Florida Senate - 2014                        COMMITTEE AMENDMENT
       Bill No. SB 832
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  03/05/2014           .                                

    1         Senate Amendment (with title amendment)
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Section 545.01, Florida Statutes, is reordered
    6  and amended to read:
    7         545.01 Definitions.—As used in this chapter, the term:
    8         (1) “Affiliated finance company” means a finance company
    9  which:
   10         (a) Is affiliated with or controlled by a manufacturer or
   11  wholesale distributor through common ownership, officers,
   12  directors, or management; or
   13         (b) Has a contractual agreement with a manufacturer or
   14  wholesale distributor to finance, via sale or lease, motor
   15  vehicles produced or distributed by such manufacturer or
   16  wholesale distributor.
   17         (2) “Automotive related product” means a motor vehicle
   18  service agreement, as defined in s. 634.011, or a guaranteed
   19  asset protection product, as defined in s. 520.02, or other non
   20  tangible ancillary product that is purchased or otherwise
   21  provided as part of the sale or lease of a motor vehicle by a
   22  dealer.
   23         (6)(1)The term “Person” as used in this chapter means an
   24  any individual, firm, corporation, partnership, limited
   25  liability company, association, trustee, receiver, or assignee
   26  for the benefit of creditors.
   27         (7)(2)The terms “Sell,” “sold,” “buy,or and “purchase,”
   28  includes as used in this chapter, include an exchange, barter,
   29  gift, or and offer to contract to sell or buy.
   30         (5)(3)The term “Manufacturer” means a any person engaged,
   31  directly or indirectly, in the manufacture of motor vehicles.
   32         (10)(4)The term “Wholesale distributor” means a any person
   33  engaged, directly or indirectly, in the sale or distribution of
   34  motor vehicles to agents or to dealers.
   35         (3)(5)The term “Dealer” means a franchised motor vehicle
   36  dealer, as defined in s. 320.27(1)(c)1. any person who is
   37  engaged in, or who intends to engage in the business of selling
   38  motor vehicles at retail in this state. The term “dealer” shall
   39  also include “retail agent.”
   40         (4)(6)The term “Finance company” means a any person
   41  engaged in the business of financing the sale or lease of motor
   42  vehicles, or engaged in the business of purchasing or acquiring
   43  vehicle contracts conditional bills of sale, or promissory
   44  notes, either secured by vendor’s lien or chattel mortgages, or
   45  arising from the sale of motor vehicles in this state.
   46         (8) “Third party provider” means a provider of an
   47  automotive related product that is not an affiliated finance
   48  company, manufacturer, or wholesale distributor.
   49         (9) “Vehicle contract” means a conditional sales contract,
   50  retail installment sales contract, chattel mortgage, lease
   51  agreement, promissory note, or any other financial obligation
   52  arising from the retail sale or lease of a motor vehicle.
   53         Section 2. Section 545.045, Florida Statutes, is created to
   54  read:
   55         545.045 Purchase or assignment of third-party financing.—
   56         (1) When a vehicle contract contains a third party
   57  provider’s automotive related product that is of similar nature,
   58  scope, and quality to an automotive related product offered for
   59  sale by an affiliated finance company or its related
   60  manufacturer or wholesale distributor, that affiliated finance
   61  company may not, solely because the vehicle contract contains a
   62  third party’s automotive related product:
   63         (a) Refuse to purchase or accept the assignment of the
   64  vehicle contract from a dealer;
   65         (b) Charge a dealer an additional fee or surcharge for the
   66  purchase of, or acceptance of the assignment of, the vehicle
   67  contract; or
   68         (c) Offer to purchase or accept assignment of the vehicle
   69  contract from a dealer on less favorable terms than a vehicle
   70  contract that contains otherwise substantially similar credit
   71  risk, duration, and other terms.
   72         (2) Factors in determining whether an automotive related
   73  product is similar in nature, scope, and quality include, but
   74  are not limited to, the financial capacity of the third party
   75  provider to meet all its obligations, inclusive of any
   76  contractual liability insurance policies, and the third party
   77  provider’s history of compliance with any applicable state and
   78  federal regulations.
   79         (3) A violation of this section does not constitute a
   80  criminal offense pursuant to s. 545.12.
   81  Section 3. This act shall take effect July 1, 2014.
   83  ================= T I T L E  A M E N D M E N T ================
   84  And the title is amended as follows:
   85         Delete everything before the enacting clause
   86  and insert:
   87                        A bill to be entitled                      
   88         An act relating to the financing of motor vehicles;
   89         amending s. 545.01, F.S.; revising definitions;
   90         defining terms; creating s. 545.045, F.S.; prohibiting
   91         a finance company that is affiliated with or
   92         controlled by, or that has a contractual relationship
   93         with, a manufacturer or wholesale distributor from
   94         taking specified actions relating to certain finance
   95         obligations arising from the retail sale or lease of a
   96         motor vehicle that includes a third party’s automotive
   97         related product; providing an effective date.