Florida Senate - 2014                        COMMITTEE AMENDMENT
       Bill No. CS for SB 832
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  04/10/2014           .                                

    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; or
   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.
   68         (2) Factors in determining whether an automotive-related
   69  product is similar in nature, scope, and quality include, but
   70  are not limited to, the financial capacity of the third-party
   71  provider to meet all of its obligations, inclusive of any
   72  contractual liability insurance policies, and the third-party
   73  provider’s history of compliance with any applicable state and
   74  federal regulations.
   75         (3) A violation of this section does not constitute a
   76  criminal offense pursuant to s. 545.12.
   77         Section 3. Paragraphs (c) and (d) of subsection (1) of
   78  section 320.27, Florida Statutes, are amended to read:
   79         320.27 Motor vehicle dealers.—
   80         (1) DEFINITIONS.—The following words, terms, and phrases
   81  when used in this section have the meanings respectively
   82  ascribed to them in this subsection, except where the context
   83  clearly indicates a different meaning:
   84         (c) “Motor vehicle dealer” means any person engaged in the
   85  business of buying, selling, or dealing in motor vehicles or
   86  offering or displaying motor vehicles for sale at wholesale or
   87  retail, or who may service and repair motor vehicles pursuant to
   88  an agreement as defined in s. 320.60(1). Any person who buys,
   89  sells, or deals in three or more motor vehicles in any 12-month
   90  period or who offers or displays for sale three or more motor
   91  vehicles in any 12-month period shall be prima facie presumed to
   92  be engaged in such business. The terms “selling” and “sale”
   93  include lease-purchase transactions. A motor vehicle dealer may,
   94  at retail or wholesale, sell a recreational vehicle as described
   95  in s. 320.01(1)(b)1.-6. and 8., acquired in exchange for the
   96  sale of a motor vehicle, provided such acquisition is incidental
   97  to the principal business of being a motor vehicle dealer.
   98  However, a motor vehicle dealer may not buy a recreational
   99  vehicle for the purpose of resale unless licensed as a
  100  recreational vehicle dealer pursuant to s. 320.771. A motor
  101  vehicle dealer may apply for a certificate of title to a motor
  102  vehicle required to be registered under s. 320.08(2)(b), (c),
  103  and (d), using a manufacturer’s statement of origin as permitted
  104  by s. 319.23(1), only if such dealer is authorized by a
  105  franchised agreement as defined in s. 320.60(1), to buy, sell,
  106  or deal in such vehicle and is authorized by such agreement to
  107  perform delivery and preparation obligations and warranty defect
  108  adjustments on the motor vehicle; provided this limitation shall
  109  not apply to recreational vehicles, van conversions, or any
  110  other motor vehicle manufactured on a truck chassis. The
  111  transfer of a motor vehicle by a dealer not meeting these
  112  qualifications shall be titled as a used vehicle. The
  113  classifications of motor vehicle dealers are defined as follows:
  114         1. “Franchised motor vehicle dealer” means any person who
  115  engages in the business of repairing, servicing, buying,
  116  selling, or dealing in motor vehicles pursuant to an agreement
  117  as defined in s. 320.60(1).
  118         2. “Independent motor vehicle dealer” means any person
  119  other than a franchised or wholesale motor vehicle dealer who
  120  engages in the business of buying, selling, or dealing in motor
  121  vehicles, and who may service and repair motor vehicles.
  122         3. “Wholesale motor vehicle dealer” means any person who
  123  engages exclusively in the business of buying, selling, or
  124  dealing in motor vehicles at wholesale or with motor vehicle
  125  auctions. Such person shall be licensed to do business in this
  126  state, may shall not sell or auction a vehicle to any person who
  127  is not a licensed dealer, and may shall not have the privilege
  128  of the use of dealer license plates. Any person who buys, sells,
  129  or deals in motor vehicles at wholesale or with motor vehicle
  130  auctions on behalf of a licensed motor vehicle dealer and as a
  131  bona fide employee of such licensed motor vehicle dealer is not
  132  required to be licensed as a wholesale motor vehicle dealer. In
  133  such cases it shall be prima facie presumed that a bona fide
  134  employer-employee relationship exists. A wholesale motor vehicle
  135  dealer shall be exempt from the display provisions of this
  136  section but shall maintain an office wherein records are kept in
  137  order that those records may be inspected.
  138         4. “Motor vehicle auction” means any person offering motor
  139  vehicles or recreational vehicles for sale to the highest bidder
  140  where buyers are licensed motor vehicle dealers. Such person may
  141  shall not sell a vehicle to anyone other than a licensed motor
  142  vehicle dealer.
  143         5. “Salvage motor vehicle dealer” means any person who
  144  engages in the business of acquiring salvaged or wrecked motor
  145  vehicles for the purpose of reselling them and their parts.
  147  The term “motor vehicle dealer” does not include persons not
  148  engaged in the purchase or sale of motor vehicles as a business
  149  who are disposing of vehicles acquired for their own use or for
  150  use in their business or acquired by foreclosure or by operation
  151  of law, provided such vehicles are acquired and sold in good
  152  faith and not for the purpose of avoiding the provisions of this
  153  law; persons engaged in the business of manufacturing, selling,
  154  or offering or displaying for sale at wholesale or retail no
  155  more than 25 trailers in a 12-month period; public officers
  156  while performing their official duties; receivers; trustees,
  157  administrators, executors, guardians, or other persons appointed
  158  by, or acting under the judgment or order of, any court; banks,
  159  finance companies, or other loan agencies that acquire motor
  160  vehicles as an incident to their regular business; motor vehicle
  161  brokers; and motor vehicle rental and leasing companies that
  162  sell motor vehicles to motor vehicle dealers licensed under this
  163  section. Vehicles owned under circumstances described in this
  164  paragraph may be disposed of at retail, wholesale, or auction,
  165  unless otherwise restricted. A manufacturer of fire trucks,
  166  ambulances, or school buses may sell such vehicles directly to
  167  governmental agencies or to persons who contract to perform or
  168  provide firefighting, ambulance, or school transportation
  169  services exclusively to governmental agencies without processing
  170  such sales through dealers if such fire trucks, ambulances,
  171  school buses, or similar vehicles are not presently available
  172  through motor vehicle dealers licensed by the department.
  173         (d) “Motor vehicle broker” means any person engaged in the
  174  business of offering to procure or procuring motor vehicles for
  175  the general public, or who holds himself or herself out through
  176  solicitation, advertisement, or otherwise as one who offers to
  177  procure or procures motor vehicles for the general public, and
  178  who does not store, display, or take ownership of any vehicles
  179  for the purpose of selling such vehicles.
  180         Section 4. This act shall take effect July 1, 2014.
  182  ================= T I T L E  A M E N D M E N T ================
  183  And the title is amended as follows:
  184         Delete everything before the enacting clause
  185  and insert:
  186                        A bill to be entitled                      
  187         An act relating to motor vehicle sales; amending s.
  188         545.01, F.S.; revising and reordering definitions;
  189         defining terms; creating s. 545.045, F.S.; prohibiting
  190         an affiliated finance company from taking specified
  191         actions relating to certain finance obligations
  192         arising from a vehicle contract that contains a third
  193         party provider’s specified automotive-related product;
  194         providing factors to determine whether an automotive
  195         related product is similar in nature, scope, and
  196         quality to an automotive-related product offered for
  197         sale by an affiliated finance company or its related
  198         manufacturer or wholesale distributor; providing that
  199         a violation does not constitute a criminal offense;
  200         amending s. 320.27, F.S.; deleting the definition of
  201         the term “motor vehicle broker”; conforming a
  202         reference; providing an effective date.