Florida Senate - 2017                                    SB 1678
       
       
        
       By Senator Garcia
       
       
       
       
       
       36-00976C-17                                          20171678__
    1                        A bill to be entitled                      
    2         An act relating to motor vehicle dealers; amending s.
    3         320.64, F.S.; providing an exception to the
    4         requirement that a specified provision does not affect
    5         certain contracts between a licensee and any of its
    6         dealers; providing that a motor vehicle dealer who
    7         completes certain approved construction or changes to
    8         or installation on the dealer’s facility in reliance
    9         upon a certain program, standard, or policy, or bonus,
   10         incentive, rebate, or other benefit is deemed to be in
   11         full compliance with all of an applicant’s or
   12         licensee’s requirements related to the facility, sign,
   13         and image for a specified period; providing that a
   14         motor vehicle dealer that completed a facility in
   15         reliance upon a prior program, standard, or policy,
   16         bonus, incentive, rebate or other benefit, but elects
   17         not to comply with the provisions related to facility,
   18         sign, or image under a changed or new program,
   19         standard, policy, or other offer is not eligible for
   20         the new benefits but shall remain entitled to all
   21         prior benefits plus any increase in the benefits
   22         between the prior and the new or amended program,
   23         standard, policy, or offers for the remainder of the
   24         specified period; providing for construction;
   25         prohibiting the applicant or licensee from failing to
   26         act in good faith toward or deal fairly with one of
   27         its franchised motor vehicle dealers in an agreement;
   28         specifying when an applicant or licensee may have
   29         failed to act in good faith or deal fairly with a
   30         motor vehicle dealer; requiring the Department of
   31         Highway Safety and Motor Vehicles or a court to
   32         consider, in certain actions, specified factors in
   33         determining whether an applicant or licensee has
   34         failed to act in good faith toward, or deal fairly
   35         with, a motor vehicle dealer under certain
   36         circumstances; providing that an affirmative
   37         determination to one or more of such factors is
   38         sufficient to sustain a finding of failure to act in
   39         good faith or deal fairly with a motor vehicle dealer;
   40         prohibiting an applicant or licensee from
   41         establishing, implementing, or enforcing criteria for
   42         measuring the sales or service performance of any of
   43         its franchised motor vehicle dealers in this state
   44         under certain circumstances; providing that relevant
   45         and material national or state criteria or data may be
   46         considered; prohibiting comparison to such data to
   47         outweigh applicable local and regional factors and
   48         data; defining the term “relevant and material”;
   49         requiring a survey to be based upon a statistically
   50         significant and valid random sample if certain
   51         measurement is based, in whole or in part, upon such
   52         survey; requiring an applicant, licensee, common
   53         entity, or affiliate thereof that seeks to establish,
   54         implement, or enforce against any dealer a performance
   55         measurement to describe in writing to the motor
   56         vehicle dealer, upon the dealer’s request, how the
   57         measurement criteria about the dealer’s sales and
   58         service performance was designed, calculated,
   59         established, and applied; providing that any dealer
   60         against whom any such performance measurement criteria
   61         is sought to be used for any purpose adverse to the
   62         dealer has the right to file a complaint in court
   63         alleging that such performance criteria does not
   64         comply with specified provisions; providing for
   65         damages, attorney fees, and injunctive relief under
   66         certain circumstances; requiring the applicant or
   67         licensee to bear the ultimate burden of proof that the
   68         dealer performance measurement criteria complies with
   69         specified provisions and has been implemented and
   70         enforced uniformly by the applicant or licensee among
   71         its dealers in this state; adding certain remedies,
   72         procedures, and rights of recovery a motor vehicle
   73         dealer is entitled to pursue under certain
   74         circumstances; creating s. 320.648, F.S.; prohibiting
   75         an applicant or licensee from taking specified actions
   76         for the purpose of avoiding competitive disadvantages
   77         of a motor vehicle dealer and eliminating
   78         discrimination against a motor vehicle dealer under
   79         certain circumstances; providing applicability;
   80         providing for construction; amending s. 320.699, F.S.;
   81         authorizing a motor vehicle dealer or certain persons
   82         to seek a declaration and adjudication of rights under
   83         certain circumstances with respect to certain actions
   84         of an applicant or licensee by filing a complaint in
   85         court for injunctive relief and damages; requiring,
   86         after a certain prima facie showing, the burden of
   87         proof of all issues to be upon the applicant or
   88         licensee to prove that a certain violation did not or
   89         will not occur; authorizing a court to issue
   90         injunctive relief and award costs and reasonable
   91         attorney fees to the complainant if relief is granted;
   92         providing an effective date.
   93          
   94  Be It Enacted by the Legislature of the State of Florida:
   95  
   96         Section 1. Section 320.64, Florida Statutes, is amended to
   97  read:
   98         320.64 Denial, suspension, or revocation of license;
   99  grounds.—A license of a licensee under s. 320.61 may be denied,
  100  suspended, or revoked within the entire state or at any specific
  101  location or locations within the state at which the applicant or
  102  licensee engages or proposes to engage in business, upon proof
  103  that the section was violated with sufficient frequency to
  104  establish a pattern of wrongdoing, and a licensee or applicant
  105  shall be liable for claims and remedies provided in ss. 320.695
  106  and 320.697 for any violation of any of the following
  107  provisions. A licensee is prohibited from committing the
  108  following acts:
  109         (1) The applicant or licensee is determined to be unable to
  110  carry out contractual obligations with its motor vehicle
  111  dealers.
  112         (2) The applicant or licensee has knowingly made a material
  113  misstatement in its application for a license.
  114         (3) The applicant or licensee willfully has failed to
  115  comply with significant provisions of ss. 320.60-320.70 or with
  116  any lawful rule or regulation adopted or promulgated by the
  117  department.
  118         (4) The applicant or licensee has indulged in any illegal
  119  act relating to his or her business.
  120         (5) The applicant or licensee has coerced or attempted to
  121  coerce any motor vehicle dealer into accepting delivery of any
  122  motor vehicle or vehicles or parts or accessories therefor or
  123  any other commodities which have not been ordered by the dealer.
  124         (6) The applicant or licensee has coerced or attempted to
  125  coerce any motor vehicle dealer to enter into any agreement with
  126  the licensee.
  127         (7) The applicant or licensee has threatened to
  128  discontinue, cancel, or not to renew a franchise agreement of a
  129  licensed motor vehicle dealer, where the threatened
  130  discontinuation, cancellation, or nonrenewal, if implemented,
  131  would be in violation of any of the provisions of s. 320.641.
  132         (8) The applicant or licensee discontinued, canceled, or
  133  failed to renew, a franchise agreement of a licensed motor
  134  vehicle dealer in violation of any of the provisions of s.
  135  320.641.
  136         (9) The applicant or licensee has threatened to modify or
  137  replace, or has modified or replaced, a franchise agreement with
  138  a succeeding franchise agreement which would adversely alter the
  139  rights or obligations of a motor vehicle dealer under an
  140  existing franchise agreement or which substantially impairs the
  141  sales, service obligations, or investment of the motor vehicle
  142  dealer.
  143         (10)(a) The applicant or licensee has attempted to enter,
  144  or has entered, into a franchise agreement with a motor vehicle
  145  dealer who does not, at the time of the franchise agreement,
  146  have proper facilities to provide the services to his or her
  147  purchasers of new motor vehicles which are covered by the new
  148  motor vehicle warranty issued by the applicant or licensee.
  149         (b) Notwithstanding any provision of a franchise, a
  150  licensee may not require a motor vehicle dealer, by agreement,
  151  program, policy, standard, or otherwise, to make substantial
  152  changes, alterations, or remodeling to, or to replace a motor
  153  vehicle dealer’s sales or service facilities unless the
  154  licensee’s requirements are reasonable and justifiable in light
  155  of the current and reasonably foreseeable projections of
  156  economic conditions, financial expectations, and the motor
  157  vehicle dealer’s market for the licensee’s motor vehicles.
  158         (c) A licensee may, however, consistent with the licensee’s
  159  allocation obligations at law and to its other same line-make
  160  motor vehicle dealers, provide to a motor vehicle dealer a
  161  commitment to supply additional vehicles or provide a loan or
  162  grant of money as an inducement for the motor vehicle dealer to
  163  expand, improve, remodel, alter, or renovate its facilities if
  164  the provisions of the commitment are contained in a writing
  165  voluntarily agreed to by the dealer and are made available, on
  166  substantially similar terms, to any of the licensee’s other same
  167  line-make dealers in this state who voluntarily agree to make a
  168  substantially similar facility expansion, improvement,
  169  remodeling, alteration, or renovation.
  170         (d) Except as provided in paragraph (c), subsection (36),
  171  or as otherwise provided by law, this subsection does not
  172  require a licensee to provide financial support for, or
  173  contribution to, the purchase or sale of the assets of or equity
  174  in a motor vehicle dealer or a relocation of a motor vehicle
  175  dealer because such support has been provided to other
  176  purchases, sales, or relocations.
  177         (e) A licensee or its common entity may not take or
  178  threaten to take any action that is unfair or adverse to a
  179  dealer who does not enter into an agreement with the licensee
  180  pursuant to paragraph (c).
  181         (f) Except as provided in s. 320.6992, this subsection does
  182  not affect any contract between a licensee and any of its
  183  dealers regarding relocation, expansion, improvement,
  184  remodeling, renovation, or alteration which exists on the
  185  effective date of this act.
  186         (g) A licensee may set and uniformly apply reasonable
  187  standards for a motor vehicle dealer’s sales and service
  188  facilities which are related to upkeep, repair, and cleanliness.
  189         (h) A violation of paragraphs (b) through (g) is not a
  190  violation of s. 320.70 and does not subject any licensee to any
  191  criminal penalty under s. 320.70.
  192         (i) If an applicant or licensee establishes a program,
  193  standard, or policy or in any manner offers a bonus, incentive,
  194  rebate, or other benefit to a motor vehicle dealer in this state
  195  which is premised, wholly or in part, on dealer facility
  196  construction, improvements, renovations, expansions, remodeling,
  197  or alterations or installation of signs or other image elements,
  198  a motor vehicle dealer who completes any such approved
  199  construction or change to or installation on the dealer’s
  200  facility in reliance upon such program, standard, or policy, or
  201  bonus, incentive, rebate, or other benefit is deemed to be in
  202  full compliance with all of the applicant’s or licensee’s
  203  requirements related to the facility, sign, and image for a
  204  period of 10 years following such completion. If, during the 10
  205  year period, the applicant or licensee changes or offers a new
  206  program, standard, or policy, or bonus, incentive, rebate, or
  207  other benefit related to relocation or remodeling, improvements,
  208  alterations, renovations, or replacement of the existing
  209  completed sales or service facilities, a motor vehicle dealer
  210  that completed a facility in reliance upon a prior program,
  211  standard, or policy, bonus, incentive, rebate, or other benefit,
  212  but elects not to comply with the provisions related to
  213  facility, sign, or image under the changed or new program,
  214  standard, policy, or other offer is not eligible for the new
  215  benefits but shall remain entitled to all prior benefits plus
  216  any increase in the benefits between the prior and the new or
  217  amended program, standard, policy, or offers for the remainder
  218  of the 10-year period. This paragraph does not obviate, affect,
  219  or alter any provision of subsection (38).
  220         (11) The applicant or licensee has coerced a motor vehicle
  221  dealer to provide installment financing for the motor vehicle
  222  dealer’s purchasers with a specified financial institution.
  223         (12) The applicant or licensee has advertised, printed,
  224  displayed, published, distributed, broadcast, or televised, or
  225  caused or permitted to be advertised, printed, displayed,
  226  published, distributed, broadcast, or televised, in any manner
  227  whatsoever, any statement or representation with regard to the
  228  sale or financing of motor vehicles which is false, deceptive,
  229  or misleading.
  230         (13) The applicant or licensee has sold, exchanged, or
  231  rented a motorcycle that which produces in excess of 5 brake
  232  horsepower, knowing the use thereof to be by, or intended for,
  233  the holder of a restricted Florida driver license.
  234         (14) The applicant or licensee has engaged in previous
  235  conduct that which would have been a ground for revocation or
  236  suspension of a license if the applicant or licensee had been
  237  licensed.
  238         (15) The applicant or licensee, directly or indirectly,
  239  through the actions of any parent of the licensee, subsidiary of
  240  the licensee, or common entity causes a termination,
  241  cancellation, or nonrenewal of a franchise agreement by a
  242  present or previous distributor or importer unless, by the
  243  effective date of such action, the applicant or licensee offers
  244  the motor vehicle dealer whose franchise agreement is
  245  terminated, canceled, or not renewed a franchise agreement
  246  containing substantially the same provisions contained in the
  247  previous franchise agreement or files an affidavit with the
  248  department acknowledging its undertaking to assume and fulfill
  249  the rights, duties, and obligations of its predecessor
  250  distributor or importer under the terminated, canceled, or
  251  nonrenewed franchise agreement and the same is reinstated.
  252         (16) Notwithstanding the terms of any franchise agreement,
  253  the applicant or licensee prevents or refuses to accept the
  254  succession to any interest in a franchise agreement by any legal
  255  heir or devisee under the will of a motor vehicle dealer or
  256  under the laws of descent and distribution of this state;
  257  provided, the applicant or licensee is not required to accept a
  258  succession where such heir or devisee does not meet licensee’s
  259  written, reasonable, and uniformly applied minimal standard
  260  qualifications for dealer applicants or which, after notice and
  261  administrative hearing pursuant to chapter 120, is demonstrated
  262  to be detrimental to the public interest or to the
  263  representation of the applicant or licensee. Nothing contained
  264  herein, however, shall prevent a motor vehicle dealer, during
  265  his or her lifetime, from designating any person as his or her
  266  successor in interest by written instrument filed with and
  267  accepted by the applicant or licensee. A licensee who rejects
  268  the successor transferee under this subsection shall have the
  269  burden of establishing in any proceeding where such rejection is
  270  in issue that the rejection of the successor transferee complies
  271  with this subsection.
  272         (17) The applicant or licensee has included in any
  273  franchise agreement with a motor vehicle dealer terms or
  274  provisions that are contrary to, prohibited by, or otherwise
  275  inconsistent with the provisions contained in ss. 320.60-320.70,
  276  or has failed to include in such franchise agreement a provision
  277  conforming to the requirements of s. 320.63(3).
  278         (18) The applicant or licensee has established a system of
  279  motor vehicle allocation or distribution or has implemented a
  280  system of allocation or distribution of motor vehicles to one or
  281  more of its franchised motor vehicle dealers which reduces or
  282  alters allocations or supplies of new motor vehicles to the
  283  dealer to achieve, directly or indirectly, a purpose that is
  284  prohibited by ss. 320.60-320.70, or which otherwise is unfair,
  285  inequitable, unreasonably discriminatory, or not supportable by
  286  reason and good cause after considering the equities of the
  287  affected motor vehicles dealer or dealers. An applicant or
  288  licensee shall maintain for 3 years records that describe its
  289  methods or formula of allocation and distribution of its motor
  290  vehicles and records of its actual allocation and distribution
  291  of motor vehicles to its motor vehicle dealers in this state. As
  292  used in this subsection, “unfair” includes, without limitation,
  293  the refusal or failure to offer to any dealer an equitable
  294  supply of new vehicles under its franchise, by model, mix, or
  295  colors as the licensee offers or allocates to its other same
  296  line-make dealers in the state.
  297         (19) The applicant or licensee, without good and fair
  298  cause, has delayed, refused, or failed to provide a supply of
  299  motor vehicles by series in reasonable quantities, including the
  300  models publicly advertised by the applicant or licensee as being
  301  available, or has delayed, refused, or failed to deliver motor
  302  vehicle parts and accessories within a reasonable time after
  303  receipt of an order by a franchised dealer. However, this
  304  subsection is not violated if such failure is caused by acts or
  305  causes beyond the control of the applicant or licensee.
  306         (20) The applicant or licensee has required, or threatened
  307  to require, a motor vehicle dealer to prospectively assent to a
  308  release, assignment, novation, waiver, or estoppel, which
  309  instrument or document operates, or is intended by the applicant
  310  or licensee to operate, to relieve any person from any liability
  311  or obligation under the provisions of ss. 320.60-320.70.
  312         (21) The applicant or licensee has threatened or coerced a
  313  motor vehicle dealer toward conduct or action whereby the dealer
  314  would waive or forego its right to protest the establishment or
  315  relocation of a motor vehicle dealer in the community or
  316  territory serviced by the threatened or coerced dealer.
  317         (22) The applicant or licensee has refused to deliver, in
  318  reasonable quantities and within a reasonable time, to any duly
  319  licensed motor vehicle dealer who has an agreement with such
  320  applicant or licensee for the retail sale of new motor vehicles
  321  and parts for motor vehicles sold or distributed by the
  322  applicant or licensee, any such motor vehicles or parts as are
  323  covered by such agreement. Such refusal includes the failure to
  324  offer to its same line-make franchised motor vehicle dealers all
  325  models manufactured for that line-make, or requiring a dealer to
  326  pay any extra fee, require a dealer to execute a separate
  327  franchise agreement, purchase unreasonable advertising displays
  328  or other materials, or relocate, expand, improve, remodel,
  329  renovate, recondition, or alter the dealer’s existing
  330  facilities, or provide exclusive facilities as a prerequisite to
  331  receiving a model or series of vehicles. However, the failure to
  332  deliver any motor vehicle or part will not be considered a
  333  violation of this section if the failure is due to an act of
  334  God, work stoppage, or delay due to a strike or labor
  335  difficulty, a freight embargo, product shortage, or other cause
  336  over which the applicant or licensee has no control. An
  337  applicant or licensee may impose reasonable requirements on the
  338  motor vehicle dealer, other than the items listed above,
  339  including, but not limited to, the purchase of special tools
  340  required to properly service a motor vehicle and the undertaking
  341  of sales person or service person training related to the motor
  342  vehicle.
  343         (23) The applicant or licensee has competed or is competing
  344  with respect to any activity covered by the franchise agreement
  345  with a motor vehicle dealer of the same line-make located in
  346  this state with whom the applicant or licensee has entered into
  347  a franchise agreement, except as permitted in s. 320.645.
  348         (24) The applicant or licensee has sold a motor vehicle to
  349  any retail consumer in the state except through a motor vehicle
  350  dealer holding a franchise agreement for the line-make that
  351  includes the motor vehicle. This section does not apply to sales
  352  by the applicant or licensee of motor vehicles to its current
  353  employees, employees of companies affiliated by common
  354  ownership, charitable not-for-profit-organizations, and the
  355  federal government.
  356         (25) The applicant or licensee has undertaken or engaged in
  357  an audit of warranty, maintenance, and other service-related
  358  payments or incentive payments, including payments to a motor
  359  vehicle dealer under any licensee-issued program, policy, or
  360  other benefit, which were previously paid to a motor vehicle
  361  dealer in violation of this section or has failed to comply with
  362  any of its obligations under s. 320.696. An applicant or
  363  licensee may reasonably and periodically audit a motor vehicle
  364  dealer to determine the validity of paid claims as provided in
  365  s. 320.696. Audits of warranty, maintenance, and other service
  366  related payments shall be performed by an applicant or licensee
  367  only during the 12-month period immediately following the date
  368  the claim was paid. Audits of incentive payments shall be
  369  performed only during the 12-month period immediately following
  370  the date the incentive was paid. As used in this section, the
  371  term “incentive” includes any bonus, incentive, or other
  372  monetary or nonmonetary consideration. After such time periods
  373  have elapsed, all warranty, maintenance, and other service
  374  related payments and incentive payments shall be deemed final
  375  and incontrovertible for any reason notwithstanding any
  376  otherwise applicable law, and the motor vehicle dealer shall not
  377  be subject to any chargeback or repayment. An applicant or
  378  licensee may deny a claim or, as a result of a timely conducted
  379  audit, impose a chargeback against a motor vehicle dealer for
  380  warranty, maintenance, or other service-related payments or
  381  incentive payments only if the applicant or licensee can show
  382  that the warranty, maintenance, or other service-related claim
  383  or incentive claim was false or fraudulent or that the motor
  384  vehicle dealer failed to substantially comply with the
  385  reasonable written and uniformly applied procedures of the
  386  applicant or licensee for such repairs or incentives, but only
  387  for that portion of the claim so shown. Notwithstanding the
  388  terms of any franchise agreement, guideline, program, policy, or
  389  procedure, an applicant or licensee may deny or charge back only
  390  that portion of a warranty, maintenance, or other service
  391  related claim or incentive claim which the applicant or licensee
  392  has proven to be false or fraudulent or for which the dealer
  393  failed to substantially comply with the reasonable written and
  394  uniformly applied procedures of the applicant or licensee for
  395  such repairs or incentives, as set forth in this subsection. An
  396  applicant or licensee may not charge back a motor vehicle dealer
  397  subsequent to the payment of a warranty, maintenance, or
  398  service-related claim or incentive claim unless, within 30 days
  399  after a timely conducted audit, a representative of the
  400  applicant or licensee first meets in person, by telephone, or by
  401  video teleconference with an officer or employee of the dealer
  402  designated by the motor vehicle dealer. At such meeting the
  403  applicant or licensee must provide a detailed explanation, with
  404  supporting documentation, as to the basis for each of the claims
  405  for which the applicant or licensee proposed a chargeback to the
  406  dealer and a written statement containing the basis upon which
  407  the motor vehicle dealer was selected for audit or review.
  408  Thereafter, the applicant or licensee must provide the motor
  409  vehicle dealer’s representative a reasonable period after the
  410  meeting within which to respond to the proposed chargebacks,
  411  with such period to be commensurate with the volume of claims
  412  under consideration, but in no case less than 45 days after the
  413  meeting. The applicant or licensee is prohibited from changing
  414  or altering the basis for each of the proposed chargebacks as
  415  presented to the motor vehicle dealer’s representative following
  416  the conclusion of the audit unless the applicant or licensee
  417  receives new information affecting the basis for one or more
  418  chargebacks and that new information is received within 30 days
  419  after the conclusion of the timely conducted audit. If the
  420  applicant or licensee claims the existence of new information,
  421  the dealer must be given the same right to a meeting and right
  422  to respond as when the chargeback was originally presented.
  423  After all internal dispute resolution processes provided through
  424  the applicant or licensee have been completed, the applicant or
  425  licensee shall give written notice to the motor vehicle dealer
  426  of the final amount of its proposed chargeback. If the dealer
  427  disputes that amount, the dealer may file a protest with the
  428  department within 30 days after receipt of the notice. If a
  429  protest is timely filed, the department shall notify the
  430  applicant or licensee of the filing of the protest, and the
  431  applicant or licensee may not take any action to recover the
  432  amount of the proposed chargeback until the department renders a
  433  final determination, which is not subject to further appeal,
  434  that the chargeback is in compliance with the provisions of this
  435  section. In any hearing pursuant to this subsection, the
  436  applicant or licensee has the burden of proof that its audit and
  437  resulting chargeback are in compliance with this subsection.
  438         (26) Notwithstanding the terms of any franchise agreement,
  439  including any licensee’s program, policy, or procedure, the
  440  applicant or licensee has refused to allocate, sell, or deliver
  441  motor vehicles; charged back or withheld payments or other
  442  things of value for which the dealer is otherwise eligible under
  443  a sales promotion, program, or contest; prevented a motor
  444  vehicle dealer from participating in any promotion, program, or
  445  contest; or has taken or threatened to take any adverse action
  446  against a dealer, including chargebacks, reducing vehicle
  447  allocations, or terminating or threatening to terminate a
  448  franchise because the dealer sold or leased a motor vehicle to a
  449  customer who exported the vehicle to a foreign country or who
  450  resold the vehicle, unless the licensee proves that the dealer
  451  knew or reasonably should have known that the customer intended
  452  to export or resell the motor vehicle. There is a rebuttable
  453  presumption that the dealer neither knew nor reasonably should
  454  have known of its customer’s intent to export or resell the
  455  vehicle if the vehicle is titled or registered in any state in
  456  this country. A licensee may not take any action against a motor
  457  vehicle dealer, including reducing its allocations or supply of
  458  motor vehicles to the dealer or charging back to a dealer any
  459  incentive payment previously paid, unless the licensee first
  460  meets in person, by telephone, or video conference with an
  461  officer or other designated employee of the dealer. At such
  462  meeting, the licensee must provide a detailed explanation, with
  463  supporting documentation, as to the basis for its claim that the
  464  dealer knew or reasonably should have known of the customer’s
  465  intent to export or resell the motor vehicle. Thereafter, the
  466  motor vehicle dealer shall have a reasonable period,
  467  commensurate with the number of motor vehicles at issue, but not
  468  less than 15 days, to respond to the licensee’s claims. If,
  469  following the dealer’s response and completion of all internal
  470  dispute resolution processes provided through the applicant or
  471  licensee, the dispute remains unresolved, the dealer may file a
  472  protest with the department within 30 days after receipt of a
  473  written notice from the licensee that it still intends to take
  474  adverse action against the dealer with respect to the motor
  475  vehicles still at issue. If a protest is timely filed, the
  476  department shall notify the applicant or licensee of the filing
  477  of the protest, and the applicant or licensee may not take any
  478  action adverse to the dealer until the department renders a
  479  final determination, which is not subject to further appeal,
  480  that the licensee’s proposed action is in compliance with the
  481  provisions of this subsection. In any hearing pursuant to this
  482  subsection, the applicant or licensee has the burden of proof on
  483  all issues raised by this subsection. An applicant or licensee
  484  may not take any adverse action against a motor vehicle dealer
  485  because the dealer sold or leased a motor vehicle to a customer
  486  who exported the vehicle to a foreign country or who resold the
  487  vehicle unless the applicant or licensee provides written
  488  notification to the motor vehicle dealer of such resale or
  489  export within 12 months after the date the dealer sold or leased
  490  the vehicle to the customer.
  491         (27) Notwithstanding the terms of any franchise agreement,
  492  the applicant or licensee has failed or refused to indemnify and
  493  hold harmless any motor vehicle dealer against any judgment for
  494  damages, or settlements agreed to by the applicant or licensee,
  495  including, without limitation, court costs and reasonable
  496  attorney attorneys fees, arising out of complaints, claims, or
  497  lawsuits, including, without limitation, strict liability,
  498  negligence, misrepresentation, express or implied warranty, or
  499  revocation or rescission of acceptance of the sale of a motor
  500  vehicle, to the extent the judgment or settlement relates to the
  501  alleged negligent manufacture, design, or assembly of motor
  502  vehicles, parts, or accessories. Nothing herein shall obviate
  503  the licensee’s obligations pursuant to chapter 681.
  504         (28) The applicant or licensee has published, disclosed, or
  505  otherwise made available in any form information provided by a
  506  motor vehicle dealer with respect to sales prices of motor
  507  vehicles or profit per motor vehicle sold. Other confidential
  508  financial information provided by motor vehicle dealers shall
  509  not be published, disclosed, or otherwise made publicly
  510  available except in composite form. However, this information
  511  may be disclosed with the written consent of the dealer or in
  512  response to a subpoena or order of the department, a court or a
  513  lawful tribunal, or introduced into evidence in such a
  514  proceeding, after timely notice to an affected dealer.
  515         (29) The applicant or licensee has failed to reimburse a
  516  motor vehicle dealer in full for the reasonable cost of
  517  providing a loaner vehicle to any customer who is having a
  518  vehicle serviced at the motor vehicle dealer, if a loaner is
  519  required by the applicant or licensee, or a loaner is expressly
  520  part of an applicant or licensee’s customer satisfaction index
  521  or computation.
  522         (30) The applicant or licensee has conducted or threatened
  523  to conduct any audit of a motor vehicle dealer in order to
  524  coerce or attempt to coerce the dealer to forego any rights
  525  granted to the dealer under ss. 320.60-320.70 or under the
  526  agreement between the licensee and the motor vehicle dealer.
  527  Nothing in this section shall prohibit an applicant or licensee
  528  from reasonably and periodically auditing a dealer to determine
  529  the validity of paid claims, as permitted under this chapter, if
  530  the licensee complies with the provisions of ss. 320.60-320.70
  531  applicable to such audits.
  532         (31) From and after the effective date of enactment of this
  533  provision, the applicant or licensee has offered to any motor
  534  vehicle dealer a franchise agreement that:
  535         (a) Requires that a motor vehicle dealer bring an
  536  administrative or legal action in a venue outside of this state;
  537         (b) Requires that any arbitration, mediation, or other
  538  legal proceeding be conducted outside of this state; or
  539         (c) Requires that a law of a state other than Florida be
  540  applied to any legal proceeding between a motor vehicle dealer
  541  and a licensee.
  542         (32) Notwithstanding the terms of any franchise agreement,
  543  the applicant or licensee has rejected or withheld approval of
  544  any proposed transfer in violation of s. 320.643 or a proposed
  545  change of executive management in violation of s. 320.644.
  546         (33) The applicant or licensee has attempted to sell or
  547  lease, or has sold or leased, used motor vehicles at retail of a
  548  line-make that is the subject of any franchise agreement with a
  549  motor vehicle dealer in this state, other than trucks with a net
  550  weight of more than 8,000 pounds.
  551         (34) The applicant or licensee, after the effective date of
  552  this subsection, has included in any franchise agreement with a
  553  motor vehicle dealer a mandatory obligation or requirement of
  554  the motor vehicle dealer to purchase, sell, or lease, or offer
  555  for purchase, sale, or lease, any quantity of used motor
  556  vehicles.
  557         (35) The applicant or licensee has refused to assign
  558  allocation earned by a motor vehicle dealer, or has refused to
  559  sell motor vehicles to a motor vehicle dealer, because the motor
  560  vehicle dealer has failed or refused to purchase, sell, lease,
  561  or certify a certain quantity of used motor vehicles prescribed
  562  by the licensee.
  563         (36)(a) Notwithstanding the terms of any franchise
  564  agreement, in addition to any other statutory or contractual
  565  rights of recovery after the voluntary or involuntary
  566  termination, cancellation, or nonrenewal of a franchise, failing
  567  to pay the motor vehicle dealer, as provided in paragraph (d),
  568  the following amounts:
  569         1. The net cost paid by the dealer for each new car or
  570  truck in the dealer’s inventory with mileage of 2,000 miles or
  571  less, or a motorcycle with mileage of 100 miles or less,
  572  exclusive of mileage placed on the vehicle before it was
  573  delivered to the dealer.
  574         2. The current price charged for each new, unused,
  575  undamaged, or unsold part or accessory that:
  576         a. Is in the current parts catalogue and is still in the
  577  original, resalable merchandising package and in an unbroken
  578  lot, except that sheet metal may be in a comparable substitute
  579  for the original package; and
  580         b. Was purchased by the dealer directly from the
  581  manufacturer or distributor or from an outgoing authorized
  582  dealer as a part of the dealer’s initial inventory.
  583         3. The fair market value of each undamaged sign owned by
  584  the dealer which bears a trademark or trade name used or claimed
  585  by the applicant or licensee or its representative which was
  586  purchased from or at the request of the applicant or licensee or
  587  its representative.
  588         4. The fair market value of all special tools, data
  589  processing equipment, and automotive service equipment owned by
  590  the dealer which:
  591         a. Were recommended in writing by the applicant or licensee
  592  or its representative and designated as special tools and
  593  equipment;
  594         b. Were purchased from or at the request of the applicant
  595  or licensee or its representative; and
  596         c. Are in usable and good condition except for reasonable
  597  wear and tear.
  598         5. The cost of transporting, handling, packing, storing,
  599  and loading any property subject to repurchase under this
  600  section.
  601         (b) If the termination, cancellation, or nonrenewal of the
  602  dealer’s franchise is the result of the bankruptcy or
  603  reorganization of a licensee or its common entity, or the result
  604  of a licensee’s plan, scheme, or policy, whether or not publicly
  605  declared, which is intended to or has the effect of decreasing
  606  the number of, or eliminating, the licensee’s franchised motor
  607  vehicle dealers of a line-make in this state, or the result of a
  608  termination, elimination, or cessation of manufacture or
  609  reorganization of a licensee or its common entity, or the result
  610  of a termination, elimination, or cessation of manufacture or
  611  distribution of a line-make, in addition to the above payments
  612  to the dealer, the licensee or its common entity, shall be
  613  liable to and shall pay the motor vehicle dealer for an amount
  614  at least equal to the fair market value of the franchise for the
  615  line-make, which shall be the greater of the value determined as
  616  of the day the licensee announces the action that results in the
  617  termination, cancellation, or nonrenewal, or the value
  618  determined on the day that is 12 months before that date. Fair
  619  market value of the franchise for the line-make includes only
  620  the goodwill value of the dealer’s franchise for that line-make
  621  in the dealer’s community or territory.
  622         (c) This subsection does not apply to a termination,
  623  cancellation, or nonrenewal that is implemented as a result of
  624  the sale of the assets or corporate stock or other ownership
  625  interests of the dealer.
  626         (d) The dealer shall return the property listed in this
  627  subsection to the licensee within 90 days after the effective
  628  date of the termination, cancellation, or nonrenewal. The
  629  licensee shall supply the dealer with reasonable instructions
  630  regarding the method by which the dealer must return the
  631  property. Absent shipping instructions and prepayment of
  632  shipping costs from the licensee or its common entity, the
  633  dealer shall tender the inventory and other items to be returned
  634  at the dealer’s facility. The compensation for the property
  635  shall be paid by the licensee or its common entity
  636  simultaneously with the tender of inventory and other items,
  637  provided that, if the dealer does not have clear title to the
  638  inventory and other items and is not in a position to convey
  639  that title to the licensee, payment for the property being
  640  returned may be made jointly to the dealer and the holder of any
  641  security interest.
  642         (37) Notwithstanding the terms of any franchise agreement,
  643  the applicant or licensee has refused to allow or has limited or
  644  restricted a motor vehicle dealer from acquiring or adding a
  645  sales or service operation for another line-make of motor
  646  vehicles at the same or expanded facility at which the motor
  647  vehicle dealer currently operates a dealership unless the
  648  applicant or licensee can demonstrate that such refusal,
  649  limitation, or restriction is justified by consideration of
  650  reasonable facility and financial requirements and the dealer’s
  651  performance for the existing line-make.
  652         (38) The applicant or licensee has failed or refused to
  653  offer a bonus, incentive, or other benefit program, in whole or
  654  in part, to a dealer or dealers in this state which it offers to
  655  all of its other same line-make dealers nationally or to all of
  656  its other same line-make dealers in the licensee’s designated
  657  zone, region, or other licensee-designated area of which this
  658  state is a part, unless the failure or refusal to offer the
  659  program in this state is reasonably supported by substantially
  660  different economic or marketing considerations than are
  661  applicable to the licensee’s same line-make dealers in this
  662  state. For purposes of this chapter, a licensee may not
  663  establish this state alone as a designated zone, region, or area
  664  or any other designation for a specified territory. A licensee
  665  may offer a bonus, rebate, incentive, or other benefit program
  666  to its dealers in this state which is calculated or paid on a
  667  per vehicle basis and is related in part to a dealer’s facility
  668  or the expansion, improvement, remodeling, alteration, or
  669  renovation of a dealer’s facility. Any dealer who does not
  670  comply with the facility criteria or eligibility requirements of
  671  such program is entitled to receive a reasonable percentage of
  672  the bonus, incentive, rebate, or other benefit offered by the
  673  licensee under that program by complying with the criteria or
  674  eligibility requirements unrelated to the dealer’s facility
  675  under that program. For purposes of the previous sentence, the
  676  percentage unrelated to the facility criteria or requirements is
  677  presumed to be “reasonable” if it is not less than 80 percent of
  678  the total of the per vehicle bonus, incentive, rebate, or other
  679  benefits offered under the program.
  680         (39) Notwithstanding any agreement, program, incentive,
  681  bonus, policy, or rule, an applicant or licensee may not fail to
  682  make any payment pursuant to any agreement, program, incentive,
  683  bonus, policy, or rule for any temporary replacement motor
  684  vehicle loaned, rented, or provided by a motor vehicle dealer to
  685  or for its service or repair customers, even if the temporary
  686  replacement motor vehicle has been leased, rented, titled, or
  687  registered to the motor vehicle dealer’s rental or leasing
  688  division or an entity that is owned or controlled by the motor
  689  vehicle dealer, provided that the motor vehicle dealer or its
  690  rental or leasing division or entity complies with the written
  691  and uniformly enforced vehicle eligibility, use, and reporting
  692  requirements specified by the applicant or licensee in its
  693  agreement, program, policy, bonus, incentive, or rule relating
  694  to loaner vehicles.
  695         (40) Notwithstanding the terms of any franchise agreement,
  696  the applicant or licensee may not require or coerce, or attempt
  697  to require or coerce, a motor vehicle dealer to purchase goods
  698  or services from a vendor selected, identified, or designated by
  699  the applicant or licensee, or one of its parents, subsidiaries,
  700  divisions, or affiliates, by agreement, standard, policy,
  701  program, incentive provision, or otherwise, without making
  702  available to the motor vehicle dealer the option to obtain the
  703  goods or services of substantially similar design and quality
  704  from a vendor chosen by the motor vehicle dealer. If the motor
  705  vehicle dealer exercises such option, the dealer must provide
  706  written notice of its desire to use the alternative goods or
  707  services to the applicant or licensee, along with samples or
  708  clear descriptions of the alternative goods or services that the
  709  dealer desires to use. The licensee or applicant shall have the
  710  opportunity to evaluate the alternative goods or services for up
  711  to 30 days to determine whether it will provide a written
  712  approval to the motor vehicle dealer to use said alternative
  713  goods or services. Approval may not be unreasonably withheld by
  714  the applicant or licensee. If the motor vehicle dealer does not
  715  receive a response from the applicant or licensee within 30
  716  days, approval to use the alternative goods or services is
  717  deemed granted. If a dealer using alternative goods or services
  718  complies with this subsection and has received approval from the
  719  licensee or applicant, the dealer is not ineligible for all
  720  benefits described in the agreement, standard, policy, program,
  721  incentive provision, or otherwise solely for having used such
  722  alternative goods or services. As used in this subsection, the
  723  term “goods or services” is limited to such goods and services
  724  used to construct or renovate dealership facilities or furniture
  725  and fixtures at the dealership facilities. The term does not
  726  include:
  727         (a) Any materials subject to the applicant’s or licensee’s
  728  intellectual property rights, including copyright, trademark, or
  729  trade dress rights;
  730         (b) Any special tool and training as required by the
  731  applicant or licensee;
  732         (c) Any part to be used in repairs under warranty
  733  obligations of an applicant or licensee;
  734         (d) Any good or service paid for entirely by the applicant
  735  or licensee; or
  736         (e) Any applicant’s or licensee’s design or architectural
  737  review service.
  738         (41)(a) The applicant or licensee has failed to act in good
  739  faith toward or to deal fairly with one of its franchised motor
  740  vehicle dealers regarding the terms or provisions of an
  741  agreement. For purposes of this subsection, an applicant or
  742  licensee may have failed to act in good faith toward or deal
  743  fairly with a motor vehicle dealer even in the absence of any
  744  act or threat of coercion or intimidation made by the applicant
  745  or licensee toward the motor vehicle dealer or even in the
  746  absence of an allegation by the motor vehicle dealer that an
  747  express term or provision of a franchise agreement has been
  748  breached or violated by the applicant or licensee. In any action
  749  brought under this subsection, the department or a court of
  750  competent jurisdiction shall consider all of the following
  751  factors, among others, in determining whether an applicant or
  752  licensee has failed to act in good faith toward or deal fairly
  753  with a motor vehicle dealer regarding the terms or provisions of
  754  any agreement or in any of its dealings with a motor vehicle
  755  dealer or in compliance with this subsection:
  756         1. Whether the applicant or licensee has fairly taken into
  757  account the motor vehicle dealer’s investment in its facilities,
  758  its sales or service or parts promotions, its staffing, and its
  759  general operations.
  760         2. Whether the applicant or licensee has altered the rights
  761  of the motor vehicle dealer or the dealer’s independence in
  762  operating the dealership.
  763         3. Whether the applicant or licensee has altered the sales
  764  or service obligations of the motor vehicle dealer or adversely
  765  impaired the investment or the financial return of the motor
  766  vehicle dealer in any part of the motor vehicle dealer’s sales,
  767  service, or parts operations.
  768         4. Whether the applicant or licensee has fairly taken into
  769  account the equities and interests of the motor vehicle dealer.
  770         (b) An affirmative determination regarding one or more of
  771  the factors under paragraph (a) is sufficient to sustain a
  772  finding of failure to act in good faith toward or deal fairly
  773  with a motor vehicle dealer.
  774         (42)(a) An applicant or licensee may not establish,
  775  implement, or enforce criteria for measuring the sales or
  776  service performance of any of its franchised motor vehicle
  777  dealers in this state which may have a negative material or
  778  adverse effect on any dealer; which is unfair, unreasonable,
  779  arbitrary, or inequitable; or which does not include all
  780  applicable local and regional criteria, data, and facts.
  781  Relevant and material national or state criteria or data may be
  782  considered, but comparison to such data may not outweigh the
  783  local and regional factors and data. The term “relevant and
  784  material” includes, but is not limited to, comparable size
  785  dealerships in comparable markets with comparable buyer
  786  profiles. If such measurement is based, in whole or in part,
  787  upon a survey, the survey must be based upon a statistically
  788  significant and valid random sample. Upon the request of any
  789  dealer, applicant, licensee, common entity, or affiliate thereof
  790  that seeks to establish, implement, or enforce against any
  791  dealer any such performance measurement must promptly describe
  792  in writing to the motor vehicle dealer, in detail, how the
  793  measurement criteria for the dealer’s sales and service
  794  performance was designed, calculated, established, and applied.
  795         (b) Any dealer, against whom any such performance
  796  measurement criteria are sought to be used for any purpose
  797  adverse to the dealer, has the right to file a complaint in any
  798  court of competent jurisdiction alleging that such performance
  799  criteria does not comply with this subsection and, if
  800  successful, shall be entitled to damages pursuant to s. 320.697,
  801  plus attorney fees and injunctive relief. The court is
  802  authorized to issue temporary, preliminary, and permanent
  803  injunctive relief without regard to the existence of an adequate
  804  remedy at law or irreparable harm and without requiring a bond
  805  of any complainant.
  806         (c) In any proceeding under this subsection, the applicant
  807  or licensee shall bear the ultimate burden of proof that the
  808  dealer performance measurement criteria complies with this
  809  subsection and has been implemented and enforced uniformly by
  810  the applicant or licensee among its dealers in this state.
  811  
  812  A motor vehicle dealer who can demonstrate that a violation of,
  813  or failure to comply with, this section any of the preceding
  814  provisions by an applicant or licensee will or can adversely and
  815  pecuniarily affect the complaining dealer, shall be entitled to
  816  pursue all of the remedies, procedures, and rights of recovery
  817  available under ss. 320.695, and 320.697, and 320.699.
  818         Section 2. Section 320.648, Florida Statutes, is created to
  819  read:
  820         320.648 Discriminatory practices; prohibitions.—
  821         (1) For the purpose of avoiding competitive disadvantages
  822  of a motor vehicle dealer in this state by reason of differences
  823  in dealer cost of any motor vehicle and for the purpose of
  824  eliminating discrimination by an applicant or licensee against
  825  any motor vehicle dealer in this state, an applicant or licensee
  826  is prohibited from:
  827         (a) Selling or offering to sell a new motor vehicle to a
  828  motor vehicle dealer at a lower actual, effective cost,
  829  including the cost of the vehicle transportation, than the
  830  actual, effective cost that the same model similarly equipped is
  831  offered to or is available to another same line-make motor
  832  dealer in this state during a similar period.
  833         (b) Discriminating between its same-line make dealers in
  834  this state by the use of a promotional, incentive, or bonus
  835  plan, program, device, benefit, or otherwise, whether received
  836  by the motor vehicle dealer at the time of sale of the new motor
  837  vehicle to the dealer or later, which results in a lower cost,
  838  including the cost of the vehicle transportation, than the
  839  actual, effective cost that the same model similarly equipped is
  840  offered or is available to another same line-make model motor
  841  vehicle dealer in this state during a similar period.
  842         (2) Subsection (1) does not prohibit a licensee’s or
  843  applicant’s offer of a promotion, bonus, or incentive which in
  844  effect does not discriminate against, and is functionally
  845  available to, all competing dealers of the same line-make in
  846  this state on substantially comparable terms, provided that it
  847  contains fair and reasonably achievable sales or service
  848  objectives.
  849         (3) Subsection (1) does not obviate, affect, alter, or
  850  diminish s. 320.64(38).
  851         Section 3. Section 320.699, Florida Statutes, is amended to
  852  read:
  853         320.699 Administrative Hearings and adjudications;
  854  procedure.—
  855         (1) A motor vehicle dealer, or person with entitlements to
  856  or in a motor vehicle dealer, who is directly and adversely
  857  affected by the action or conduct of an applicant or licensee
  858  which is alleged to be in violation of any provision of ss.
  859  320.60-320.70, may seek a declaration and adjudication of its
  860  rights with respect to the alleged action or conduct of the
  861  applicant or licensee by:
  862         (a) Filing with the department a request for a proceeding
  863  and an administrative hearing which conforms substantially with
  864  the requirements of ss. 120.569 and 120.57; or
  865         (b) Filing with the department a written objection or
  866  notice of protest pursuant to s. 320.642; or
  867         (c) As an alternative, filing a complaint in any court of
  868  competent jurisdiction to seek temporary, preliminary, or
  869  permanent injunctive relief and civil damages pursuant to s.
  870  320.697. Upon a prima facie showing by a complainant that such
  871  violation has occurred, or may occur, the burden of proof of all
  872  issues must then be upon the applicant or licensee to prove that
  873  such violation did not or will not occur. In any such
  874  proceeding, a court may issue injunctive relief without regard
  875  to the existence of an adequate remedy at law or irreparable
  876  harm and without requiring any bond and may award costs and
  877  reasonable attorney fees to the complainant if relief is
  878  granted.
  879         (2) If a written objection or notice of protest is filed
  880  with the department under paragraph (1)(b), a hearing shall be
  881  held not sooner than 180 days nor later than 240 days from the
  882  date of filing of the first objection or notice of protest,
  883  unless the time is extended by the administrative law judge for
  884  good cause shown. This subsection shall govern the schedule of
  885  hearings in lieu of any other provision of law with respect to
  886  administrative hearings conducted by the Department of Highway
  887  Safety and Motor Vehicles or the Division of Administrative
  888  Hearings, including performance standards of state agencies,
  889  which may be included in current and future appropriations acts.
  890         Section 4. This act shall take effect upon becoming a law.