HB 929

1	A bill to be entitled
2	An act relating to unfair or deceptive acts or
3	practices involving motor vehicles; amending s.
4	501.975, F.S.; defining the term "business day" and
5	conforming provisions; creating s. 501.977, F.S.;
6	providing for the disposition of certain claims
7	against motor vehicle dealers before civil litigation;
8	requiring claimants to provide written notice of such
9	claims to motor vehicle dealers before initiating
10	litigation; specifying the required contents and
11	procedures for providing the written notices;
12	directing the Department of Legal Affairs to adopt a
13	notice-of-claim form; authorizing the department to
14	adopt rules; requiring motor vehicle dealers to
15	provide a copy of the notice-of-claim form to each
16	customer; authorizing claimants to initiate litigation
17	without prior notice to motor vehicle dealers that do
18	not provide copies of the notice-of-claim form;
19	prohibiting a claimant from initiating litigation
20	against a motor vehicle dealer that pays the actual
21	damages claimed plus a surcharge within a specified
22	period; limiting a motor vehicle dealer's further
23	liability upon payment of a claim; limiting a motor
24	vehicle dealer's liability for payment of attorney
25	fees under certain circumstances; tolling time
26	limitations for initiating litigation against motor
27	vehicle dealers under certain circumstances; limiting
28	admissibility of a motor vehicle dealer's payment or
29	offer to pay a claimant's actual damages; providing
30	applicability; providing an effective date.
31
32	Be It Enacted by the Legislature of the State of Florida:
33
34	Section 1.  Section 501.975, Florida Statutes, is amended
35	to read:
36	501.975  Definitions.-As used in this part s. 501.976, the
37	term following terms shall have the following meanings:
38	(1)  "Business day" means any day other than a Saturday,
39	Sunday, or legal holiday.
40	(2)(1)  "Customer" includes a customer's designated agent.
41	(3)(2)  "Dealer" means a motor vehicle dealer as defined in
42	s. 320.27, but does not include a motor vehicle auction as
43	defined in s. 320.27(1)(c)4.
44	(4)(3)  "Replacement item" means a tire, bumper, bumper
45	fascia, glass, in-dashboard equipment, seat or upholstery cover
46	or trim, exterior illumination unit, grill, sunroof, external
47	mirror and external body cladding. The replacement of up to
48	three of these items does not constitute repair of damage if
49	each item is replaced because of a product defect or damaged due
50	to vandalism while the new motor vehicle is under the control of
51	the dealer and the items are replaced with original manufacturer
52	equipment, unless an item is replaced due to a crash, collision,
53	or accident.
54	(5)(4)  "Threshold amount" means 3 percent of the
55	manufacturer's suggested retail price of a motor vehicle or
56	$650, whichever is less.
57	(6)(5)  "Vehicle" means any automobile, truck, bus,
58	recreational vehicle, or motorcycle required to be licensed
59	under chapter 320 for operation over the roads of Florida, but
60	does not include trailers, mobile homes, travel trailers, or
61	trailer coaches without independent motive power.
62	Section 2.  Section 501.977, Florida Statutes, is created
63	to read:
64	501.977  Disposal of claims before civil litigation; notice
65	of claim.-
66	(1)  At least 15 days before a claimant may initiate civil
67	litigation against a dealer under part II or this part, the
68	claimant must provide the dealer with written notice of the
69	claim and the claimant's good-faith intent to initiate
70	litigation. The written notice of claim must include:
71	(a)  A statement that the notice of claim is provided under
72	this section.
73	(b)  The name, address, and telephone number of the
74	claimant.
75	(c)  The name and address of the dealer.
76	(d)  The date and description of the transaction, event, or
77	circumstances upon which the claim is based.
78	(e)  The provisions of part II or this part which the
79	dealer is claimed to have violated and a specific description of
80	the underlying facts that show the violation.
81	(f)  A comprehensive, detailed statement describing each
82	item for which actual damages are claimed and recoverable under
83	part II or this part and the amount claimed for each item,
84	including, to the extent applicable, the formula or basis by
85	which the damages are calculated.
86	(2)(a)  The Department of Legal Affairs shall adopt a
87	notice-of-claim form that provides blank spaces for the
88	information required under subsection (1) and includes an
89	explanation of part II and this part. The department shall
90	publish a copy of its notice-of-claim form on the department's
91	Internet website. The department may adopt rules to administer
92	this paragraph.
93	(b)  A dealer shall provide a copy of the department's
94	notice-of-claim form to each customer at the time of each
95	transaction, and the dealer must include on the form the name or
96	position title and address of the person to whom the notice of
97	claim must be provided under subsection (4) or the name and
98	address of the dealer's business division assigned by the dealer
99	with responsibility for processing claims.
100	(c)  A dealer's failure to provide a copy of the
101	department's notice-of-claim form to a claimant constitutes
102	waiver of the dealer's right to notice under this section, and,
103	notwithstanding subsection (1), the claimant may initiate civil
104	litigation without providing the dealer with prior notice of the
105	claim.
106	(3)  Each notice of claim, to the extent applicable, must
107	be accompanied by a copy of each transaction or other document
108	upon which the claim is based or upon which the claimant relied
109	in asserting the claim.
110	(4)(a)  A notice of claim must be provided to the dealer by
111	certified or registered United States mail, return receipt
112	requested, to the dealer's registered agent, any person listed
113	in s. 48.081(1) if the dealer does not have a registered agent,
114	or, if included on the notice-of-claim form provided to
115	customers by the dealer, the dealer's business division assigned
116	by the dealer with responsibility for processing claims.
117	(b)  If the dealer pays the claim under paragraph (5)(a)
118	and if requested by the claimant, the dealer shall reimburse the
119	claimant for the postal costs of providing the notice.
120	(5)  Notwithstanding any provision of part II or this part:
121	(a)  A claimant may not initiate civil litigation against a
122	dealer under part II or this part if the dealer, within 15
123	business days after receipt of the notice of claim, pays to the
124	claimant:
125	1.  The amount of actual damages claimed in the notice
126	under paragraph (1)(f).
127	2.  A surcharge equal to 10 percent of the amount of actual
128	damages claimed in the notice, not to exceed a surcharge of
129	$500. A claimant is not entitled to a surcharge if the dealer
130	rejects or does not respond to the claimant's notice of claim.
131	(b)  A dealer that pays the claimant for actual damages and
132	the surcharge is not further liable to the claimant for the
133	transaction, event, or circumstances described in the notice of
134	claim.
135	(c)  A dealer is not required to pay the claimant's
136	attorney fees in any civil litigation initiated under part II or
137	this part if the dealer, within 15 business days after receipt
138	of the notice of claim, notifies the claimant in writing, and a
139	court or arbitrator agrees, that:
140	1.  The amount claimed is not supported by the underlying
141	facts described in the notice of claim or by generally accepted
142	accounting principles or the amount claimed includes items that
143	are not recoverable under part II or this part; or
144	2.  The claimant has not substantially complied with this
145	section.
146	(d)  Any time limitation on initiating civil litigation
147	under part II or this part is tolled for 15 business days, or
148	for such other period as agreed to in writing by the parties,
149	after the date that the notice of claim provided to the dealer
150	under paragraph (4)(a) is postmarked by the United States Postal
151	Service.
152	(6)  A dealer's payment of the claimant's actual damages or
153	offer to pay such damages is:
154	(a)  Not an admission of any wrongdoing by the dealer.
155	(b)  Inadmissible as evidence under s. 90.408.
156	(7)  For purposes of this section, payment by a dealer is
157	deemed paid on the date that a draft or other valid payment
158	instrument is postmarked by the United States Postal Service,
159	date-stamped with a verifiable tracking number by a common
160	carrier, or delivered, if a postmark or verifiable tracking
161	number is not available.
162	(8)  This section does not apply to:
163	(a)  A claim for actual damages brought and certified as a
164	maintainable class action.
165	(b)  An action brought by the enforcing authority as
166	defined in s. 501.203.
167	(c)  An act or practice required or specifically authorized
168	by federal law or any provision of state law except chapter 501.
169	(d)  A claim for personal injury or death or a claim for
170	damage to tangible personal property other than the property
171	that is the subject of the customer transaction.
172	Section 3.  This act shall take effect upon becoming a law.

CODING: Words stricken are deletions; words underlined are additions.