HB 1269

1	A bill to be entitled
2	An act relating to motor vehicle dealers; amending s.
3	320.64, F.S.; revising prohibitions against actions by a
4	licensed motor vehicle manufacturer, factory branch,
5	distributor, or importer; prohibiting requiring a motor
6	vehicle dealer to relocate, expand, improve, remodel,
7	renovate, or alter certain approved facilities; providing
8	for the licensee to offer certain inducements for such
9	changes under certain conditions; prohibiting adverse
10	action for refusal; revising a prohibition against certain
11	changes in supply to a dealer; prohibiting adverse action
12	against a dealer who sold or leased a motor vehicle to a
13	customer who exported the vehicle to a foreign country, or
14	who resold the vehicle, unless the licensee proves actual
15	knowledge; revising prohibitions against certain audits;
16	prohibiting certain acts that discriminate against one
17	dealer in favor of another; creating s. 320.6412, F.S.;
18	providing that no franchise agreement shall be terminated,
19	canceled, discontinued, or not renewed on the basis of
20	misrepresentation, fraud, or filing false or fraudulent
21	statements or claims, unless the licensee proves actual
22	knowledge; amending s. 320.696, F.S.; revising provisions
23	for responsibilities of a licensee for work performed
24	pursuant to warranty, preparation procedures, or recall,
25	directive, or bulletin; providing requirements for
26	compensation to a motor vehicle dealer for such work;
27	providing procedures for determining compensation amounts;
28	providing for changes in compensation amounts; prohibiting
29	certain acts to recover compensation costs; prohibiting
30	certain acts of discrimination against a dealer; providing
31	for severability; providing an effective date.
32
33	Be It Enacted by the Legislature of the State of Florida:
34
35	Section 1.  Subsections (10), (18), (22), (25), (26), and
36	(30) of section 320.64, Florida Statutes, are amended, and
37	subsection (38) is added to that section, to read:
38	320.64  Denial, suspension, or revocation of license;
39	grounds.--A license of a licensee under s. 320.61 may be denied,
40	suspended, or revoked within the entire state or at any specific
41	location or locations within the state at which the applicant or
42	licensee engages or proposes to engage in business, upon proof
43	that the section was violated with sufficient frequency to
44	establish a pattern of wrongdoing, and a licensee or applicant
45	shall be liable for claims and remedies provided in ss. 320.695
46	and 320.697 for any violation of any of the following
47	provisions. A licensee is prohibited from committing the
48	following acts:
49	(10)(a)  The applicant or licensee has attempted to enter,
50	or has entered, into a franchise agreement with a motor vehicle
51	dealer who does not, at the time of the franchise agreement,
52	have proper facilities to provide the services to his or her
53	purchasers of new motor vehicles which are covered by the new
54	motor vehicle warranty issued by the applicant or licensee.
55	Notwithstanding any provision of a franchise agreement, once a
56	licensee has approved the sales and service facilities of a
57	motor vehicle dealer, the licensee shall not thereafter require,
58	by agreement, policy, or standard, any of its motor vehicle
59	dealers to relocate, expand, improve, remodel, renovate, or
60	alter any part of those facilities.
61	(b)  Notwithstanding paragraph (a), a licensee may provide
62	a loan or grant of money to a motor vehicle dealer as an
63	inducement for relocation, expansion, improvement, remodeling,
64	or renovation of any of its facilities, provided:
65	1.  The licensee delivers an assurance to the motor vehicle
66	dealer that it will supply a sufficient quantity of new motor
67	vehicles, consistent with its allocation obligations under the
68	law and to its other same line-make motor vehicle dealers, to
69	the motor vehicle dealer that will economically justify such
70	relocation, expansion, improvement, remodeling, or renovation in
71	light of reasonably current and reasonably projected market and
72	economic conditions;
73	2.  The provisions of the loan or grant and assurance, and
74	the basis therefor, are contained in a written agreement
75	voluntarily entered into by the motor vehicle dealer; and
76	3.  The loan or grant is made available on equal terms to
77	the licensee's other franchised motor vehicle dealers in this
78	state.
79	(c)  A licensee may not withhold a benefit that is
80	available to its other franchised dealers in this state from, or
81	take or threaten to take an action that is unfair or adverse to,
82	a motor vehicle dealer that elects not to enter into an
83	agreement with the licensee as provided in paragraph (b).
84	(d)  A licensee shall not fail or refuse to offer any
85	program for a bonus, incentive, or other benefit, in whole or in
86	part, to any of its franchised motor vehicle dealers in this
87	state that it offers to its other authorized dealers nationally
88	or in the licensee's zone or region in which this state is
89	included.
90	(e)  Any portion of any program offered by a licensee for a
91	bonus, incentive, or other benefit that, in whole or in part, is
92	based upon, or is aimed at, inducing a motor vehicle dealer's
93	relocation, expansion, improvement, remodeling, renovation, or
94	alteration shall be deemed void as to each of the licensee's
95	franchised motor vehicle dealers in this state. However, such
96	dealers shall be eligible for the entire amount of such bonus,
97	incentive, or other benefit offered in the program upon
98	compliance with the other basis or eligibility provisions
99	contained in such program.
100	(f)  Notwithstanding any provision contained in this
101	subsection, a licensee may set reasonable standards for a motor
102	vehicle dealer's sales and service facilities related to upkeep,
103	repair, and cleanliness.
104	(18)  The applicant or licensee has established a system of
105	motor vehicle allocation or distribution or has implemented a
106	system of allocation or distribution of motor vehicles to one or
107	more of its franchised motor vehicle dealers which reduces or
108	alters allocations or supplies of new motor vehicles to a motor
109	vehicle dealer in order to achieve, directly or indirectly, a
110	purpose that is prohibited by ss. 320.60-320.70 or which
111	otherwise is unfair, inequitable, unreasonably discriminatory,
112	or not supportable by reason and good cause after considering
113	the equities of the affected motor vehicles dealer or dealers.
114	An applicant or licensee shall maintain for 3 years records that
115	describe its methods or formula of allocation and distribution
116	of its motor vehicles and records of its actual allocation and
117	distribution of motor vehicles to its motor vehicle dealers in
118	this state. As used in this subsection, the term "unfair"
119	includes, but is not limited to, refusal or failure to offer any
120	franchised motor vehicle dealer an equitable supply of new motor
121	vehicles covered by its franchise agreement, by model, mix, or
122	colors, as the licensee offers or makes available to its other
123	same line-make motor vehicle dealers in this state.
124	(22)  The applicant or licensee has refused to deliver, in
125	reasonable quantities and within a reasonable time, to any duly
126	licensed motor vehicle dealer who has an agreement with such
127	applicant or licensee for the retail sale of new motor vehicles
128	and parts for motor vehicles sold or distributed by the
129	applicant or licensee, any such motor vehicles or parts as are
130	covered by such agreement. Such refusal includes the failure to
131	offer to its same line-make franchised motor vehicle dealers all
132	models manufactured for that line-make, or requiring a dealer to
133	pay any extra fee, require a dealer to execute a separate
134	franchise agreement, purchase unreasonable advertising displays
135	or other materials, or relocate, expand, improve, remodel,
136	renovate, or recondition, or alter the dealer's existing
137	facilities, or provide exclusive facilities as a prerequisite to
138	receiving a model or series of vehicles. However, the failure to
139	deliver any motor vehicle or part will not be considered a
140	violation of this section if the failure is due to an act of
141	God, work stoppage, or delay due to a strike or labor
142	difficulty, a freight embargo, product shortage, or other cause
143	over which the applicant or licensee has no control. An
144	applicant or licensee may impose reasonable requirements on the
145	motor vehicle dealer, other than the items listed above,
146	including, but not limited to, the purchase of special tools
147	required to properly service a motor vehicle and the undertaking
148	of sales person or service person training related to the motor
149	vehicle.
150	(25)  The applicant or licensee has undertaken an audit of
151	warranty payments or incentive payment previously paid to a
152	motor vehicle dealer in violation of this section or has failed
153	to comply with any of its obligations under s. 320.696. An
154	applicant or licensee may reasonably and periodically audit a
155	motor vehicle dealer to determine the validity of paid claims as
156	provided in s. 320.696. Audit of warranty payments shall only be
157	for the 1-year period immediately following the date the claim
158	was paid. Audit of incentive payments shall only be for an 18-
159	month period immediately following the date the incentive was
160	paid. An applicant or licensee shall not deny a claim or charge
161	a motor vehicle dealer back subsequent to the payment of the
162	claim unless the applicant or licensee can show that the claim
163	was false or fraudulent or that the motor vehicle dealer failed
164	to substantially comply with the reasonable written and
165	uniformly applied procedures of the applicant or licensee for
166	such repairs or incentives. An applicant or licensee may not
167	charge a motor vehicle dealer back subsequent to the payment of
168	a claim unless a representative of the applicant or licensee
169	first meets in person, by telephone, or by video teleconference
170	with an officer or employee of the dealer designated by the
171	motor vehicle dealer. At such meeting the applicant or licensee
172	must provide a detailed explanation, with supporting
173	documentation, as to the basis for each of the claims for which
174	the applicant or licensee proposed a charge-back to the dealer
175	and a written statement containing the basis upon which the
176	motor vehicle dealer was selected for audit or review.
177	Thereafter, the applicant or licensee must provide the motor
178	vehicle dealer's representative a reasonable period after the
179	meeting within which to respond to the proposed charge-backs,
180	with such period to be commensurate with the volume of claims
181	under consideration, but in no case less than 45 days after the
182	meeting. The applicant or licensee is prohibited from changing
183	or altering the basis for each of the proposed charge-backs as
184	presented to the motor vehicle dealer's representative following
185	the conclusion of the audit unless the applicant or licensee
186	receives new information affecting the basis for one or more
187	charge-backs. If the applicant or licensee claims the existence
188	of new information, the dealer must be given the same right to a
189	meeting and right to respond as when the charge-back was
190	originally presented.
191	(26)  Notwithstanding the terms of any franchise agreement,
192	including any licensee's program, policy, or procedure, the
193	applicant or licensee has refused to allocate, sell, or deliver
194	motor vehicles; charged back or withheld payments or other
195	things of value for which the dealer is otherwise eligible under
196	a sales promotion, program, or contest; or prevented the motor
197	vehicle dealer from participating in any promotion, program, or
198	contest; or taken any adverse action against a motor vehicle
199	dealer, including, but not limited to, terminating or
200	threatening to terminate a franchise because the dealer sold or
201	leased a motor vehicle to a customer who exported the vehicle to
202	a foreign country or who resold the vehicle, unless the licensee
203	proves that the motor vehicle dealer had actual knowledge that
204	the customer's intent was to export or resell the motor vehicle.
205	There will be a conclusive presumption that the motor vehicle
206	dealer had no such actual knowledge for selling a motor vehicle
207	to a customer who was present at the dealership and the motor
208	vehicle dealer did not know or should not have reasonably known
209	that the vehicle would be shipped to a foreign country. There
210	will be a rebuttable presumption that the dealer did not know or
211	should not have reasonably known that the vehicle would be
212	shipped to a foreign country if the vehicle is titled in one of
213	the 50 United States.
214	(30)  The applicant or licensee has conducted or threatened
215	to conduct any audit of a motor vehicle dealer in order to
216	coerce or attempt to coerce the dealer to forego any right or
217	remedy rights granted to the dealer under ss. 320.60-320.70 or
218	under the agreement between the licensee and the motor vehicle
219	dealer. Nothing in this section shall prohibit an applicant or
220	licensee from reasonably and periodically auditing a dealer to
221	determine the validity of paid claims as permitted in this
222	chapter, provided the licensee complies with all provisions of
223	ss. 320.60-320.70 applicable to such audits.
224	(38)  The licensee has discriminated or threatened to
225	discriminate against any of its franchised motor vehicle dealers
226	in this state in favor of another dealer or other dealers of the
227	same line-make in this state by:
228	(a)  Selling or offering to sell a new motor vehicle to any
229	motor vehicle dealer at a lower actual price, including the
230	price for vehicle transportation, than the actual price at which
231	the same model similarly equipped is offered to or is available
232	to another dealer in this state during a similar time period; or
233	(b)  Offering or using a promotional program or device, or
234	an incentive, bonus, payment, or other benefit, whether paid at
235	the time of the sale of the new motor vehicle to the dealer or
236	later, that results in the sale or offer to sell a new motor
237	vehicle to a motor vehicle dealer at a lower price, including
238	the price for vehicle transportation, than the price at which
239	the same model similarly equipped is offered or is available to
240	another dealer in this state during a similar time period. This
241	subsection shall not prohibit a promotional, bonus, or incentive
242	program that is functionally available to competing dealers of
243	the same line-make in this state on substantially comparable
244	terms.
245
246	A motor vehicle dealer who can demonstrate that a violation of,
247	or failure to comply with, any of the preceding provisions by an
248	applicant or licensee will or can adversely and pecuniarily
249	affect the complaining dealer, shall be entitled to pursue all
250	of the remedies, procedures, and rights of recovery available
251	under ss. 320.695 and 320.697.
252	Section 2.  Section 320.6412, Florida Statutes, is created
253	to read:
254	320.6412  Termination based on misrepresentation; evidence
255	required.--Notwithstanding s. 320.64, or any of the provisions
256	of any franchise agreement, no franchise agreement of any motor
257	vehicle dealer shall be terminated, canceled, discontinued, or
258	not renewed by any licensee on the basis of misrepresentation,
259	fraud, or filing false or fraudulent statements or claims,
260	unless the licensee proves by clear and convincing evidence at a
261	hearing that the majority owner or, if there is no majority
262	owner, the person designated as dealer-operator or dealer-
263	principal in the franchise agreement had actual knowledge of
264	such misrepresentation or fraud or the filing of false
265	statements or claims at the time any such conduct was allegedly
266	perpetrated on a customer or a licensee and failed within a
267	reasonable time after being so advised to take such actions
268	reasonably calculated to prevent such misrepresentation, fraud,
269	or filing of false or fraudulent statements or claims from
270	continuing or reoccurring.
271	Section 3.  Section 320.696, Florida Statutes, is amended
272	to read:
273	320.696  Warranty responsibility.--
274	(1)(a)  The licensee shall timely compensate any authorized
275	motor vehicle dealer who performs work to:
276	1.  Maintain or repair a licensee's product under a
277	warranty or maintenance plan, extended warranty, certified
278	preowned vehicle warranty, or service contract issued by the
279	licensee or its common entity;
280	2.  Fulfill a licensee's delivery or preparation
281	procedures; or
282	3.  Make repairs to a motor vehicle as a result of a
283	licensee's or common entity's recall or other directive or
284	bulletin.
285	(b)  As used in this section, unless the context clearly
286	requires otherwise, the term:
287	1.  "Compensate" and "compensation" include all labor and
288	parts included in the work as provided in this section.
289	2.  "Labor" includes, without limitation, the time spent by
290	employees of a motor vehicle dealer for diagnosis or repair of a
291	vehicle.
292	3.  "Parts" includes all replacement parts and accessories.
293	4.  "Retail customer repair" refers to work, including
294	parts and labor, performed by a motor vehicle dealer that does
295	not come within the provisions of a licensee's or its common
296	entity's warranty, extended warranty, service contract, or
297	maintenance plan, but excludes parts and labor described in
298	paragraphs (3)(b) and (4)(c).
299	5.  "Work" and "repair" include all items contained in
300	paragraph (a), as the case may be.
301	(c)  Compensation not paid to a motor vehicle dealer within
302	30 days after receipt of a claim therefor is deemed untimely. A
303	licensee shall not establish or implement any term, policy, or
304	procedure different from those described in this section for any
305	of its motor vehicle dealers to obtain compensation due under
306	this section or pay a motor vehicle dealer less than amounts due
307	as described in this section.
308	(2)  No licensee shall take or threaten to take any adverse
309	action against any of its franchised motor vehicle dealers who
310	seek to obtain compensation described in this section. The term
311	"adverse action" includes, without limitation, taking or
312	omitting to take any action other than in good faith; creating
313	or implementing any obstacle or process that is inconsistent
314	with any of the licensee's obligations under this section;
315	hindering, delaying, or rejecting the proper and timely payment
316	of compensation due under this section to a motor vehicle
317	dealer; establishing, implementing, enforcing, or applying any
318	policy, standard, rule, program, or incentive regarding
319	compensation due under this section other than in a uniformly
320	and nondisparate manner among the licensee's franchised dealers
321	in this state; conducting or threatening to conduct any
322	warranty, retail customer repair, or other service-related audit
323	more frequently than once each calendar year; or denying,
324	reducing, or charging back any warranty claim because of a motor
325	vehicle dealer's failure to comply with all of the specific
326	requirements of a licensee for processing a claim. Inclusion of
327	the examples in this subsection shall not exclude other conduct
328	from the meaning of the term "adverse action."
329	(3)(a)1.  As provided in this subsection, a licensee shall
330	compensate a motor vehicle dealer for all parts used in
331	performing any of the work described in subsection (1). The
332	compensation may be an agreed percentage markup over the
333	licensee's dealer cost but, if no agreement is reached within 30
334	days after a motor vehicle dealer's written request therefor,
335	compensation for such parts shall be deemed to be the greater
336	of:
337	a.  The motor vehicle dealer's arithmetical mean percentage
338	markup over dealer cost for all parts charged by the motor
339	vehicle dealer in 25 consecutive retail customer repair orders
340	made and selected by the motor vehicle dealer within the 3-month
341	period prior to the written request, or all of such retail
342	customer repair orders over the previous 3 months if there are
343	fewer than 25 retail customer repair orders in that period,
344	provided no motor vehicle dealer's repair order shall be
345	excluded from this computation because it contains both warranty
346	or maintenance work and retail customer repairs. However, only
347	the retail customer repair portion of such repair order shall be
348	included in this computation, and those parts described in
349	paragraph (b) shall be excluded from this computation;
350	b.  The licensee's highest suggested retail or list price
351	for such parts; or
352	c.  An amount equal to the motor vehicle dealer's markup
353	over dealer cost that results in the same gross profit
354	percentage for parts used in work done under subsection (1) as
355	the motor vehicle dealer is receiving for parts used in the
356	dealer's customer retail repairs as evidenced by the motor
357	vehicle dealer's financial statement delivered to the licensee
358	for the month preceding the motor vehicle dealer's written
359	request.
360	2.  If a licensee decreases its suggested retail or list
361	price for any replacement part or accessory, it shall also
362	decrease by at least the identical percentage the cost to the
363	motor vehicle dealer for such part or accessory. The markup or
364	gross profit percentage described in this subsection shall be
365	uniformly applied to all of the licensee's parts used by the
366	motor vehicle dealer in performing work described under
367	subsection (1).
368	(b)  For purposes of determining compensation to be paid
369	for parts under sub-subparagraph (a)1.a., parts discounted by a
370	motor vehicle dealer for repairs made in group, fleet,
371	insurance, or other third-party-payor service work; parts used
372	in repairs for government agencies for which volume discounts
373	have been negotiated; parts used in special events, or
374	"specials," or promotional discounts for retail customer
375	repairs; parts sold by the dealer at wholesale; parts used for a
376	dealer's internal repairs; engine assemblies and transmission
377	assemblies; nuts, bolts, fasteners, and similar items that do
378	not have an individual part number; and tires shall all be
379	excluded in determining a motor vehicle dealer's average
380	percentage markup over dealer cost.
381	(c)  Notwithstanding the provisions of paragraph (a), if a
382	licensee furnishes a part or component to a motor vehicle dealer
383	at no cost for use in the motor vehicle dealer's performance of
384	repairs under a recall or service action or warranty, the
385	licensee shall compensate the motor vehicle dealer for such part
386	or component in the same manner as warranty parts compensation
387	under this subsection, less the dealer cost for such part or
388	component as listed in the licensee's then-current price
389	schedule.
390	(d)  No licensee shall establish or implement any special
391	part or component number for parts used in predelivery, dealer
392	preparation, warranty, or maintenance-only applications if such
393	number results in lower compensation to the motor vehicle dealer
394	than such compensation as described in paragraphs (a), (b), and
395	(c).
396	(4)(a)  A licensee shall compensate a motor vehicle dealer
397	for all labor performed in connection with work described in
398	subsection (1) in amounts as described under paragraphs (b) and
399	(c).
400	(b)1.  Compensation paid by a licensee to a motor vehicle
401	dealer may be an agreed hourly labor rate but, if no agreement
402	is reached within 30 days after a motor vehicle dealer's written
403	request therefor, labor compensation shall be, at the election
404	of the motor vehicle dealer, the greater of:
405	a.  The motor vehicle dealer's hourly labor rate for retail
406	customer repairs, which shall be determined by dividing the
407	amount of the motor vehicle dealer's total labor sales for
408	retail customer repairs by the number of total labor hours which
409	generated those total sales for the month preceding the written
410	request, excluding the work described in paragraph (c); or
411	b.  An amount equal to the motor vehicle dealer's markup
412	over dealer cost that results in the same gross profit
413	percentage for labor hours used in work done under subsection
414	(1) as the motor vehicle dealer is receiving for labor used in
415	the dealer's customer retail repairs as evidenced by the motor
416	vehicle dealer's financial statement delivered to the licensee
417	for the month preceding the motor vehicle dealer's written
418	request, provided the motor vehicle dealer provides in the
419	written request the arithmetical mean of the compensation for
420	all of its technicians during that preceding month and that
421	arithmetical mean shall be the "dealer cost" used in such
422	calculation.
423	2.  Once an hourly labor rate is agreed or determined
424	pursuant to this subsection, the licensee shall uniformly apply
425	and pay that hourly labor rate for all labor used by the motor
426	vehicle dealer in performing work described in subsection (1),
427	provided no licensee shall pay an hourly labor rate less than
428	the hourly rate it was paying to the motor vehicle dealer for
429	work done under subsection (1) on January 1, 2008. No licensee
430	shall eliminate flat rate times from, or establish any
431	unreasonable flat rate time in, its warranty repair manual,
432	warranty time guide, or any other similarly named document. A
433	licensee shall establish reasonable flat-rate labor times in its
434	warranty repair manuals and warranty time guides for its newly
435	introduced model motor vehicles which are at least consistent
436	with its existing such documents. A motor vehicle dealer who
437	disputes as unreasonable any flat-rate time established by the
438	licensee or its common entity may bring an action against the
439	licensee or common entity in the circuit court for the county in
440	which the motor vehicle dealer's principal place of business is
441	located for such relief as is provided in this chapter. As used
442	in this subsection, the terms "retail customer repair" and
443	"similar work" are not limited to a repair to the same model
444	vehicle or model year but shall include a prior repair that
445	resembles but may not be identical to the repair for which the
446	motor vehicle dealer is making a claim for compensation under
447	this section.
448	(c)  In determining the hourly labor rate for compensation
449	to be paid by a licensee for all work under sub-subparagraph
450	(b)1.a., a motor vehicle dealer's labor charges for its internal
451	vehicle repairs; for vehicle reconditioning; for repairs
452	performed for group, fleet, insurance, or other third-party
453	payors; for discounted repairs of motor vehicles for government
454	agencies; and for labor used in special events, "specials,"
455	"express service," and promotional discounts shall not be
456	included as retail customer repairs and shall be excluded from
457	any calculation under sub-subparagraph (b)1.a.
458	(5)  A licensee shall not review, change, or fail to pay a
459	motor vehicle dealer's parts or labor compensation as determined
460	under this section unless a motor vehicle dealer has requested a
461	change or pursuant to a licensee's written predetermined
462	schedule for increasing parts or labor compensation. A motor
463	vehicle dealer may make written requests for changes in
464	compensation for parts or labor for work performed under this
465	section not more often than semiannually. The motor vehicle
466	dealer shall attach supporting documentation as described in
467	this section to each written request. A motor vehicle dealer's
468	written request for changes in parts or labor compensation under
469	this section shall be deemed accepted unless the licensee,
470	within 30 days after receipt thereof, in writing, disputes with
471	specificity the supporting documentation contained in the motor
472	vehicle dealer's written request. Any motor vehicle dealer whose
473	request for increased compensation under this section has been
474	disputed shall have the right to bring an action against the
475	licensee in a court of competent jurisdiction in the county in
476	which the motor vehicle dealer's principal place of business is
477	located for a declaratory judgment for approval of its change
478	request under this section, for an injunction precluding the
479	licensee from refusing to compensate the motor vehicle dealer as
480	provided in this section, or for damages, all as provided in
481	this chapter. In calculating damages, any increase in parts or
482	labor determined in such litigation to be due to the motor
483	vehicle dealer under this section shall be ordered paid to the
484	motor vehicle dealer for all work performed under this
485	subsection retroactively to the date of the licensee's receipt
486	of such written request.
487	(6)  A licensee shall not recover, or seek or attempt to
488	recover, directly or indirectly, any of its costs for
489	compensating any of its motor vehicle dealers under this
490	section, including, without limitation, by decreasing or
491	eliminating solely in this state at one or more of its motor
492	vehicle dealers any bonus or incentive that it placed in effect
493	nationally or regionally; by reducing solely in this state at
494	one or more of its motor vehicle dealers any of its dealer's
495	gross margin for any of the licensee's products or services when
496	the wholesale price charged to the motor vehicle dealer is
497	determined by the licensee and which reduction is not in effect
498	nationally or regionally; or by imposing any separate charge or
499	surcharge to the wholesale price paid by a motor vehicle dealer
500	in this state to the licensee for any product or service offered
501	to or supplied by a licensee, either under its franchise
502	agreement with the motor vehicle dealer or by passing on to the
503	motor vehicle dealer any such charge or surcharge of a common
504	entity of such licensee.
505	(7)  A licensee shall not require, influence, or attempt to
506	influence a motor vehicle dealer to implement or change the
507	prices or charges for which it sells parts or labor for retail
508	customer repairs. A licensee shall not implement or continue a
509	policy, procedure, or program with respect to one or more of its
510	licensed motor vehicle dealers in this state for compensation
511	under this section that is less favorable to its franchised
512	motor vehicle dealers in this state than is applicable to its
513	franchised dealers nationally or regionally or, if there is no
514	such national or regional policy, to its franchised dealers in a
515	majority of states.
516	(8)  If a court of competent jurisdiction determines with
517	finality that any provision or any part thereof contained in
518	this section is void or unenforceable, the remaining provisions
519	thereof shall not be affected by such determination but shall
520	remain in full force and effect. The licensee shall reasonably
521	and timely compensate any authorized motor vehicle dealer who
522	performs work, including labor and parts, to rectify the
523	licensee's product or warranty defects or fulfills delivery and
524	preparation obligations. In the determination of what
525	constitutes reasonable compensation under this section, the
526	factors to be given consideration shall include, among others,
527	the compensation being paid by other licensees to their dealers,
528	the prevailing wage rate being paid by the dealers, and the
529	prevailing labor rate being charged by the dealers, in the city
530	or community in which the dealer is doing business. For the
531	purpose of this section, reasonable compensation for work,
532	including labor and parts, by a motor vehicle dealer for
533	warranty repairs or service, including labor and parts, on
534	behalf of a licensee shall be determined to be equal to the
535	amount charged by the dealer for like work to retail customers
536	for nonwarranty repairs and service, including labor and parts,
537	unless the licensee has demonstrated and established in a
538	proceeding before the department that the dealer's retail
539	charges for labor and parts are improper in light of all
540	economic circumstances. Compensation not paid within 30 days
541	after receipt or notice of billing is presumed untimely. A
542	licensee may not otherwise recover, or seek to recover, any of
543	its costs for compensating a motor vehicle dealer for warranty
544	work, including labor and parts, by imposing on a motor vehicle
545	dealer any charge or surcharge to the wholesale price paid by a
546	motor vehicle dealer to the licensee for any product, including
547	motor vehicles and parts.
548	Section 4.  This act shall take effect July 1, 2008.

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