CS/HB 429 2025 CODING: Words stricken are deletions; words underlined are additions. hb429-01-c1 Page 1 of 5 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S A bill to be entitled 1 An act relating to motor vehicle manufacturers and 2 franchised motor vehicle dealers; amending s. 320.64, 3 F.S.; prohibiting an applicant or licensee, or common 4 entity thereof, from implementing sales or service 5 performance measurement criteria without providing 6 motor vehicle dealers with the basis for any sales or 7 service performance measurement; prohibiting an 8 applicant or licensee, or common entity thereof, fro m 9 engaging in certain retaliatory or discriminatory 10 conduct; amending s. 320.641, F.S.; revising 11 conditions under which a discontinuation, 12 cancellation, or nonrenewal of a franchise agreement 13 is considered unfair; providing an effective date. 14 15 Be It Enacted by the Legislature of the State of Florida: 16 17 Section 1. Subsection (42) of section 320.64, Florida 18 Statutes, is amended, and subsection (43) is added to that 19 section, to read: 20 320.64 Denial, suspension, or revocation of license; 21 grounds.—A license of a licensee under s. 320.61 may be denied, 22 suspended, or revoked within the entire state or at any specific 23 location or locations within the state at which the applicant or 24 licensee engages or proposes to engage in business, upon proof 25 CS/HB 429 2025 CODING: Words stricken are deletions; words underlined are additions. hb429-01-c1 Page 2 of 5 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S that the section was violated with sufficient frequency to 26 establish a pattern of wrongdoing, and a licensee or applicant 27 shall be liable for claims and remedies provided in ss. 320.695 28 and 320.697 for any violation of any of the following 29 provisions. A licensee is proh ibited from committing the 30 following acts: 31 (42)(a) The applicant or licensee , or common entity 32 thereof, has established, implemented, or enforced criteria for 33 measuring the sales or service performance of any of its 34 franchised motor vehicle dealers in th is state which have a 35 material or adverse effect on any motor vehicle dealer and 36 which: 37 1. Are unfair, unreasonable, arbitrary, or inequitable; or 38 2. Do not include all relevant and material local and 39 regional criteria, data, and facts. Relevant and ma terial 40 criteria, data, or facts include, but are not limited to, those 41 of motor vehicle dealerships of comparable size in comparable 42 markets. If such performance measurement criteria are based, in 43 whole or in part, on a survey, such survey must be based on a 44 statistically significant and valid random sample. 45 (b) The An applicant or, licensee, or common entity , or an 46 affiliate thereof, has implemented or enforced criteria for 47 measuring the sales or service performance of any of its 48 franchised motor vehicle dealers in this state without, before 49 implementation or enforcement, providing a written description 50 CS/HB 429 2025 CODING: Words stricken are deletions; words underlined are additions. hb429-01-c1 Page 3 of 5 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S to each such franchised which enforces against any motor vehicle 51 dealer any such performance measurement criteria shall, upon the 52 request of the motor veh icle dealer, describe in writing to the 53 motor vehicle dealer in this state providing , in detail, how the 54 performance measurement criteria were designed, calculated, 55 established, and uniformly applied. 56 (43) The applicant or licensee, or common entity ther eof, 57 has engaged in an action, or implemented a policy, standard, 58 rule, practice, or program, as retaliation against a franchised 59 motor vehicle dealer because the dealer invoked any right 60 pursuant to ss. 320.60 -320.70; asserted that the applicant or 61 licensee, or common entity thereof, acted in a manner that 62 violates any provision of ss. 320.60 -320.70; or testified, 63 assisted, or participated in any manner in an investigation, a 64 proceeding, or a hearing that may directly affect the applicant 65 or licensee, or common entity thereof. 66 67 A motor vehicle dealer who can demonstrate that a violation of, 68 or failure to comply with, any of the preceding provisions by an 69 applicant or licensee will or may adversely and pecuniarily 70 affect the complaining dealer, shall be enti tled to pursue all 71 of the remedies, procedures, and rights of recovery available 72 under ss. 320.695 and 320.697. 73 Section 2. Subsection (3) of section 320.641, Florida 74 Statutes, is amended to read: 75 CS/HB 429 2025 CODING: Words stricken are deletions; words underlined are additions. hb429-01-c1 Page 4 of 5 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 320.641 Discontinuations, cancellations, nonrenewals, 76 modifications, and replacement of franchise agreements. — 77 (3) Any motor vehicle dealer who receives a notice of 78 intent to discontinue, cancel, not renew, modify, or replace 79 may, within the 90-day notice period, file a petition or 80 complaint for a determina tion of whether such action is an 81 unfair or prohibited discontinuation, cancellation, nonrenewal, 82 modification, or replacement. Agreements and certificates of 83 appointment shall continue in effect until final determination 84 of the issues raised in such petit ion or complaint by the motor 85 vehicle dealer. 86 (a) A discontinuation, cancellation, or nonrenewal of a 87 franchise agreement is unfair unless all of the following apply: 88 1. if It is not clearly permitted by the franchise 89 agreement; 90 2. It is not undertaken in good faith ; 91 3. It is not undertaken for good cause ; 92 4. It or is based on the motor vehicle dealer's an alleged 93 breach of the franchise agreement which is not in fact a 94 material and substantial breach , but not if the discontinuation, 95 cancellation, or nonrenewal applies to all same line -make 96 franchised motor vehicle dealers and is otherwise permitted by 97 ss. 320.60-320.70; and 98 5. or, if The grounds relied upon for discontinuation 99 termination, cancellation, or nonrenewal have not been applied 100 CS/HB 429 2025 CODING: Words stricken are deletions; words underlined are additions. hb429-01-c1 Page 5 of 5 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S in a uniform and consistent manner by the licensee. 101 (b) If the notice of discontinuation, cancellation, or 102 nonrenewal relates to an alleged failure of the new motor 103 vehicle dealer's sales or service performance obligations under 104 the franchise agreement, the new motor vehicle dealer must first 105 be provided with at least 180 days to correct the alleged 106 failure before a licensee may send the notice of 107 discontinuation, cancellation, or nonrenewal. 108 (c) A modification or replacement is unfair unless all of 109 the following apply: 110 1. if It is not clearly permitted by the franchise 111 agreement; 112 2. It is not undertaken in good faith ; and 113 3. It or is not undertaken for good cause. 114 (d) The applicant or licensee shall have the burden of 115 proof that any such discontinuation, cancellation, nonrenewal, 116 modification, or replacement action is fair and not prohibited. 117 Section 3. This act shall take effect July 1, 2025. 118