Bill Text: FL S0832 | 2014 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Motor Vehicle Sales

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2014-04-24 - Laid on Table, companion bill(s) passed, see CS/CS/HB 783 (Ch. 2014-130) [S0832 Detail]

Download: Florida-2014-S0832-Introduced.html

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       Florida Senate - 2014                                     SB 832
       
       
        
       By Senator Flores
       
       
       
       
       
       37-00759A-14                                           2014832__
    1                        A bill to be entitled                      
    2         An act relating to the financing of motor vehicles;
    3         reordering and amending s. 545.01, F.S.; defining
    4         terms; creating s. 545.045, F.S.; prohibiting a
    5         finance company that is affiliated with or controlled
    6         by, or that has a contractual relationship to
    7         represent, a manufacturer or wholesale distributor
    8         from adopting or implementing a policy or business
    9         practice that results in specified actions relating to
   10         certain finance obligations arising from the retail
   11         sale or lease of a motor vehicle that includes a
   12         specified third party automotive related product;
   13         providing an effective date.
   14          
   15  Be It Enacted by the Legislature of the State of Florida:
   16  
   17         Section 1. Section 545.01, Florida Statutes, is reordered
   18  and amended to read:
   19         545.01 Definitions.—As used in this chapter, the term:
   20         (1) “Automotive-related product” means a motor vehicle
   21  service agreement, as defined in s. 634.011, a guaranteed asset
   22  protection product, as defined in s. 520.02, or another
   23  ancillary product that is purchased or otherwise provided as
   24  part of the sale or lease of a motor vehicle by a dealer.
   25         (5)(1) The term “Person” as used in this chapter means an
   26  any individual, firm, corporation, partnership, limited
   27  liability company, association, trustee, receiver, or assignee
   28  for the benefit of creditors.
   29         (6)(2) The terms “Sell,” “sold,” “buy,” or and “purchase,”
   30  includes as used in this chapter, include an exchange, barter,
   31  gift, or and offer to contract to sell or buy.
   32         (4)(3) The term “Manufacturer” means a any person engaged,
   33  directly or indirectly, in the manufacture of motor vehicles.
   34         (8)(4) The term “Wholesale distributor” means a any person
   35  engaged, directly or indirectly, in the sale or distribution of
   36  motor vehicles to agents or to dealers.
   37         (2)(5) The term “Dealer” means a franchised motor vehicle
   38  dealer, as defined in s. 320.27. any person who is engaged in,
   39  or who intends to engage in the business of selling motor
   40  vehicles at retail in this state. The term “dealer” shall also
   41  include “retail agent.”
   42         (3)(6) The term “Finance company” means a any person
   43  engaged in the business of financing the sale or lease of motor
   44  vehicles, or engaged in the business of purchasing or acquiring
   45  vehicle contracts conditional bills of sale, or promissory
   46  notes, either secured by vendor’s lien or chattel mortgages, or
   47  arising from the sale of motor vehicles in this state.
   48         (7) “Vehicle contract” means a conditional sales contract,
   49  retail installment sales contract, chattel mortgage, lease
   50  agreement, promissory note, or any other financial obligation
   51  arising from the retail sale or lease of a motor vehicle.
   52         Section 2. Section 545.045, Florida Statutes, is created to
   53  read:
   54         545.045 Purchase or assignment of third-party financing.—
   55         (1) A finance company that is affiliated with or controlled
   56  by a manufacturer or wholesale distributor through common
   57  ownership, officers, directors, or management, or that has a
   58  contractual agreement to represent a manufacturer or wholesale
   59  distributor with respect to financing the sale or lease of motor
   60  vehicles, may not adopt or implement a policy or business
   61  practice that results in:
   62         (a) A refusal to purchase or accept the assignment of a
   63  vehicle contract from a dealer because the vehicle contract
   64  includes a third party automotive related product;
   65         (b) A charge to a dealer of an additional fee or surcharge
   66  for the purchase, or acceptance of the assignment, of a vehicle
   67  contract from a dealer because the vehicle contract includes a
   68  third party automotive related product; or
   69         (c) An offer to purchase or accept assignment of a vehicle
   70  contract from a dealer on less favorable terms than a vehicle
   71  contract that contains otherwise substantially similar credit
   72  risk, duration, and other terms, because the vehicle contract
   73  includes a third party automotive related product.
   74         (2) This section applies only if the third party automotive
   75  related product contained in the vehicle contract is of
   76  substantially similar or superior kind and quality to an
   77  automotive related product offered by the finance company or the
   78  manufacturer or wholesale distributor that is affiliated with or
   79  controls the finance company or with which the finance company
   80  has a contractual agreement.
   81         Section 3. This act shall take effect July 1, 2014.