficiencies. If the deficiencies are rectified
217within 120 days, the manufacturer's or distributor's notice is
218voided. If the dealer fails to provide the notice of intent to
219cure the deficiencies in the prescribed time period, the
220termination, cancellation, or nonrenewal takes effect 30 days
221after the dealer's receipt of the notice unless the dealer has
222new and untitled inventory on hand that may be disposed of
223pursuant to subsection (3).
224     2.  The notice period may be reduced to 30 days if the
225grounds for termination, cancellation, or nonrenewal are due to:
226     a.  A dealer or one of its owners being convicted of, or
227entering a plea of nolo contendere to, a felony;
228     b.  The abandonment or closing of the business operations
229of the dealer for 10 consecutive business days unless the
230closing is due to an act of God, strike, labor difficulty, or
231other cause over which the dealer has no control;
232     c.  A material misrepresentation by the dealer; or
233     d.  A suspension or revocation of the dealer's license, or
234refusal to renew the dealer's license, by the department.
235     3.  The notice provisions of this paragraph do not apply if
236the reason for termination, cancellation, or nonrenewal is
237insolvency, the occurrence of an assignment for the benefit of
238creditors, or bankruptcy.
239     (2)  A dealer may terminate, cancel, or not renew its
240manufacturer/dealer agreement with a manufacturer or distributor
241with or without cause at any time by giving 30 days' written
242notice to the manufacturer. If the termination, cancellation, or
243nonrenewal is for cause, the dealer has the burden of showing
244good cause. Any of the following items shall be deemed good
245cause for the proposed action by a dealer:
246     (a)  A manufacturer or one of its subsidiary companies
247being convicted of, or entering a plea of nolo contendere to, a
248felony.
249     (b)  The business operations of the manufacturer have been
250abandoned or closed for 10 consecutive business days, unless the
251closing is due to an act of God, strike, labor difficulty, or
252other cause over which the manufacturer has no control.
253     (c)  A significant misrepresentation by the manufacturer.
254     (d)  A material violation of ss. 320.3201-320.3211 which is
255not cured within 30 days after written notice by the dealer.
256     (e)  A declaration by the manufacturer of bankruptcy,
257insolvency, or the occurrence of an assignment for the benefit
258of creditors or bankruptcy.
259     (3)  If the manufacturer/dealer agreement is terminated,
260canceled, or not renewed by the manufacturer or distributor
261without cause or by the dealer for cause, the manufacturer
262shall, at the election of the dealer and within 30 days after
263termination, cancellation, or nonrenewal, repurchase:
264     (a)  All recreational vehicles that are classified as "new"
265for titling purposes under s. 319.001(8), that were acquired
266from the manufacturer or distributor, that have not been used,
267except for demonstration purposes, and that have not been
268altered or damaged, at 100 percent of the net invoice cost,
269including transportation, less applicable rebates and discounts
270to the dealer. If any of the vehicles repurchased are damaged,
271the amount due to the dealer shall be reduced by the cost to
272repair the vehicle. Damage prior to delivery to the dealer will
273not disqualify repurchase under this subsection;
274     (b)  All undamaged accessories and proprietary parts sold
275to the dealer for resale within the 12 months prior to
276termination, cancellation, or nonrenewal, if accompanied by the
277original invoice, at 105 percent of the original net price paid
278to the manufacturer or distributor to compensate the dealer for
279handling, packing, and shipping the parts; and
280     (c)  Any properly functioning diagnostic equipment, special
281tools, current signage, and other equipment and machinery at 100
282percent of the dealer's net cost plus freight, destination,
283delivery, and distribution charges and sales taxes, if any, if
284it was purchased by the dealer within 5 years before
285termination, cancellation, or nonrenewal and upon the
286manufacturer's or distributor's request and can no longer be
287used in the normal course of the dealer's ongoing business. The
288manufacturer or distributor shall pay the dealer within 30 days
289after receipt of the returned items.
290     Section 6.  Section 320.3206, Florida Statutes, is created
291to read:
292     320.3206  Transfer of ownership; family succession.--
293     (1)  If a dealer desires to make a change in ownership by
294the sale of the business assets, stock transfer, or otherwise,
295the dealer shall give the manufacturer or distributor 30 days'
296written notice before the closing, including all supporting
297documentation as may be reasonably required by the manufacturer
298or distributor. The manufacturer or distributor may not refuse
299consent to the proposed change or sale and may not disapprove or
300withhold approval of the change or sale unless the manufacturer
301or distributor can show that its decision is based on the
302manufacturer's reasonable criteria, which may include the
303prospective transferee's business experience, moral character,
304financial qualifications, and any criminal record.
305     (2)  If the manufacturer or distributor rejects a proposed
306change or sale, the manufacturer or distributor shall give
307written notice of its reasons to the dealer within 30 days after
308receipt of the dealer's notification and complete documentation.
309The manufacturer or distributor has the burden of showing that
310its rejection of the transfer or sale is reasonable. If the
311manufacturer or distributor does not give notice of rejection,
312the change or sale shall be deemed approved.
313     (3)  It is unlawful for a manufacturer or distributor to
314fail to provide a dealer an opportunity to designate, in
315writing, a family member as a successor to the dealership in the
316event of the death, incapacity, or retirement of the dealer. It
317is unlawful to prevent or refuse to honor the succession to a
318dealership by a family member of the deceased, incapacitated, or
319retired dealer unless the manufacturer or distributor has
320provided to the dealer written notice of its objections within
32130 days after receipt of the dealer's modification of the
322dealer's succession plan. Grounds for objection include lack of
323creditworthiness, conviction of a felony, lack of required
324licenses or business experience, or other condition that makes
325the succession unreasonable under the circumstances. The
326manufacturer or distributor has the burden of showing the
327unreasonableness of the succession. However, a family member may
328not succeed to a dealership if the succession involves, without
329the manufacturer's or distributor's consent, a relocation of the
330business or an alteration of the terms and conditions of the
331manufacturer/dealer agreement.
332     Section 7.  Section 320.3207, Florida Statutes, is created
333to read:
334     320.3207  Warranty obligations.--
335     (1)  Each warrantor shall:
336     (a)  Specify in writing to each of its dealer obligations,
337if any, for preparation, delivery, and warranty service on its
338products;
339     (b)  Compensate the dealer for warranty service required of
340the dealer by the warrantor; and
341     (c)  Provide the dealer the schedule of compensation to be
342paid and the time allowances for the performance of any work and
343service.
344
345The schedule of compensation must include reasonable
346compensation for diagnostic work as well as warranty labor.
347     (2)  Time allowances for the diagnosis and performance of
348warranty labor must be reasonable for the work to be performed.
349The warrantor shall authorize the dealer to undertake warranty
350repairs without prior approval if the repairs require less than
3513 hours of labor. The compensation of a dealer for warranty
352labor may not be less than the lowest retail labor rates
353actually charged by the dealer for like nonwarranty labor as
354long as such rates are reasonable.
355     (3)  The warrantor shall reimburse the dealer for warranty
356parts at actual wholesale cost plus a minimum 30-percent
357handling charge and the cost, if any, of freight to return
358warranty parts to the warrantor.
359     (4)  Warranty audits of dealer records may be conducted by
360the warrantor on a reasonable basis, and dealer claims for
361warranty compensation may not be denied except for cause, such
362as performance of nonwarranty repairs, material noncompliance
363with the warrantor's published policies and procedures, lack of
364material documentation, fraud, or misrepresentation.
365     (5)  The dealer shall submit warranty claims within 45 days
366after completing work.
367     (6)  The dealer shall notify the warrantor verbally or in
368writing if the dealer is unable to perform material or
369repetitive warranty repairs as soon as is reasonably possible.
370     (7)  The warrantor shall disapprove warranty claims in
371writing within 45 days after the date of submission by the
372dealer in the manner and form prescribed by the warrantor.
373Claims not specifically disapproved in writing within 45 days
374shall be construed to be approved and must be paid within 60
375days.
376     (8)  It is a violation of ss. 320.3201-320.3211 for any
377warrantor to:
378     (a)  Fail to perform any of its warranty obligations with
379respect to its warranted products;
380     (b)  Fail to include, in written notices of factory
381campaigns to recreational vehicle owners and dealers, the
382expected date by which necessary parts and equipment, including
383tires and chassis or chassis parts, will be available to dealers
384to perform the campaign work. The warrantor may ship parts to
385the dealer to effect the campaign work, and, if such parts are
386in excess of the dealer's requirements, the dealer may return
387unused parts to the warrantor for credit after completion of the
388campaign;
389     (c)  Fail to compensate any of its dealers for authorized
390repairs effected by the dealer of merchandise damaged in
391manufacture or transit to the dealer, if the carrier is
392designated by the warrantor, factory branch, distributor, or
393distributor branch;
394     (d)  Fail to compensate any of its dealers for authorized
395warranty service in accordance with the schedule of compensation
396provided to the dealer pursuant to this section if performed in
397a timely and competent manner;
398     (e)  Intentionally misrepresent in any way to purchasers of
399recreational vehicles that warranties with respect to the
400manufacture, performance, or design of the vehicle are made by
401the dealer as warrantor or cowarrantor; or
402     (f)  Require the dealer to make warranties to customers in
403any manner related to the manufacture of the recreational
404vehicle.
405     (9)  It is a violation of ss. 320.3201-320.3211 for any
406dealer to:
407     (a)  Fail to perform predelivery inspection functions, as
408specified by the warrantor, in a competent and timely manner;
409     (b)  Fail to perform warranty service work authorized by
410the warrantor in a reasonably competent and timely manner on any
411transient customer's vehicle of the same line-make; or
412     (c)  Misrepresent the terms of any warranty.
413     (10)  Notwithstanding the terms of any manufacturer/dealer
414agreement, it is a violation of ss. 320.3201-320.3211 for:
415     (a)  A warrantor to fail to indemnify and hold harmless its
416dealer against any losses or damages to the extent such losses
417or damages are caused by the negligence or willful misconduct of
418the warrantor. The dealer may not be denied indemnification for
419failing to discover, disclose, or remedy a defect in the design
420or manufacturing of the recreational vehicle. The dealer shall
421provide to the warrantor a copy of any suit in which allegations
422are made that come within this subsection within 10 days after
423receiving such suit.
424     (b)  A dealer to fail to indemnify and hold harmless its
425warrantor against any losses or damages to the extent such
426losses or damages are caused by the negligence or willful
427misconduct of the dealer. The warrantor shall provide to the
428dealer a copy of any suit in which allegations are made that
429come within this subsection within 10 days after receiving such
430suit.
431     Section 8.  Section 320.3208, Florida Statutes, is created
432to read:
433     320.3208  Inspection and rejection by the dealer.--
434     (1)  Whenever a new recreational vehicle is damaged prior
435to transit to the dealer or is damaged in transit to the dealer
436when the carrier or means of transportation has been selected by
437the manufacturer or distributor, the dealer shall notify the
438manufacturer or distributor of the damage within the timeframe
439specified in the manufacturer/dealer agreement and:
440     (a)  Request from the manufacturer or distributor
441authorization to replace the components, parts, and accessories
442damaged or otherwise correct the damage; or
443     (b)  Reject the vehicle within the timeframe set forth in
444subsection (3).
445
446If the manufacturer or distributor refuses or fails to authorize
447repair of such damage within 10 days after receipt of
448notification or if the dealer rejects the recreational vehicle
449because of damage, ownership of the new recreational vehicle
450reverts to the manufacturer or distributor.
451     (2)  The dealer shall exercise due care in custody of the
452damaged recreational vehicle, but the dealer shall have no other
453obligations, financial or otherwise, with respect to that
454recreational vehicle.
455     (3)  The timeframe for inspection and rejection by the
456dealer must be part of the manufacturer/dealer agreement and may
457not be less than 3 business days after the physical delivery of
458the recreational vehicle.
459     (4)  Any recreational vehicle that has, at the time of
460delivery to the dealer, an unreasonable amount of miles on its
461odometer, as determined by the dealer, may be subject to
462rejection by the dealer and reversion of the vehicle to the
463manufacturer or distributor.
464     Section 9.  Section 320.3209, Florida Statutes, is created
465to read:
466     320.3209  Coercion of dealer prohibited.--
467     (1)  A manufacturer or distributor may not coerce or
468attempt to coerce a dealer to:
469     (a)  Purchase a product that the dealer did not order;
470     (b)  Enter into an agreement with the manufacturer or
471distributor;
472     (c)  Take any action that is unfair or unreasonable to the
473dealer; or
474     (d)  Enter into an agreement that requires the dealer to
475submit its disputes to binding arbitration or otherwise waive
476rights or responsibilities provided under ss. 320.3201-320.3211.
477     (2)  As used in this section, the term "coerce" includes,
478but is not limited to, threatening to terminate, cancel, or not
479renew a manufacturer/dealer agreement without good cause or
480threatening to withhold product lines or delay product delivery
481as an inducement to amending the manufacturer/dealer agreement.
482     Section 10.  Section 320.3210, Florida Statutes, is created
483to read:
484     320.3210  Civil dispute resolution; mediation; relief.--
485     (1)  A dealer, manufacturer, distributor, or warrantor
486injured by another party's violation of ss. 320.3201-320.3211
487may bring a civil action in circuit court to recover actual
488damages. The court shall award attorney's fees and costs to the
489prevailing party in such action. Venue for any civil action
490authorized by this section must exclusively be in the county in
491which the dealership is located. In an action involving more
492than one dealer, venue may be in any county in which a dealer
493who is party to the action is located.
494     (2)  Before bringing suit under this section, the party
495bringing suit for an alleged violation shall serve a written
496demand for mediation upon the offending party.
497     (a)  The demand for mediation shall be served upon the
498offending party via certified mail at the address stated within
499the agreement between the parties. In the event of a civil
500action between two dealers, the demand must be mailed to the
501address on the dealer's license filed with the department.
502     (b)  The demand for mediation must contain a brief
503statement of the dispute and the relief sought by the party
504filing the demand.
505     (c)  Within 20 days after the date a demand for mediation
506is served, the parties shall mutually select an independent
507certified mediator and meet with the mediator for the purpose of
508attempting to resolve the dispute. The meeting place must be in
509this state in a location selected by the mediator. The mediator
510may extend the date of the meeting for good cause shown by
511either party or upon stipulation of both parties.
512     (d)  The service of a demand for mediation under this
513subsection stays the time for the filing of any complaint,
514petition, protest, or action under ss. 320.3201-320.3211 until
515representatives of both parties have met with a mutually
516selected mediator for the purpose of attempting to resolve the
517dispute. If a complaint, petition, protest, or action is filed
518before that meeting, the court shall enter an order suspending
519the proceeding or action until the meeting has occurred and may,
520upon written stipulation of all parties to the proceeding or
521action that they wish to continue to mediate under this
522subsection, enter an order suspending the proceeding or action
523for as long a period as the court considers appropriate. A
524suspension order issued under this paragraph may be revoked by
525the court.
526     (e)  The parties to the mediation shall bear their own
527costs for attorney's fees and divide equally the cost of the
528mediator.
529     (3)  In addition to the remedies provided in this section
530and notwithstanding the existence of any additional remedy at
531law, a dealer or manufacturer may apply to a circuit court for
532the grant, upon a hearing and for cause shown, of a temporary or
533permanent injunction, or both, restraining any person from
534acting as a dealer, manufacturer, distributor, or importer
535without being properly licensed pursuant to this chapter, from
536violating or continuing to violate any of the provisions of ss.
537320.3201-320.3211, or from failing or refusing to comply with
538the requirements of ss. 320.3201-320.3211. Such injunction shall
539be issued without bond. A single act in violation of the
540provisions of ss. 320.3201-320.3211 is sufficient to authorize
541the issuance of an injunction.
542     Section 11.  Section 320.3211, Florida Statutes, is created
543to read:
544     320.3211  Penalties.--
545     (1)  The department may suspend or revoke any license
546issued under s. 320.771 upon a finding that the dealer,
547manufacturer, or distributor violated any provision of ss.
548320.3201-320.3211. The department may impose, levy, and collect
549by legal process fines, in an amount not to exceed $1,000 for
550each violation, against any person if it finds that such person
551has violated any provision of ss. 320.3201-320.3211. Such person
552is entitled to an administrative hearing pursuant to chapter 120
553to contest the action or fine levied, or about to be levied,
554against the person.
555     (2)  In addition to the civil and administrative remedies,
556a person who violates any provision of ss. 320.3201-320.3211
557commits a misdemeanor of the second degree, punishable as
558provided in s. 775.082 or s. 775.083.
559     Section 12.  Section 320.8225, Florida Statutes, is amended
560to read:
561     320.8225  Mobile home and recreational vehicle
562manufacturer, distributor, and importer license manufacturer's
563license.--
564     (1)  LICENSE REQUIRED.--Any person who engages in the
565business of a mobile home manufacturer or a recreational vehicle
566manufacturer, distributor, or importer in this state, or who
567manufactures mobile homes or recreational vehicles out of state
568which are ultimately offered for sale in this state, shall
569obtain annually a license for each factory location in this
570state and for each factory location out of state which
571manufactures mobile homes or recreational vehicles for sale in
572this state, prior to distributing or importing mobile homes or
573recreational vehicles for sale in this state.
574     (2)  APPLICATION.--The application for a license must shall
575be in the form prescribed by the department and shall contain
576sufficient information to disclose the identity, location, and
577responsibility of the applicant. The application must shall also
578include a copy of the warranty and a complete statement of any
579service agreement or policy to be utilized by the applicant, any
580information relating to the applicant's solvency and financial
581standing, and any other pertinent matter commensurate with
582safeguarding the public.  The department may prescribe an
583abbreviated application for renewal of a license if the licensee
584has had previously filed an initial application pursuant to this
585section. The application for renewal must shall include any
586information necessary to make bring current the information
587required in the initial application.
588     (3)  FEES.--Upon submitting an making initial application,
589the applicant shall pay to the department a fee of $300. Upon
590submitting a making renewal application, the applicant shall pay
591to the department a fee of $100. Any applicant for renewal who
592fails has failed to submit his or her renewal application by
593October 1 shall pay a renewal application fee equal to the
594original application fee. No fee is refundable. All fees must
595shall be deposited into the General Revenue Fund.
596     (4)  NONRESIDENT.--Any person applying for a license who is
597not a resident of this state must designate shall have
598designated an agent for service of process pursuant to s.
59948.181.
600     (5)  REQUIREMENT OF ASSURANCE.--
601     (a)  Annually, prior to the receipt of a license to
602manufacture mobile homes, the applicant or licensee shall submit
603a surety bond, cash bond, or letter of credit from a financial
604institution, or a proper continuation certificate, sufficient to
605assure satisfaction of claims against the licensee for failure
606to comply with appropriate code standards, failure to provide
607warranty service, or violation of any provisions of this
608section. The amount of the surety bond, cash bond, or letter of
609credit must shall be $50,000. Only one surety bond, cash bond,
610or letter of credit shall be required for each manufacturer,
611regardless of the number of factory locations. The surety bond,
612cash bond, or letter of credit must shall be to the department,
613in favor of any retail customer who suffers a shall suffer loss
614arising out of noncompliance with code standards or failure to
615honor or provide warranty service. The department may shall have
616the right to disapprove any bond or letter of credit that does
617not provide assurance as provided in this section.
618     (b)  Annually, prior to the receipt of a license to
619manufacture, distribute, or import recreational vehicles, the
620applicant or licensee shall submit a surety bond, or a proper
621continuation certificate, sufficient to assure satisfaction of
622claims against the licensee for failure to comply with
623appropriate code standards, failure to provide warranty service,
624or violation of any provisions of this section. The amount of
625the surety bond must shall be $10,000 per year. The surety bond
626must shall be to the department, in favor of any retail customer
627who suffers shall suffer loss arising out of noncompliance with
628code standards or failure to honor or provide warranty service.
629The department may shall have the right to disapprove any bond
630that which does not provide assurance as provided in this
631section.
632     (c)  The department shall adopt rules pursuant to chapter
633120 relating to consistent with this section in providing
634assurance of satisfaction of claims under this section.
635     (d)  The department shall, upon denial, suspension, or
636revocation of any license, notify the surety company of the
637licensee, in writing, that the license has been denied,
638suspended, or revoked and shall state the reason for such
639denial, suspension, or revocation.
640     (e)  Any surety company that which pays any claim against
641the bond of any licensee shall notify the department, in
642writing, that it has paid such a claim and shall state the
643amount of the claim.
644     (f)  Any surety company that which cancels the bond of any
645licensee shall notify the department, in writing, of such
646cancellation, giving reason for the cancellation.
647     (6)  LICENSE YEAR.--A license issued to a mobile home
648manufacturer or a recreational vehicle manufacturer,
649distributor, or importer entitles the licensee to conduct the
650business of a mobile home or recreational vehicle manufacturer
651for a period of 1 year from October 1 preceding the date of
652issuance.
653     (7)  DENIAL OF LICENSE.--The department may deny a mobile
654home manufacturer or a recreational vehicle manufacturer,
655distributor, or importer manufacturer's license on the ground
656that:
657     (a)  The applicant has made a material misstatement in his
658or her application for a license.
659     (b)  The applicant has failed to comply with any applicable
660provision of this chapter.
661     (c)  The applicant has failed to provide warranty service.
662     (d)  The applicant or one or more of his or her principals
663or agents has violated any law, rule, or regulation relating to
664the manufacture or sale of mobile homes or recreational
665vehicles.
666     (e)  The department has proof of the unfitness of the
667applicant.
668     (f)  The applicant or licensee has engaged in previous
669conduct in any state which would have been a ground for
670revocation or suspension of a license in this state.
671     (g)  The applicant or licensee has violated any provision
672of the provisions of the National Mobile Home Construction and
673Safety Standards Act of 1974 or any related rule or regulation
674adopted by of the Department of Housing and Urban Development
675promulgated thereunder.
676
677Upon denial of a license, the department shall notify the
678applicant within 10 days, stating in writing its grounds for
679denial. The applicant is entitled to an administrative a public
680hearing and may request that such hearing be held within 45 days
681of denial of the license. All proceedings must shall be pursuant
682to chapter 120.
683     (8)  REVOCATION OR SUSPENSION OF LICENSE.--The department
684shall suspend or, in the case of a subsequent offense, shall
685revoke any license upon a finding that the licensee violated any
686provision of this chapter or any other law of this state
687regarding the manufacture, warranty, or sale of mobile homes or
688recreational vehicles. The department may reinstate the license
689if it When any license has been revoked or suspended by the
690department, it may be reinstated if the department finds that
691the former licensee has complied with all applicable
692requirements of this chapter and an application for a license is
693refiled pursuant to this section.
694     (9)  CIVIL PENALTIES; PROCEDURE.--In addition to the
695exercise of other powers provided in this section, The
696department is authorized to assess, impose, levy, and collect by
697legal process a civil penalty, in an amount not to exceed $1,000
698for each violation, against any licensee if it finds that a
699licensee has violated any provision of this section or has
700violated any other law of this state having to do with dealing
701in motor vehicles. A Any licensee is shall be entitled to a
702hearing pursuant to chapter 120 should the licensee wish to
703contest the fine levied, or about to be levied, upon him or her.
704     Section 13.  If any provision of this act or the
705application thereof to any person or circumstance is held
706invalid, the invalidity does not affect other provisions or
707applications of the act which can be given effect without the
708invalid provision or application and, to this end, the
709provisions of this act are severable.
710     Section 14.  This act shall take effect October 1, 2007.


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