Florida 2025 2025 Regular Session

Florida House Bill H0429 Comm Sub / Bill

Filed 03/17/2025

                       
 
CS/HB 429  	2025 
 
 
 
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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     
 
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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     
 
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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     
 
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 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     
 
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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