Bill Text: FL S1820 | 2025 | Regular Session | Introduced
Bill Title: Motor Vehicle Manufacturers and Dealers
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2025-02-28 - Filed [S1820 Detail]
Download: Florida-2025-S1820-Introduced.html
Florida Senate - 2025 SB 1820
By Senator Leek
7-00486C-25 20251820__
1 A bill to be entitled
2 An act relating to motor vehicle manufacturers and
3 dealers; amending s. 320.60, F.S.; defining the term
4 “reservation”; revising the definition of the term
5 “sell”; amending s. 320.64, F.S.; prohibiting an
6 applicant or a licensee, or a common entity thereof,
7 from establishing, implementing, or enforcing certain
8 criteria for measuring the sales or service
9 performance of its franchised motor vehicle dealers
10 unless certain conditions are met; prohibiting an
11 applicant or a licensee, or a common entity thereof,
12 from engaging in an action that is taken as
13 retaliation against a motor vehicle dealer under
14 certain circumstances; conforming a cross-reference;
15 amending s. 320.641, F.S.; revising the circumstances
16 in which a discontinuation, cancellation, nonrenewal,
17 modification, or replacement of a franchise agreement
18 is deemed unfair; amending s. 320.67, F.S.; deleting a
19 provision requiring the Department of Highway Safety
20 and Motor Vehicles to conduct inquiries of licensees
21 relating to certain complaints made by certain motor
22 vehicle dealer associations; reenacting s. 320.642(6),
23 F.S., relating to dealer licenses in areas previously
24 served, to incorporate the amendment made to s.
25 320.60, F.S., in references thereto; providing an
26 effective date.
27
28 Be It Enacted by the Legislature of the State of Florida:
29
30 Section 1. Present subsections (16), (17), and (18) of
31 section 320.60, Florida Statutes, are redesignated as
32 subsections (17), (18), and (19), respectively, a new subsection
33 (16) is added to that section, and present subsection (16) of
34 that section is amended, to read:
35 320.60 Definitions for ss. 320.61-320.70.—Whenever used in
36 ss. 320.61-320.70, unless the context otherwise requires, the
37 following words and terms have the following meanings:
38 (16) “Reservation” means a process that is used to hold
39 open the opportunity for a specified consumer to place an order
40 for the purchase or lease of a new motor vehicle.
41 (17)(16) “Sell,” “selling,” “sold,” “exchange,” “retail
42 sales,” and “leases” include:
43 (a) Accepting a deposit or receiving a payment for the
44 retail purchase, lease, or other use of a motor vehicle, but
45 does not include facilitating a motor vehicle dealer’s
46 acceptance of a deposit or receipt of a payment from a consumer
47 or receiving payment under a retail installment sale contract;
48 (b) Accepting a reservation from a retail consumer for a
49 specific motor vehicle identified by a vehicle identification
50 number or other product identifier, except that this paragraph
51 does not apply to a manufacturer or distributor if the
52 reservation is assigned to a franchised dealer that is
53 authorized to sell the vehicle being reserved;
54 (c) Setting the retail price for the purchase, lease, or
55 other use of a motor vehicle, but does not include setting a
56 manufacturer’s suggested retail price;
57 (d) Offering or negotiating with a retail consumer terms
58 for the purchase, lease, or other use of a motor vehicle;
59 (e) Offering or negotiating with a retail consumer a value
60 for a motor vehicle being traded in as part of the purchase,
61 lease, or other use of a motor vehicle, but does not include a
62 website or other means of electronic communication that
63 identifies to a consumer a conditional trade-in value and that
64 contains language informing the consumer that the trade-in value
65 is not binding on any motor vehicle dealer;
66 (f) Any transaction where the title of a motor vehicle or a
67 used motor vehicle is transferred to a retail consumer; or
68 (g) Any retail lease transaction where a retail consumer
69 leases a vehicle for a period of at least 12 months, but does
70 not include administering lease agreements, taking assignments
71 of leases, performing required actions pursuant to such leases,
72 or receiving payments under a lease agreement that was
73 originated by a motor vehicle dealer.
74
75 This subsection does not apply to the replacement of a
76 consumer’s vehicle pursuant to chapter 681.
77 Section 2. Subsections (23) and (42) of section 320.64,
78 Florida Statutes, are amended, and subsection (43) is added to
79 that section, to read:
80 320.64 Denial, suspension, or revocation of license;
81 grounds.—A license of a licensee under s. 320.61 may be denied,
82 suspended, or revoked within the entire state or at any specific
83 location or locations within the state at which the applicant or
84 licensee engages or proposes to engage in business, upon proof
85 that the section was violated with sufficient frequency to
86 establish a pattern of wrongdoing, and a licensee or applicant
87 shall be liable for claims and remedies provided in ss. 320.695
88 and 320.697 for any violation of any of the following
89 provisions. A licensee is prohibited from committing the
90 following acts:
91 (23) The applicant or licensee has engaged in any of the
92 activities of a motor vehicle dealer as defined in s.
93 320.60(13)(a) or any of the activities described in s.
94 320.60(17) s. 320.60(16) or has competed or is competing with
95 respect to any activity covered by the franchise agreement with
96 a motor vehicle dealer of the same line-make located in this
97 state with whom the applicant or licensee has entered into a
98 franchise agreement, except as permitted in s. 320.645 or in
99 subsection (24) with respect to the remote electronic
100 transmission of a permanent or temporary feature or improvement
101 of a motor vehicle.
102 (42)(a) The applicant or licensee, or a common entity
103 thereof, has established, implemented, or enforced criteria for
104 measuring the sales or service performance of any of its
105 franchised motor vehicle dealers in this state which have a
106 material or adverse effect on any motor vehicle dealer and
107 which:
108 1. Are unfair, unreasonable, arbitrary, or inequitable; or
109 2. Do not include all relevant and material local and
110 regional criteria, data, and facts. Relevant and material
111 criteria, data, or facts include, but are not limited to, those
112 of motor vehicle dealerships of comparable size in comparable
113 markets. If such performance measurement criteria are based, in
114 whole or in part, on a survey, such survey must be based on a
115 statistically significant and valid random sample.
116 (b) The An applicant or, licensee, or a common entity
117 thereof, has implemented or enforced criteria for measuring the
118 sales or service performance of any of its franchised motor
119 vehicle dealers in this state without providing, before such
120 implementation or enforcement, a written description to each
121 such franchised, or an affiliate thereof, which enforces against
122 any motor vehicle dealer any such performance measurement
123 criteria shall, upon the request of the motor vehicle dealer,
124 describe in writing to the motor vehicle dealer in this state
125 which states, in detail, how the performance measurement
126 criteria were designed, calculated, established, and uniformly
127 applied.
128 (43) The applicant or licensee, or a common entity thereof,
129 has engaged in an action, or implemented a policy, standard,
130 rule, practice, or program, taken as retaliation against a motor
131 vehicle dealer because the dealer invoked a statutory right
132 created by ss. 320.60-320.70, asserted that the applicant,
133 licensee, or common entity has acted in a manner that violates a
134 provision of ss. 320.60-320.70, or has testified, assisted, or
135 participated in any manner in an investigation, a proceeding, or
136 a hearing that may directly affect the applicant, licensee, or
137 common entity.
138
139 A motor vehicle dealer who can demonstrate that a violation of,
140 or failure to comply with, any of the preceding provisions by an
141 applicant or licensee will or may adversely and pecuniarily
142 affect the complaining dealer, shall be entitled to pursue all
143 of the remedies, procedures, and rights of recovery available
144 under ss. 320.695 and 320.697.
145 Section 3. Subsection (3) of section 320.641, Florida
146 Statutes, is amended to read:
147 320.641 Discontinuations, cancellations, nonrenewals,
148 modifications, and replacement of franchise agreements.—
149 (3) Any motor vehicle dealer who receives a notice of
150 intent to discontinue, cancel, not renew, modify, or replace
151 may, within the 90-day notice period, file a petition or
152 complaint for a determination of whether such action is an
153 unfair or prohibited discontinuation, cancellation, nonrenewal,
154 modification, or replacement. Agreements and certificates of
155 appointment must shall continue in effect until final
156 determination of the issues raised in such petition or complaint
157 by the motor vehicle dealer.
158 (a) A discontinuation, cancellation, or nonrenewal of a
159 franchise agreement is unfair if all of the following apply:
160 1. if It is not clearly permitted by the franchise
161 agreement.;
162 2. It is not undertaken in good faith.;
163 3. It is not undertaken for good cause.;
164 4. It or is based on a claim that the dealer substantially
165 and materially breached an alleged breach of the franchise
166 agreement except where the discontinuation, cancellation, or
167 nonrenewal applies to all same line-make franchised motor
168 vehicle dealers and is otherwise permitted by ss. 320.60-320.70.
169 which is not in fact a material and substantial breach; or, if
170 5. The grounds relied upon for discontinuation termination,
171 cancellation, or nonrenewal have not been applied in a uniform
172 and consistent manner by the licensee.
173 (b) If the notice of discontinuation, cancellation, or
174 nonrenewal relates to an alleged failure of the new motor
175 vehicle dealer’s sales or service performance obligations under
176 the franchise agreement, the new motor vehicle dealer must first
177 be provided with at least 180 days to correct the alleged
178 failure before a licensee may send the notice of
179 discontinuation, cancellation, or nonrenewal.
180 (c) A modification or replacement is unfair if all of the
181 following apply:
182 1. if It is not clearly permitted by the franchise
183 agreement.;
184 2. It is not undertaken in good faith.; or
185 3. It is not undertaken for good cause.
186 (d) The applicant or licensee has shall have the burden of
187 proof that such discontinuation, cancellation, nonrenewal,
188 modification, or replacement action is fair and not prohibited.
189 Section 4. Subsection (1) of section 320.67, Florida
190 Statutes, is amended to read:
191 320.67 Violations by dealers; complaint; conduct of
192 inquiry; inspection of records; penalties.—
193 (1) The department shall conduct an inquiry of a licensee
194 relating to any written complaint alleging a violation of any
195 provision of ss. 320.61-320.70 against such licensee made by a
196 motor vehicle dealer with a current franchise agreement issued
197 by the licensee, or a motor vehicle dealer association with at
198 least one member with a current franchise agreement issued by
199 the licensee.
200 Section 5. For the purpose of incorporating the amendment
201 made by this act to section 320.60, Florida Statutes, in a
202 reference thereto, subsection (6) of section 320.642, Florida
203 Statutes, is reenacted to read:
204 320.642 Dealer licenses in areas previously served;
205 procedure.—
206 (6) When a proposed addition or relocation concerns a
207 dealership that performs or is to perform only service, as
208 defined in s. 320.60, and will not or does not sell or lease, as
209 defined in s. 320.60, new motor vehicles, the proposal shall be
210 subject to notice and protest pursuant to the provisions of this
211 section.
212 (a) Standing to protest the addition or relocation of a
213 service-only dealership shall be limited to those instances in
214 which the applicable mileage requirement established in
215 subparagraphs (3)(a)2. and (3)(b)1. is met.
216 (b) The addition or relocation of a service-only dealership
217 shall not be subject to protest if:
218 1. The applicant for the service-only dealership location
219 is an existing motor vehicle dealer of the same line-make as the
220 proposed additional or relocated service-only dealership;
221 2. There is no existing dealer of the same line-make closer
222 than the applicant to the proposed location of the additional or
223 relocated service-only dealership; and
224 3. The proposed location of the additional or relocated
225 service-only dealership is at least 7 miles from all existing
226 motor vehicle dealerships of the same line-make, other than
227 motor vehicle dealerships owned by the applicant.
228 (c) In determining whether existing franchised motor
229 vehicle dealers are providing adequate representations in the
230 community or territory for the line-make in question in a
231 protest of the proposed addition or relocation of a service-only
232 dealership, the department may consider the elements set forth
233 in paragraph (2)(b), provided:
234 1. With respect to subparagraph (2)(b)1., only the impact
235 as it relates to service may be considered;
236 2. Subparagraph (2)(b)3. shall not be considered;
237 3. With respect to subparagraph (2)(b)9., only service
238 facilities shall be considered; and
239 4. With respect to subparagraph (2)(b)11., only the volume
240 of service business transacted shall be considered.
241 (d) If an application for a service-only dealership is
242 granted, the department must issue a license which permits only
243 service, as defined in s. 320.60, and does not permit the
244 selling or leasing, as defined in s. 320.60, of new motor
245 vehicles. If a service-only dealership subsequently seeks to
246 sell new motor vehicles at its location, the notice and protest
247 provisions of this section shall apply.
248 Section 6. This act shall take effect July 1, 2025.
