Florida Senate - 2017                                    SB 1664
       By Senator Braynon
       35-01330-17                                           20171664__
    1                        A bill to be entitled                      
    2         An act relating to vehicle recalls; amending s.
    3         320.64, F.S.; prohibiting a licensee from violating
    4         the Consumer Automotive Recall Safety Act and rules
    5         adopted pursuant to the act; amending s. 320.696,
    6         F.S.; requiring a licensee to compensate a motor
    7         vehicle dealer for certain recall repairs and costs
    8         directly associated with the disposal of certain
    9         hazardous materials; creating s. 320.92, F.S.;
   10         providing a short title; defining terms; prohibiting
   11         certain motor vehicle dealers or rental car companies
   12         to loan, rent, or offer for loan or rent a vehicle
   13         subject to recalls under certain circumstances;
   14         authorizing the motor vehicle dealer or rental car
   15         company, after completing certain temporary repairs,
   16         to loan or rent the vehicle under certain
   17         circumstances; requiring repairs to recalled vehicles
   18         once the remedy becomes available to the motor vehicle
   19         dealer or rental car company; requiring the Department
   20         of Highway Safety and Motor Vehicles to include a
   21         specified recall disclosure statement on each vehicle
   22         registration renewal notice; providing for
   23         construction; providing an effective date.
   25         WHEREAS, the Legislature recognizes that over the past 5
   26  years, automakers and the National Highway Traffic Safety
   27  Administration have issued more recalls on new and used motor
   28  vehicles than ever before, and
   29         WHEREAS, in 2014, more than 63.8 million vehicles were
   30  recalled, and
   31         WHEREAS, the rate of vehicle recalls has grown
   32  exponentially during the past 5 years as 51 million recalls were
   33  issued in 2015, 22 million recalls were issued in 2013, and 16.2
   34  million were issued in 2012, and
   35         WHEREAS, the number of recalls in 2014 is a 190 percent
   36  increase from 2013 and a 293.8 percent increase from 2012, and
   37         WHEREAS, while federal motor vehicle safety standards are
   38  more demanding now than ever before and new vehicles sold today
   39  are the safest in history, the exponential growth of recalls
   40  issued on motor vehicles has caused confusion and apathy for far
   41  too many motor vehicle owners, and
   42         WHEREAS, according to the National Highway Traffic Safety
   43  Administration and others, about one-third of all recalled
   44  vehicles are never repaired by their owners, and
   45         WHEREAS, federal regulations now require most vehicle
   46  manufacturers to provide motor vehicle safety recall information
   47  applicable to the vehicles they manufacture on the Internet and
   48  to the public, and
   49         WHEREAS, it is the intent of the Legislature to increase
   50  consumer awareness of recall notices on their cars and to ensure
   51  that the cars that consumers loan or rent that are subject to
   52  recalls have been repaired, and
   53         WHEREAS, the Legislature further recognizes that the
   54  distribution, sale, and service of new motor vehicles in the
   55  state vitally affects the state economy and the public welfare,
   56  and
   57         WHEREAS, the motor vehicle franchise system assures the
   58  consuming public of a well-organized distribution system for the
   59  availability and sale of new motor vehicles throughout the
   60  state, provides a network of quality warranty, recall, and
   61  repair facilities to maintain those vehicles, and creates a
   62  cost-effective method for the state to police those systems
   63  through the licensing and regulation of private sector
   64  franchisors and franchisees, and
   65         WHEREAS, state franchise laws require manufacturers to
   66  provide reasonable reimbursement to dealers for warranty and
   67  recall work, but fail to establish guidelines for compensating
   68  franchisee disposal costs associated with hazardous waste
   69  generated by repairs on recalled vehicles, and
   70         WHEREAS, it is the intent of the Legislature to ensure that
   71  motor vehicle dealer franchisees are treated fairly by their
   72  franchisors and that motor vehicle dealer franchisees are
   73  reasonably compensated for repairs on recalled vehicles, NOW,
   76  Be It Enacted by the Legislature of the State of Florida:
   78         Section 1. Subsection (41) is added to section 320.64,
   79  Florida Statutes, 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         (41) Violating the Consumer Automotive Recall Safety Act
   92  under s. 320.92 or any rule adopted pursuant to the act.
   94  A motor vehicle dealer who can demonstrate that a violation of,
   95  or failure to comply with, any of the preceding provisions by an
   96  applicant or licensee will or can adversely and pecuniarily
   97  affect the complaining dealer, shall be entitled to pursue all
   98  of the remedies, procedures, and rights of recovery available
   99  under ss. 320.695 and 320.697.
  100         Section 2. Paragraph (a) of subsection (1) of section
  101  320.696, Florida Statutes, is amended to read:
  102         320.696 Warranty responsibility.—
  103         (1)(a) A licensee shall timely compensate a motor vehicle
  104  dealer who performs work to:
  105         1. Maintain or repair a licensee’s product under a warranty
  106  or maintenance plan, extended warranty, certified pre-owned
  107  warranty, or a service contract, issued by the licensee or its
  108  common entity, unless issued by a common entity that is not a
  109  manufacturer; to
  110         2. Fulfill a licensee’s delivery or preparation procedures;
  111  or to
  112         3. Repair a motor vehicle as a result of a licensee’s or
  113  common entity’s recall, or a recall conducted pursuant to 49
  114  U.S.C. ss. 30118, 30119, and 30120, including any costs directly
  115  associated with the disposal of hazardous materials that are
  116  associated with a recall repair; or
  117         4. Repair a motor vehicle as a result of a licensee’s or
  118  common entity’s campaign service, authorized goodwill,
  119  directive, or bulletin.
  120         Section 3. Section 320.92, Florida Statutes, is created to
  121  read:
  122         320.92 Consumer Automotive Recall Safety Act.—
  123         (1) This section may be known and cited as the “Consumer
  124  Automotive Recall Safety Act.”
  125         (2) As used in this section, the term:
  126         (a)1. “Manufacturer’s recall” means a recall conducted
  127  pursuant to 49 U.S.C. ss. 30118, 30119, and 30120.
  128         2. A manufacturer’s recall does not include a service
  129  campaign or emission recall when the vehicle manufacturer or the
  130  National Highway Traffic Safety Administration has not issued a
  131  recall notice to owners of affected vehicles, pursuant to 49
  132  U.S.C. s. 30118.
  133         (b) “Motor vehicle dealer” has the same meaning as in s.
  134  320.27(1)(c).
  135         (c)1. “Recall database” means a database from which an
  136  individual may obtain, using a vehicle identification number
  137  (VIN), the specific manufacturer recall information relevant to
  138  a particular vehicle.
  139         2. For a vehicle manufacturer that is not subject to the
  140  regulations adopted pursuant to s. 31301 of the federal Moving
  141  Ahead for Progress in the 21st Century Act, Pub. L. No. 112-141,
  142  a recall database is one of the following:
  143         a. The recall data on a vehicle manufacturer’s website for
  144  a specific vehicle’s line-make.
  145         b. The recall data in a vehicle manufacturer’s internal
  146  system that provides information to its franchisees on vehicles
  147  subject to recall.
  148         c. The recall data in sub-subparagraph a. or sub
  149  subparagraph b. that is contained in a commercially available
  150  vehicle history system.
  151         3. For a vehicle manufacturer that is subject to the
  152  regulations adopted pursuant to s. 31301 of the federal Moving
  153  Ahead for Progress in the 21st Century Act, Pub. L. No. 112-141,
  154  a recall database must include, at a minimum, the recall
  155  information required pursuant to 49 C.F.R. s. 573.15.
  156         (d) “Recall database report” means a report, specific to a
  157  vehicle that is identified by its VIN, containing information
  158  obtained from a recall database.
  159         (e) “Rental car company” means a person or entity in the
  160  business of renting passenger vehicles to the public in this
  161  state.
  162         (3) No later than 48 hours after receiving a notice of a
  163  manufacturer’s recall, or sooner if practicable, a motor vehicle
  164  dealer or rental car company with a motor vehicle fleet of 34 or
  165  fewer loaner or rental vehicles may not loan, rent, or offer for
  166  loan or rent a vehicle subject to that recall until the recall
  167  repair has been made.
  168         (4) If a recall notification indicates that the remedy for
  169  the recall is not immediately available and specifies actions to
  170  temporarily repair the vehicle in a manner to eliminate the
  171  safety risk that prompted the recall, the motor vehicle dealer
  172  or rental car company, after having the repairs completed, may
  173  loan or rent the vehicle. Once the remedy for the vehicle
  174  becomes available to the motor vehicle dealer or rental car
  175  company, the motor vehicle dealer or rental car company may not
  176  loan or rent the vehicle until the vehicle has been repaired.
  177         (5) The department shall include the following recall
  178  disclosure statement on each vehicle registration renewal
  179  notice:
  188         (6) This section may not be construed to create any legal
  189  duty of the motor vehicle dealer, rental car company, or
  190  department related to the accuracy, errors, or omissions
  191  contained in a recall database report or any legal duty to
  192  provide information added to a recall database after the motor
  193  vehicle dealer, rental car company, or department obtained the
  194  recall database report pursuant to subsections (3), (4), and
  195  (5).
  196         (7) The rights and remedies provided by this section are
  197  cumulative and may not be construed as restricting any right or
  198  remedy that is otherwise available.
  199         Section 4. This act shall take effect July 1, 2017.