Florida Senate - 2014 COMMITTEE AMENDMENT
Bill No. SB 832
Senate . House
Comm: RCS .
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
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
(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
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.