| 1 | A bill to be entitled |
| 2 | An act relating to recreational vehicle manufacturers, |
| 3 | distributors, dealers, and importers; creating s. |
| 4 | 320.3201, F.S.; providing legislative intent; creating s. |
| 5 | 320.3202, F.S.; providing definitions; creating s. |
| 6 | 320.3203, F.S.; providing requirements for a |
| 7 | manufacturer/dealer agreement; requiring designation of |
| 8 | the area of sales responsibility; providing conditions for |
| 9 | sales outside the dealer's area of sales responsibility; |
| 10 | creating s. 320.3205, F.S.; providing requirements and |
| 11 | procedures for termination, cancellation, or nonrenewal of |
| 12 | a manufacturer/dealer agreement by a manufacturer or a |
| 13 | dealer; providing for the repurchase by the manufacturer |
| 14 | of vehicles, accessories, parts and equipment, tools, |
| 15 | signage, and machinery; requiring notification of a |
| 16 | manufacturer when a dealer takes on an additional line- |
| 17 | make; creating s. 320.3206, F.S.; providing for change in |
| 18 | ownership by a dealer; requiring notice to the |
| 19 | manufacturer; providing requirements for objection by the |
| 20 | manufacturer; providing for a dealer to name a family |
| 21 | member as a successor in case of retirement, |
| 22 | incapacitation, or death of the dealer; providing |
| 23 | requirements for objection to the successor by the |
| 24 | manufacturer; creating s. 320.3207, F.S.; providing |
| 25 | requirements for warrantors, manufacturers, and dealers |
| 26 | with respect to warranty obligations; providing |
| 27 | requirements for compensation of the dealer; authorizing |
| 28 | warranty audits by the warrantor; requiring cause for |
| 29 | denial of compensation; providing for disposition of |
| 30 | warranty claims; prohibiting certain acts by the warrantor |
| 31 | and the dealer; requiring notice of certain pending suits; |
| 32 | creating s. 320.3208, F.S.; providing for inspection and |
| 33 | rejection of a recreational vehicle upon delivery to a |
| 34 | dealer; creating s. 320.3209, F.S.; prohibiting a |
| 35 | manufacturer or distributor from coercing a dealer to |
| 36 | perform certain acts; creating s. 320.3210, F.S.; |
| 37 | providing for resolution when a dealer, manufacturer, |
| 38 | distributor, or warrantor is injured by another party's |
| 39 | violation; authorizing civil action; providing for |
| 40 | mediation; providing for remedies; creating s. 320.3211, |
| 41 | F.S.; providing administrative and criminal penalties for |
| 42 | violations; providing for an administrative hearing to |
| 43 | contest a penalty imposed by the department; amending s. |
| 44 | 320.8225, F.S.; providing licensure requirements for |
| 45 | distributors and importers; providing for severability; |
| 46 | providing an effective date. |
| 47 |
|
| 48 | Be It Enacted by the Legislature of the State of Florida: |
| 49 |
|
| 50 | Section 1. Section 320.3201, Florida Statutes, is created |
| 51 | to read: |
| 52 | 320.3201 Legislative intent.-- |
| 53 | (1) It is the intent of the Legislature to protect the |
| 54 | public health, safety, and welfare of the residents of the state |
| 55 | by regulating the relationship between recreational vehicle |
| 56 | dealers and manufacturers, maintaining competition, and |
| 57 | providing consumer protection and fair trade. |
| 58 | (2) It is the intent of the Legislature that the |
| 59 | provisions of ss. 320.3201-320.3211 be applied to |
| 60 | manufacturer/dealer agreements entered into on or after October |
| 61 | 1, 2007. |
| 62 | Section 2. Section 320.3202, Florida Statutes, is created |
| 63 | to read: |
| 64 | 320.3202 Definitions.--As used in ss. 320.3201-320.3211, |
| 65 | the term: |
| 66 | (1) "Area of sales responsibility" means the geographical |
| 67 | area agreed to by the dealer and the manufacturer in the |
| 68 | manufacturer/dealer agreement within which the dealer has the |
| 69 | exclusive right to display or sell the manufacturer's new |
| 70 | recreational vehicles of a particular line-make. |
| 71 | (2) "Dealer" means any person, firm, corporation, or |
| 72 | business entity licensed or required to be licensed under s. |
| 73 | 320.771. |
| 74 | (3) "Distributor" means any person, firm, corporation, or |
| 75 | business entity that purchases new recreational vehicles for |
| 76 | resale to dealers. |
| 77 | (4) "Factory campaign" means an effort on the part of a |
| 78 | warrantor to contact recreational vehicle owners or dealers in |
| 79 | order to address a part or equipment issue. |
| 80 | (5) "Family member" means a spouse, child, grandchild, |
| 81 | parent, sibling, niece, or nephew, or the spouse thereof. |
| 82 | (6) "Line-make" means a specific series of recreational |
| 83 | vehicle products that: |
| 84 | (a) Are identified by a common series trade name or |
| 85 | trademark; |
| 86 | (b) Are targeted to a particular market segment, as |
| 87 | determined by their decor, features, equipment, size, weight, |
| 88 | and price range; |
| 89 | (c) Have lengths and interior floor plans that distinguish |
| 90 | the recreational vehicles from other recreational vehicles with |
| 91 | substantially the same decor, equipment, features, price, and |
| 92 | weight; |
| 93 | (d) Belong to a single, distinct classification of |
| 94 | recreational vehicle product type having a substantial degree of |
| 95 | commonality in the construction of the chassis, frame, and body; |
| 96 | and |
| 97 | (e) The manufacturer/dealer agreement authorizes a dealer |
| 98 | to sell. |
| 99 | (7) "Manufacturer" means any person, firm, corporation, or |
| 100 | business entity that engages in the manufacturing of |
| 101 | recreational vehicles. |
| 102 | (8) "Manufacturer/dealer agreement" means a written |
| 103 | agreement or contract entered into between a manufacturer and a |
| 104 | dealer that fixes the rights and responsibilities of the parties |
| 105 | and pursuant to which the dealer sells new recreational |
| 106 | vehicles. |
| 107 | (9) "Proprietary part" means any part manufactured by or |
| 108 | for and sold exclusively by the manufacturer. |
| 109 | (10) "Recreational vehicle" means the category of motor |
| 110 | vehicle described in s. 320.01(1)(b). |
| 111 | (11) "Transient customer" means a customer who is |
| 112 | temporarily traveling through a dealer's area of sales |
| 113 | responsibility. |
| 114 | (12) "Warrantor" means any person, firm, corporation, or |
| 115 | business entity that gives a warranty in connection with a new |
| 116 | recreational vehicle or parts, accessories, or components |
| 117 | thereof. The term does not include service contracts, mechanical |
| 118 | or other insurance, or extended warranties sold for separate |
| 119 | consideration by a dealer or other person not controlled by a |
| 120 | manufacturer. |
| 121 | Section 3. Section 320.3203, Florida Statutes, is created |
| 122 | to read: |
| 123 | 320.3203 Requirement for a written manufacturer/dealer |
| 124 | agreement; area of sales responsibility.-- |
| 125 | (1) A manufacturer or distributor may not sell a |
| 126 | recreational vehicle in this state to or through a dealer |
| 127 | without having first entered into a manufacturer/dealer |
| 128 | agreement with a dealer which has been signed by both parties. |
| 129 | (2) The manufacturer shall designate the area of sales |
| 130 | responsibility exclusively assigned to a dealer in the |
| 131 | manufacturer/dealer agreement and may not change such area or |
| 132 | contract with another dealer for sale of the same line-make in |
| 133 | the designated area during the duration of the agreement. |
| 134 | (3) The area of sales responsibility may not be reviewed |
| 135 | or changed until 1 year after the execution of the |
| 136 | manufacturer/dealer agreement. |
| 137 | (4) A motor vehicle dealer may not sell a new recreational |
| 138 | vehicle in this state without having first entered into a |
| 139 | manufacturer/dealer agreement with a manufacturer or distributor |
| 140 | and may not sell outside of the area of sales responsibility |
| 141 | designated in the agreement. |
| 142 | (5) Notwithstanding subsection (4), a dealer may sell |
| 143 | outside of its designated area of sales responsibility if the |
| 144 | dealer obtains an offsite/supplemental license pursuant to s. |
| 145 | 320.771(7) and meets any one of the following conditions: |
| 146 | (a) For sales of the same line-make within another |
| 147 | dealer's designated area of sales responsibility, the dealer |
| 148 | must obtain in advance of the off-premise sale a written |
| 149 | agreement signed by the dealer, the manufacturer of the |
| 150 | recreational vehicles to be sold at the off-premise sale, and |
| 151 | the dealer in whose designated area of sales responsibility the |
| 152 | off-premise sale will occur which: |
| 153 | 1. Designates the line-make of the recreational vehicles |
| 154 | to be sold; |
| 155 | 2. Sets forth the time period for the off-premise sale; |
| 156 | and |
| 157 | 3. Affirmatively authorizes the sale of the same line-make |
| 158 | of the recreational vehicles. |
| 159 | (b) The off-premise sale is not located within any |
| 160 | dealer's designated area of sales responsibility and is in |
| 161 | conjunction with a public vehicle show. |
| 162 | (c) The off-premise sale is in conjunction with a public |
| 163 | vehicle show in which more than 35 dealers are participating and |
| 164 | the show is predominantly funded by manufacturers. For the |
| 165 | purposes of this subsection, the term "public vehicle show" |
| 166 | means an event sponsored by an organization approved under s. |
| 167 | 501(c)(6) of the Internal Revenue Code which has the purpose of |
| 168 | promoting the welfare of the recreational vehicle industry and |
| 169 | is located at a site that: |
| 170 | 1. Will be used to display and sell recreational vehicles; |
| 171 | 2. Is not used for off-premise sales for more than 10 days |
| 172 | in a calendar year; and |
| 173 | 3. Is not the location set forth on any dealer's license |
| 174 | as its place of business. |
| 175 | Section 4. Section 320.3205, Florida Statutes, is created |
| 176 | to read: |
| 177 | 320.3205 Termination, cancellation, and nonrenewal of a |
| 178 | manufacturer/dealer agreement.-- |
| 179 | (1) A manufacturer or distributor, directly or through any |
| 180 | officer, agent, or employee, may not terminate, cancel, or fail |
| 181 | to renew a manufacturer/dealer agreement without good cause, |
| 182 | and, upon renewal, may not require additional inventory stocking |
| 183 | requirements or increased retail sales targets in excess of the |
| 184 | market growth in the dealer's area of sales responsibility. |
| 185 | (a) The manufacturer or distributor has the burden of |
| 186 | showing good cause for terminating, canceling, or failing to |
| 187 | renew a manufacturer/dealer agreement with a dealer. For |
| 188 | purposes of determining whether there is good cause for the |
| 189 | proposed action, any of the following factors may be considered: |
| 190 | 1. The extent of the affected dealer's penetration in the |
| 191 | relevant market area. |
| 192 | 2. The nature and extent of the dealer's investment in its |
| 193 | business. |
| 194 | 3. The adequacy of the dealer's service facilities, |
| 195 | equipment, parts, supplies, and personnel. |
| 196 | 4. The effect of the proposed action on the community. |
| 197 | 5. The extent and quality of the dealer's service under |
| 198 | recreational vehicle warranties. |
| 199 | 6. The failure to follow agreed-upon procedures or |
| 200 | standards related to the overall operation of the dealership. |
| 201 | 7. The dealer's performance under the terms of its |
| 202 | manufacturer/dealer agreement. |
| 203 | (b) Except as otherwise provided in this section, a |
| 204 | manufacturer or distributor shall provide a dealer with at least |
| 205 | 120 days' prior written notice of termination, cancellation, or |
| 206 | nonrenewal of the manufacturer/dealer agreement. |
| 207 | 1. The notice must state all reasons for the proposed |
| 208 | termination, cancellation, or nonrenewal and must further state |
| 209 | that if, within 30 days following receipt of the notice, the |
| 210 | dealer provides to the manufacturer or distributor a written |
| 211 | notice of intent to cure all claimed deficiencies, the dealer |
| 212 | will then have 120 days following receipt of the notice to |
| 213 | rectify the deficiencies. If the deficiencies are rectified |
| 214 | within 120 days, the manufacturer's or distributor's notice is |
| 215 | voided. If the dealer fails to provide the notice of intent to |
| 216 | cure the deficiencies in the prescribed time period, the |
| 217 | termination, cancellation, or nonrenewal takes effect 30 days |
| 218 | after the dealer's receipt of the notice unless the dealer has |
| 219 | new and untitled inventory on hand that may be disposed of |
| 220 | pursuant to subsection (3). |
| 221 | 2. The notice period may be reduced to 30 days if the |
| 222 | grounds for termination, cancellation, or nonrenewal are due to: |
| 223 | a. A dealer or one of its owners being convicted of, or |
| 224 | entering a plea of nolo contendere to, a felony; |
| 225 | b. The abandonment or closing of the business operations |
| 226 | of the dealer for 10 consecutive business days unless the |
| 227 | closing is due to an act of God, strike, labor difficulty, or |
| 228 | other cause over which the dealer has no control; |
| 229 | c. A significant misrepresentation by the dealer |
| 230 | materially affecting the business relationship; or |
| 231 | d. A suspension or revocation of the dealer's license, or |
| 232 | refusal to renew the dealer's license, by the department. |
| 233 | 3. The notice provisions of this paragraph do not apply if |
| 234 | the reason for termination, cancellation, or nonrenewal is |
| 235 | insolvency, the occurrence of an assignment for the benefit of |
| 236 | creditors, or bankruptcy. |
| 237 | (2) A dealer may terminate, cancel, or not renew its |
| 238 | manufacturer/dealer agreement with a manufacturer or distributor |
| 239 | with or without cause at any time by giving 30 days' written |
| 240 | notice to the manufacturer. If the termination, cancellation, or |
| 241 | nonrenewal is for cause, the dealer has the burden of showing |
| 242 | good cause. Any of the following items shall be deemed good |
| 243 | cause for the proposed action by a dealer: |
| 244 | (a) A manufacturer being convicted of, or entering a plea |
| 245 | of nolo contendere to, a felony. |
| 246 | (b) The business operations of the manufacturer have been |
| 247 | abandoned or closed for 10 consecutive business days, unless the |
| 248 | closing is due to an act of God, strike, labor difficulty, or |
| 249 | other cause over which the manufacturer has no control. |
| 250 | (c) A significant misrepresentation by the manufacturer |
| 251 | materially affecting the business relationship. |
| 252 | (d) A material violation of ss. 320.3201-320.3211 which is |
| 253 | not cured within 30 days after written notice by the dealer. |
| 254 | (e) A declaration by the manufacturer of bankruptcy, |
| 255 | insolvency, or the occurrence of an assignment for the benefit |
| 256 | of creditors or bankruptcy. |
| 257 | (3) If the manufacturer/dealer agreement is terminated, |
| 258 | canceled, or not renewed by the manufacturer or distributor |
| 259 | without cause or by the dealer for cause, the manufacturer |
| 260 | shall, at the election of the dealer and within 45 days after |
| 261 | termination, cancellation, or nonrenewal, repurchase: |
| 262 | (a) All new, untitled recreational vehicles that were |
| 263 | acquired from the manufacturer or distributor within 18 months |
| 264 | before the date of the notice of termination, cancellation, or |
| 265 | nonrenewal that have not been used, except for demonstration |
| 266 | purposes, and that have not been altered or damaged, at 100 |
| 267 | percent of the net invoice cost, including transportation, less |
| 268 | applicable rebates and discounts to the dealer. If any of the |
| 269 | vehicles repurchased is damaged, the amount due to the dealer |
| 270 | shall be reduced by the cost to repair the damaged vehicle. |
| 271 | Damage prior to delivery to the dealer will not disqualify |
| 272 | repurchase under this subsection; |
| 273 | (b) All undamaged accessories and proprietary parts sold |
| 274 | to the dealer for resale within the 12 months prior to |
| 275 | termination, cancellation, or nonrenewal, if accompanied by the |
| 276 | original invoice, at 105 percent of the original net price paid |
| 277 | to the manufacturer or distributor to compensate the dealer for |
| 278 | handling, packing, and shipping the parts; and |
| 279 | (c) Any properly functioning diagnostic equipment, special |
| 280 | tools, current signage, and other equipment and machinery at 100 |
| 281 | percent of the dealer's net cost plus freight, destination, |
| 282 | delivery, and distribution charges and sales taxes, if any, if |
| 283 | it was purchased by the dealer within 5 years before |
| 284 | termination, cancellation, or nonrenewal and upon the |
| 285 | manufacturer's or distributor's request and can no longer be |
| 286 | used in the normal course of the dealer's ongoing business. |
| 287 |
|
| 288 | The manufacturer or distributor shall pay the dealer within 30 |
| 289 | days after receipt of the returned items. |
| 290 | (4) When taking on an additional line-make of recreational |
| 291 | vehicle, a dealer shall notify in writing any manufacturer with |
| 292 | whom the dealer has a manufacturer/dealer agreement of the same |
| 293 | line-make at least 30 days prior to entering into a |
| 294 | manufacturer/dealer agreement with the manufacturer of the |
| 295 | additional line-make. |
| 296 | Section 5. Section 320.3206, Florida Statutes, is created |
| 297 | to read: |
| 298 | 320.3206 Transfer of ownership; family succession.-- |
| 299 | (1) If a dealer desires to make a change in ownership by |
| 300 | the sale of the business assets, stock transfer, or otherwise, |
| 301 | the dealer shall give the manufacturer or distributor written |
| 302 | notice at least 10 business days before the closing, including |
| 303 | all supporting documentation as may be reasonably required by |
| 304 | the manufacturer or distributor to determine if an objection to |
| 305 | the sale may be made. In the absence of a breach by the selling |
| 306 | dealer of its dealer agreement or this chapter, the manufacturer |
| 307 | or distributor shall not object to the proposed change in |
| 308 | ownership unless the prospective transferee: |
| 309 | (a) Has previously been terminated by the manufacturer for |
| 310 | breach of its dealer agreement; |
| 311 | (b) Has been convicted of a felony or any crime of fraud, |
| 312 | deceit, or moral turpitude; |
| 313 | (c) Lacks any license required by law; |
| 314 | (d) Does not have an active line of credit sufficient to |
| 315 | purchase a manufacturer's product; or |
| 316 | (e) Has undergone in the last 10 years bankruptcy, |
| 317 | insolvency, a general assignment for the benefit of creditors, |
| 318 | or the appointment of a receiver, trustee, or conservator to |
| 319 | take possession of the transferee's business or property. |
| 320 | (2) If the manufacturer or distributor objects to a |
| 321 | proposed change of ownership, the manufacturer or distributor |
| 322 | shall give written notice of its reasons to the dealer within 7 |
| 323 | business days after receipt of the dealer's notification and |
| 324 | complete documentation. The manufacturer or distributor has the |
| 325 | burden of proof with regard to its objection. If the |
| 326 | manufacturer or distributor does not give timely notice of its |
| 327 | objection, the change or sale shall be deemed approved. |
| 328 | (3)(a) It is unlawful for a manufacturer or distributor to |
| 329 | fail to provide a dealer an opportunity to designate, in |
| 330 | writing, a family member as a successor to the dealership in the |
| 331 | event of the death, incapacity, or retirement of the dealer. It |
| 332 | is unlawful to prevent or refuse to honor the succession to a |
| 333 | dealership by a family member of the deceased, incapacitated, or |
| 334 | retired dealer unless the manufacturer or distributor has |
| 335 | provided to the dealer written notice of its objections within |
| 336 | 10 days after receipt of the dealer's modification of the |
| 337 | dealer's succession plan. In the absence of a breach of the |
| 338 | dealer agreement, the manufacturer may object to the succession |
| 339 | for the following reasons only: |
| 340 | 1. Conviction of the successor of a felony or any crime of |
| 341 | fraud, deceit, or moral turpitude; |
| 342 | 2. Bankruptcy or insolvency of the successor during the |
| 343 | past 10 years; |
| 344 | 3. Prior termination by the manufacturer of the successor |
| 345 | for breach of a dealer agreement; |
| 346 | 4. The lack of an active line of credit for the successor |
| 347 | sufficient to purchase the manufacturer's product; or |
| 348 | 5. The lack of any license for the successor required by |
| 349 | law. |
| 350 | (b) The manufacturer or distributor has the burden of |
| 351 | proof regarding its objection. However, a family member may not |
| 352 | succeed to a dealership if the succession involves, without the |
| 353 | manufacturer's or distributor's consent, a relocation of the |
| 354 | business or an alteration of the terms and conditions of the |
| 355 | manufacturer/dealer agreement. |
| 356 | Section 6. Section 320.3207, Florida Statutes, is created |
| 357 | to read: |
| 358 | 320.3207 Warranty obligations.-- |
| 359 | (1) Each warrantor shall: |
| 360 | (a) Specify in writing to each of its dealer obligations, |
| 361 | if any, for preparation, delivery, and warranty service on its |
| 362 | products; |
| 363 | (b) Compensate the dealer for warranty service required of |
| 364 | the dealer by the warrantor; and |
| 365 | (c) Provide the dealer the schedule of compensation to be |
| 366 | paid and the time allowances for the performance of any work and |
| 367 | service. |
| 368 |
|
| 369 | The schedule of compensation must include reasonable |
| 370 | compensation for diagnostic work as well as warranty labor. |
| 371 | (2) Time allowances for the diagnosis and performance of |
| 372 | warranty labor must be reasonable for the work to be performed. |
| 373 | The compensation of a dealer for warranty labor may not be less |
| 374 | than the lowest retail labor rates actually charged by the |
| 375 | dealer for like nonwarranty labor as long as such rates are |
| 376 | reasonable. |
| 377 | (3) The warrantor shall reimburse the dealer for warranty |
| 378 | parts at actual wholesale cost plus a minimum 30-percent |
| 379 | handling charge and the cost, if any, of freight to return |
| 380 | warranty parts to the warrantor. |
| 381 | (4) Warranty audits of dealer records may be conducted by |
| 382 | the warrantor on a reasonable basis, and dealer claims for |
| 383 | warranty compensation may not be denied except for cause, such |
| 384 | as performance of nonwarranty repairs, material noncompliance |
| 385 | with the warrantor's published policies and procedures, lack of |
| 386 | material documentation, fraud, or misrepresentation. |
| 387 | (5) The dealer shall submit warranty claims within 45 days |
| 388 | after completing work. |
| 389 | (6) The dealer shall notify the warrantor verbally or in |
| 390 | writing if the dealer is unable to perform material or |
| 391 | repetitive warranty repairs as soon as is reasonably possible. |
| 392 | (7) The warrantor shall disapprove warranty claims in |
| 393 | writing within 45 days after the date of submission by the |
| 394 | dealer in the manner and form prescribed by the warrantor. |
| 395 | Claims not specifically disapproved in writing within 45 days |
| 396 | shall be construed to be approved and must be paid within 60 |
| 397 | days. |
| 398 | (8) It is a violation of ss. 320.3201-320.3211 for any |
| 399 | warrantor to: |
| 400 | (a) Fail to perform any of its warranty obligations with |
| 401 | respect to its warranted products; |
| 402 | (b) Fail to include, in written notices of factory |
| 403 | campaigns to recreational vehicle owners and dealers, the |
| 404 | expected date by which necessary parts and equipment, including |
| 405 | tires and chassis or chassis parts, will be available to dealers |
| 406 | to perform the campaign work. The warrantor may ship parts to |
| 407 | the dealer to effect the campaign work, and, if such parts are |
| 408 | in excess of the dealer's requirements, the dealer may return |
| 409 | unused parts to the warrantor for credit after completion of the |
| 410 | campaign; |
| 411 | (c) Fail to compensate any of its dealers for authorized |
| 412 | repairs effected by the dealer of merchandise damaged in |
| 413 | manufacture or transit to the dealer, if the carrier is |
| 414 | designated by the warrantor, factory branch, distributor, or |
| 415 | distributor branch; |
| 416 | (d) Fail to compensate any of its dealers for authorized |
| 417 | warranty service in accordance with the schedule of compensation |
| 418 | provided to the dealer pursuant to this section if performed in |
| 419 | a timely and competent manner; |
| 420 | (e) Intentionally misrepresent in any way to purchasers of |
| 421 | recreational vehicles that warranties with respect to the |
| 422 | manufacture, performance, or design of the vehicle are made by |
| 423 | the dealer as warrantor or cowarrantor; or |
| 424 | (f) Require the dealer to make warranties to customers in |
| 425 | any manner related to the manufacture of the recreational |
| 426 | vehicle. |
| 427 | (9) It is a violation of ss. 320.3201-320.3211 for any |
| 428 | dealer to: |
| 429 | (a) Fail to perform predelivery inspection functions, as |
| 430 | specified by the warrantor, in a competent and timely manner; |
| 431 | (b) Fail to perform warranty service work authorized by |
| 432 | the warrantor in a reasonably competent and timely manner on any |
| 433 | transient customer's vehicle of the same line-make; or |
| 434 | (c) Misrepresent the terms of any warranty. |
| 435 | (10) Notwithstanding the terms of any manufacturer/dealer |
| 436 | agreement, it is a violation of ss. 320.3201-320.3211 for: |
| 437 | (a) A warrantor to fail to indemnify and hold harmless its |
| 438 | dealer against any losses or damages to the extent such losses |
| 439 | or damages are caused by the negligence or willful misconduct of |
| 440 | the warrantor. The dealer may not be denied indemnification for |
| 441 | failing to discover, disclose, or remedy a defect in the design |
| 442 | or manufacturing of the recreational vehicle. The dealer shall |
| 443 | provide to the warrantor a copy of any suit in which allegations |
| 444 | are made that come within this subsection within 10 days after |
| 445 | receiving such suit. |
| 446 | (b) A dealer to fail to indemnify and hold harmless its |
| 447 | warrantor against any losses or damages to the extent such |
| 448 | losses or damages are caused by the negligence or willful |
| 449 | misconduct of the dealer. The warrantor shall provide to the |
| 450 | dealer a copy of any suit in which allegations are made that |
| 451 | come within this subsection within 10 days after receiving such |
| 452 | suit. |
| 453 | Section 7. Section 320.3208, Florida Statutes, is created |
| 454 | to read: |
| 455 | 320.3208 Inspection and rejection by the dealer.-- |
| 456 | (1) Whenever a new recreational vehicle is damaged prior |
| 457 | to transit to the dealer or is damaged in transit to the dealer |
| 458 | when the carrier or means of transportation has been selected by |
| 459 | the manufacturer or distributor, the dealer shall notify the |
| 460 | manufacturer or distributor of the damage within the timeframe |
| 461 | specified in the manufacturer/dealer agreement and: |
| 462 | (a) Request from the manufacturer or distributor |
| 463 | authorization to replace the components, parts, and accessories |
| 464 | damaged or otherwise correct the damage; or |
| 465 | (b) Reject the vehicle within the timeframe set forth in |
| 466 | subsection (3). |
| 467 |
|
| 468 | If the manufacturer or distributor refuses or fails to authorize |
| 469 | repair of such damage within 10 days after receipt of |
| 470 | notification or if the dealer rejects the recreational vehicle |
| 471 | because of damage, ownership of the new recreational vehicle |
| 472 | reverts to the manufacturer or distributor. |
| 473 | (2) The dealer shall exercise due care in custody of the |
| 474 | damaged recreational vehicle, but the dealer shall have no other |
| 475 | obligations, financial or otherwise, with respect to that |
| 476 | recreational vehicle. |
| 477 | (3) The timeframe for inspection and rejection by the |
| 478 | dealer must be part of the manufacturer/dealer agreement and may |
| 479 | not be less than 2 business days after the physical delivery of |
| 480 | the recreational vehicle. |
| 481 | (4) Any recreational vehicle that has, at the time of |
| 482 | delivery to the dealer, an unreasonable amount of miles on its |
| 483 | odometer, as determined by the dealer, may be subject to |
| 484 | rejection by the dealer and reversion of the vehicle to the |
| 485 | manufacturer or distributor. In no instance shall a dealer deem |
| 486 | an amount less than the distance between the dealer and the |
| 487 | manufacturer's factory or a distributor's point of distribution, |
| 488 | plus 100 miles, as unreasonable. |
| 489 | Section 8. Section 320.3209, Florida Statutes, is created |
| 490 | to read: |
| 491 | 320.3209 Coercion of dealer prohibited.-- |
| 492 | (1) A manufacturer or distributor may not coerce or |
| 493 | attempt to coerce a dealer to: |
| 494 | (a) Purchase a product that the dealer did not order; |
| 495 | (b) Enter into an agreement with the manufacturer or |
| 496 | distributor; |
| 497 | (c) Take any action that is unfair or unreasonable to the |
| 498 | dealer; or |
| 499 | (d) Enter into an agreement that requires the dealer to |
| 500 | submit its disputes to binding arbitration or otherwise waive |
| 501 | rights or responsibilities provided under ss. 320.3201-320.3211. |
| 502 | (2) As used in this section, the term "coerce" includes, |
| 503 | but is not limited to, threatening to terminate, cancel, or not |
| 504 | renew a manufacturer/dealer agreement without good cause or |
| 505 | threatening to withhold product lines or delay product delivery |
| 506 | as an inducement to amending the manufacturer/dealer agreement. |
| 507 | Section 9. Section 320.3210, Florida Statutes, is created |
| 508 | to read: |
| 509 | 320.3210 Civil dispute resolution; mediation; relief.-- |
| 510 | (1) A dealer, manufacturer, distributor, or warrantor |
| 511 | injured by another party's violation of ss. 320.3201-320.3211 |
| 512 | may bring a civil action in circuit court to recover actual |
| 513 | damages. The court shall award attorney's fees and costs to the |
| 514 | prevailing party in such action. Venue for any civil action |
| 515 | authorized by this section must exclusively be in the county in |
| 516 | which the dealership is located. In an action involving more |
| 517 | than one dealer, venue may be in any county in which a dealer |
| 518 | who is party to the action is located. |
| 519 | (2) Before bringing suit under this section, the party |
| 520 | bringing suit for an alleged violation shall serve a written |
| 521 | demand for mediation upon the offending party. |
| 522 | (a) The demand for mediation shall be served upon the |
| 523 | offending party via certified mail at the address stated within |
| 524 | the agreement between the parties. In the event of a civil |
| 525 | action between two dealers, the demand must be mailed to the |
| 526 | address on the dealer's license filed with the department. |
| 527 | (b) The demand for mediation must contain a brief |
| 528 | statement of the dispute and the relief sought by the party |
| 529 | filing the demand. |
| 530 | (c) Within 20 days after the date a demand for mediation |
| 531 | is served, the parties shall mutually select an independent |
| 532 | certified mediator and meet with the mediator for the purpose of |
| 533 | attempting to resolve the dispute. The meeting place must be in |
| 534 | this state in a location selected by the mediator. The mediator |
| 535 | may extend the date of the meeting for good cause shown by |
| 536 | either party or upon stipulation of both parties. |
| 537 | (d) The service of a demand for mediation under this |
| 538 | subsection stays the time for the filing of any complaint, |
| 539 | petition, protest, or action under ss. 320.3201-320.3211 until |
| 540 | representatives of both parties have met with a mutually |
| 541 | selected mediator for the purpose of attempting to resolve the |
| 542 | dispute. If a complaint, petition, protest, or action is filed |
| 543 | before that meeting, the court shall enter an order suspending |
| 544 | the proceeding or action until the meeting has occurred and may, |
| 545 | upon written stipulation of all parties to the proceeding or |
| 546 | action that they wish to continue to mediate under this |
| 547 | subsection, enter an order suspending the proceeding or action |
| 548 | for as long a period as the court considers appropriate. A |
| 549 | suspension order issued under this paragraph may be revoked by |
| 550 | the court. |
| 551 | (e) The parties to the mediation shall bear their own |
| 552 | costs for attorney's fees and divide equally the cost of the |
| 553 | mediator. |
| 554 | (3) In addition to the remedies provided in this section |
| 555 | and notwithstanding the existence of any additional remedy at |
| 556 | law, a dealer or manufacturer may apply to a circuit court for |
| 557 | the grant, upon a hearing and for cause shown, of a temporary or |
| 558 | permanent injunction, or both, restraining any person from |
| 559 | acting as a dealer, manufacturer, distributor, or importer |
| 560 | without being properly licensed pursuant to this chapter, from |
| 561 | violating or continuing to violate any of the provisions of ss. |
| 562 | 320.3201-320.3211, or from failing or refusing to comply with |
| 563 | the requirements of ss. 320.3201-320.3211. Such injunction shall |
| 564 | be issued without bond. A single act in violation of s. 320.3203 |
| 565 | is sufficient to authorize the issuance of an injunction. |
| 566 | Section 10. Section 320.3211, Florida Statutes, is created |
| 567 | to read: |
| 568 | 320.3211 Penalties.-- |
| 569 | (1) The department may suspend or revoke any license |
| 570 | issued under s. 320.771 upon a finding that the dealer, |
| 571 | manufacturer, distributor, or importer violated any provision of |
| 572 | ss. 320.3201-320.3211. The department may impose, levy, and |
| 573 | collect by legal process fines, in an amount not to exceed |
| 574 | $1,000 for each violation, against any person if it finds that |
| 575 | such person has violated any provision of ss. 320.3201-320.3211. |
| 576 | Such person is entitled to an administrative hearing pursuant to |
| 577 | chapter 120 to contest the action or fine levied, or about to be |
| 578 | levied, against the person. |
| 579 | (2) In addition to the civil and administrative remedies, |
| 580 | a person who violates any provision of ss. 320.3201-320.3211 |
| 581 | commits a misdemeanor of the second degree, punishable as |
| 582 | provided in s. 775.082 or s. 775.083. |
| 583 | Section 11. Section 320.8225, Florida Statutes, is amended |
| 584 | to read: |
| 585 | 320.8225 Mobile home and recreational vehicle |
| 586 | manufacturer, distributor, and importer license manufacturer's |
| 587 | license.-- |
| 588 | (1) LICENSE REQUIRED.--Any person who engages in the |
| 589 | business of a mobile home manufacturer or a recreational vehicle |
| 590 | manufacturer, distributor, or importer in this state, or who |
| 591 | manufactures mobile homes or recreational vehicles out of state |
| 592 | which are ultimately offered for sale in this state, shall |
| 593 | obtain annually a license for each factory location in this |
| 594 | state and for each factory location out of state which |
| 595 | manufactures mobile homes or recreational vehicles for sale in |
| 596 | this state, prior to distributing or importing mobile homes or |
| 597 | recreational vehicles for sale in this state. |
| 598 | (2) APPLICATION.--The application for a license must shall |
| 599 | be in the form prescribed by the department and shall contain |
| 600 | sufficient information to disclose the identity, location, and |
| 601 | responsibility of the applicant. The application must shall also |
| 602 | include a copy of the warranty and a complete statement of any |
| 603 | service agreement or policy to be utilized by the applicant, any |
| 604 | information relating to the applicant's solvency and financial |
| 605 | standing, and any other pertinent matter commensurate with |
| 606 | safeguarding the public. The department may prescribe an |
| 607 | abbreviated application for renewal of a license if the licensee |
| 608 | has had previously filed an initial application pursuant to this |
| 609 | section. The application for renewal must shall include any |
| 610 | information necessary to make bring current the information |
| 611 | required in the initial application. |
| 612 | (3) FEES.--Upon submitting an making initial application, |
| 613 | the applicant shall pay to the department a fee of $300. Upon |
| 614 | submitting a making renewal application, the applicant shall pay |
| 615 | to the department a fee of $100. Any applicant for renewal who |
| 616 | fails has failed to submit his or her renewal application by |
| 617 | October 1 shall pay a renewal application fee equal to the |
| 618 | original application fee. No fee is refundable. All fees must |
| 619 | shall be deposited into the General Revenue Fund. |
| 620 | (4) NONRESIDENT.--Any person applying for a license who is |
| 621 | not a resident of this state must designate shall have |
| 622 | designated an agent for service of process pursuant to s. |
| 623 | 48.181. |
| 624 | (5) REQUIREMENT OF ASSURANCE.-- |
| 625 | (a) Annually, prior to the receipt of a license to |
| 626 | manufacture mobile homes, the applicant or licensee shall submit |
| 627 | a surety bond, cash bond, or letter of credit from a financial |
| 628 | institution, or a proper continuation certificate, sufficient to |
| 629 | assure satisfaction of claims against the licensee for failure |
| 630 | to comply with appropriate code standards, failure to provide |
| 631 | warranty service, or violation of any provisions of this |
| 632 | section. The amount of the surety bond, cash bond, or letter of |
| 633 | credit must shall be $50,000. Only one surety bond, cash bond, |
| 634 | or letter of credit shall be required for each manufacturer, |
| 635 | regardless of the number of factory locations. The surety bond, |
| 636 | cash bond, or letter of credit must shall be to the department, |
| 637 | in favor of any retail customer who suffers a shall suffer loss |
| 638 | arising out of noncompliance with code standards or failure to |
| 639 | honor or provide warranty service. The department may shall have |
| 640 | the right to disapprove any bond or letter of credit that does |
| 641 | not provide assurance as provided in this section. |
| 642 | (b) Annually, prior to the receipt of a license to |
| 643 | manufacture, distribute, or import recreational vehicles, the |
| 644 | applicant or licensee shall submit a surety bond, or a proper |
| 645 | continuation certificate, sufficient to assure satisfaction of |
| 646 | claims against the licensee for failure to comply with |
| 647 | appropriate code standards, failure to provide warranty service, |
| 648 | or violation of any provisions of this section. The amount of |
| 649 | the surety bond must shall be $10,000 per year. The surety bond |
| 650 | must shall be to the department, in favor of any retail customer |
| 651 | who suffers shall suffer loss arising out of noncompliance with |
| 652 | code standards or failure to honor or provide warranty service. |
| 653 | The department may shall have the right to disapprove any bond |
| 654 | that which does not provide assurance as provided in this |
| 655 | section. |
| 656 | (c) The department shall adopt rules pursuant to chapter |
| 657 | 120 relating to consistent with this section in providing |
| 658 | assurance of satisfaction of claims under this section. |
| 659 | (d) The department shall, upon denial, suspension, or |
| 660 | revocation of any license, notify the surety company of the |
| 661 | licensee, in writing, that the license has been denied, |
| 662 | suspended, or revoked and shall state the reason for such |
| 663 | denial, suspension, or revocation. |
| 664 | (e) Any surety company that which pays any claim against |
| 665 | the bond of any licensee shall notify the department, in |
| 666 | writing, that it has paid such a claim and shall state the |
| 667 | amount of the claim. |
| 668 | (f) Any surety company that which cancels the bond of any |
| 669 | licensee shall notify the department, in writing, of such |
| 670 | cancellation, giving reason for the cancellation. |
| 671 | (6) LICENSE YEAR.--A license issued to a mobile home |
| 672 | manufacturer or a recreational vehicle manufacturer, |
| 673 | distributor, or importer entitles the licensee to conduct the |
| 674 | business of a mobile home or recreational vehicle manufacturer |
| 675 | for a period of 1 year from October 1 preceding the date of |
| 676 | issuance. |
| 677 | (7) DENIAL OF LICENSE.--The department may deny a mobile |
| 678 | home manufacturer or a recreational vehicle manufacturer, |
| 679 | distributor, or importer manufacturer's license on the ground |
| 680 | that: |
| 681 | (a) The applicant has made a material misstatement in his |
| 682 | or her application for a license. |
| 683 | (b) The applicant has failed to comply with any applicable |
| 684 | provision of this chapter. |
| 685 | (c) The applicant has failed to provide warranty service. |
| 686 | (d) The applicant or one or more of his or her principals |
| 687 | or agents has violated any law, rule, or regulation relating to |
| 688 | the manufacture or sale of mobile homes or recreational |
| 689 | vehicles. |
| 690 | (e) The department has proof of the unfitness of the |
| 691 | applicant. |
| 692 | (f) The applicant or licensee has engaged in previous |
| 693 | conduct in any state which would have been a ground for |
| 694 | revocation or suspension of a license in this state. |
| 695 | (g) The applicant or licensee has violated any provision |
| 696 | of the provisions of the National Mobile Home Construction and |
| 697 | Safety Standards Act of 1974 or any related rule or regulation |
| 698 | adopted by of the Department of Housing and Urban Development |
| 699 | promulgated thereunder. |
| 700 |
|
| 701 | Upon denial of a license, the department shall notify the |
| 702 | applicant within 10 days, stating in writing its grounds for |
| 703 | denial. The applicant is entitled to an administrative a public |
| 704 | hearing and may request that such hearing be held within 45 days |
| 705 | of denial of the license. All proceedings must shall be pursuant |
| 706 | to chapter 120. |
| 707 | (8) REVOCATION OR SUSPENSION OF LICENSE.--The department |
| 708 | shall suspend or, in the case of a subsequent offense, shall |
| 709 | revoke any license upon a finding that the licensee violated any |
| 710 | provision of this chapter or any other law of this state |
| 711 | regarding the manufacture, warranty, or sale of mobile homes or |
| 712 | recreational vehicles. The department may reinstate the license |
| 713 | if it When any license has been revoked or suspended by the |
| 714 | department, it may be reinstated if the department finds that |
| 715 | the former licensee has complied with all applicable |
| 716 | requirements of this chapter and an application for a license is |
| 717 | refiled pursuant to this section. |
| 718 | (9) CIVIL PENALTIES; PROCEDURE.--In addition to the |
| 719 | exercise of other powers provided in this section, The |
| 720 | department is authorized to assess, impose, levy, and collect by |
| 721 | legal process a civil penalty, in an amount not to exceed $1,000 |
| 722 | for each violation, against any licensee if it finds that a |
| 723 | licensee has violated any provision of this section or has |
| 724 | violated any other law of this state having to do with dealing |
| 725 | in motor vehicles. A Any licensee is shall be entitled to a |
| 726 | hearing pursuant to chapter 120 should the licensee wish to |
| 727 | contest the fine levied, or about to be levied, upon him or her. |
| 728 | Section 12. If any provision of this act or the |
| 729 | application thereof to any person or circumstance is held |
| 730 | invalid, the invalidity does not affect other provisions or |
| 731 | applications of the act which can be given effect without the |
| 732 | invalid provision or application and, to this end, the |
| 733 | provisions of this act are severable. |
| 734 | Section 13. This act shall take effect October 1, 2007. |