STORAGE NAME: h0429c.CIV
DATE: 4/3/2025
1
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: CS/HB 429
TITLE: Motor Vehicle Manufacturers and Franchised
Motor Vehicle Dealers
SPONSOR(S): Yeager
COMPANION BILL: CS/SB 1820 (Leek)
LINKED BILLS: None
RELATED BILLS: None
Committee References
Industries & Professional
Activities
15 Y, 1 N, As CS
Civil Justice & Claims
12 Y, 0 N
Commerce
SUMMARY
Effect of the Bill:
The bill revises provisions of the Florida Motor Vehicle Dealership Act (Act), which governs the licensure of, and
contractual relationship between, motor vehicle dealers and motor vehicle manufacturers, distributors, importers,
and their common entities (licensees). Specifically, the bill revises provisions relating to a licensee’s use of criteria
for measuring a franchised motor vehicle dealer’s sales or service performance; prohibits licensees from engaging
in certain conduct as retaliation against a motor vehicle dealer for specified acts; and revises provisions governing
discontinuations, cancellations, non-renewals, modifications, and replacements of franchise agreements.
Fiscal or Economic Impact:
The bill may have a positive economic impact on franchised motor vehicle dealers in the state.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
The bill revises provisions of the Florida Automobile Dealership Act (Act) related to the licensure of, and
contractual agreements between, motor vehicle dealers and motor vehicle manufacturers, distributors, and
importers (applicants or licensees).
Measuring Sales or Service Performance
The bill adds a “common entity” to the list of persons prohibited from using criteria to measure the sales or service
performance of a franchised motor vehicle dealer which have a material or adverse effect on any motor vehicle
dealer and which:
Are unfair, unreasonable, arbitrary, or inequitable; or
Do not include all relevant and material local and regional criteria, data, and facts. (Section 1)
Further, under the bill, an applicant, licensee, or common entity thereof may not implement or enforce criteria for
measuring the sales or service performance of any of its franchised motor vehicle dealers in Florida without, before
implementation or enforcement, providing a written description to each such franchised motor vehicle dealer
providing, in detail, how the performance measurement criteria were designed, calculated, established and
uniformly applied. (Section 1)
Retaliatory Actions
The bill prohibits an applicant, licensee, or common entity thereof from engaging in any action, or implementing
any policy, standard, rule, practice, or program, as retaliation against a franchised motor vehicle dealer because the
dealer:
Invoked any right pursuant to the motor vehicle franchise law; JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
Asserted that the applicant, licensee, or common entity thereof acted in a manner that violates the motor
vehicle franchise law; or
Testified, assisted, or participated in any manner in an investigation, proceeding, or hearing that may
directly affect the applicant, licensee, or common entity thereof. (Section 1)
Discontinuing, Canceling, Nonrenewing, Modifying, or Replacing Franchise Agreements
The bill clarifies the conditions by which a discontinuation, cancellation, or non-renewal of a motor vehicle
franchise agreement may be determined to be unfair. Specifically, under the bill, such an action is unfair unless all
of the following apply:
It is clearly permitted by the franchise agreement;
It is undertaken in good faith;
It is undertaken for a good cause;
It is based on the motor vehicle dealer’s breach of the franchise agreement which is in fact a material and
substantial breach, but not if the action in question applies to all same line-make franchised motor vehicle
dealers and is otherwise permitted by law; and
The grounds relied upon for such an action have not been applied in a uniform and consistent manner by
the licensee. (Section 2)
Similarly, the bill clarifies the conditions by which a modification or replacement of a motor vehicle franchise
agreement may be determined to be unfair. Specifically, under the bill, such an action is unfair unless all of the
following apply:
It is clearly permitted by the franchise agreement;
It is undertaken in good faith; and
It is undertaken for good cause. (Section 2)
Effective Date
The effective date of the bill is July 1, 2025. (Section 3)
FISCAL OR ECONOMIC IMPACT:
PRIVATE SECTOR:
The bill may have a positive economic impact on franchised motor vehicle dealers in the state as it protects their
current business model.
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Florida Automobile Dealership Act
The Florida Automobile Dealership Act (Act),
1 governs the licensure of, and contractual relationship (franchise
agreements
2) between, motor vehicle manufacturers,
3 distributors,
4 and importers,
5 and provides substantial
1
Ch. 70-424, Laws of Fla., codified in ch. 320, F.S.
2
“Franchise agreement” means a contract, franchise, new motor vehicle franchise, sales and service agreement, or dealer
agreement or any other terminology used to describe the contractual relationship between a manufacturer, factory branch,
distributor, or importer, and a motor vehicle dealer, pursuant to which the motor vehicle dealer is authorized to transact
business pertaining to motor vehicles of a particular line-make. “Line-make vehicles,” in turn, means motor vehicles which are
offered for sale, lease, or distribution under a common name, trademark, service mark, or brand name of the manufacturer of
same (such as Ford, General Motors, or Honda). However, motor vehicles sold or leased under multiple brand names or marks
constitute a single line-make when they are included in a single franchise agreement, and every motor vehicle dealer in this
state authorized to sell or lease any such vehicles has been offered the right to sell or lease all of the multiple brand names or
marks covered by the single franchise agreement. S. 320.60(1) and (14), F.S.
3
“Motor vehicle manufacturer” means any person, whether a resident or non-resident of this state, who manufactures or
assembles motor vehicles or who manufactures or installs on previously assembled truck chassis special bodies or equipment
which, when installed, form an integral part of the motor vehicle and which constitute a major manufacturing alteration. This JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
protections for motor vehicle dealers.
6 The Division of Motor Vehicles (Division) within the Department of
Highway Safety and Motor Vehicles (DHSMV) administers and enforces the Act, which generally specifies:
Motor vehicle manufacturers, distributors, and importers (applicants or licensees) must be licensed under
the Act to engage in business in Florida, and the conditions and situations under which the DHSMV may
deny, suspend, or revoke such licenses;
The requirements for licensees wishing to discontinue, cancel, modify, or otherwise replace a franchise
agreement with a dealer, and the conditions under which the DHSMV may deny such a request;
The procedures licensees must follow to add a franchised dealership in an area already served by a
franchised dealer, the protest process, and the DHSMV’s role in such circumstances;
The damages assessable against a licensee who violates the Act; and
The DHSMV’s authority to adopt rules to implement the Act.
7
Common Entity
Under the Act, the term "common entity," refers to a person:
Who is directly or indirectly controlled by, or has more than 30 percent of its equity interest directly or
indirectly owned by, a manufacturer, importer, distributor, or licensee, or an affiliate thereof; or
Who has more than 30 percent of its equity interest directly or indirectly controlled or owned by one or
more persons who also directly or indirectly control or own more than 30 percent of the equity interests of
a manufacturer, an importer, a distributor, or a licensee, or an affiliate thereof.
8
Measuring Sales or Service Performance
The Act prohibits applicants or licensees from establishing, implementing, or enforcing criteria for measuring the
sales or service performance of any of their franchised motor vehicle dealers in this state which have a material or
adverse effect on any motor vehicle dealer and which are unfair, unreasonable, arbitrary, or inequitable, or do not
include all relevant and material local and regional criteria, data, and facts.
9 Under the Act, an applicant, licensee, or
common entity thereof which enforces against any motor vehicle dealer any sales or service performance
measurement criteria must, upon the request of the motor vehicle dealer, describe in a detailed writing to the
motor vehicle dealer how the criteria used were designed, calculated, established, and uniformly applied.
10
Discontinuing, Canceling, Nonrenewing, Modifying, or Replacing Franchise Agreements
Under the Act, an applicant or licensee must give written notice to the motor vehicle dealer and the DHSMV of the
licensee’s intention to discontinue, cancel, or fail to renew a franchise agreement, or of the licensee’s intention to
modify a franchise or replace a franchise with a succeeding franchise, which modification or replacement will
adversely alter a motor vehicle dealer’s rights or obligations under an existing franchise agreement or will
substantially impair the motor vehicle dealer’s sales, service obligations, or investment, at least 90 days before the
effective date of any such action.
11 The Act then authorizes a motor vehicle dealer who receives such a notice of
intent to discontinue, cancel, not renew, modify, or replace a franchise agreement to, within the 90-day notice
term includes a central or principal sales corporation or other entity through which, by contractual agreement or otherwise, it
distributes its products. S. 320.60(9), F.S.
4
“Distributor” means a person, resident or nonresident, who, in whole or in part, sells or distributes motor vehicles to motor
vehicle dealers or who maintains distributor representatives. S. 320.60(5), F.S.
5
“Importers” means a person who imports vehicles from a foreign country into the United States or into Florida for the
purpose of sale or lease. S. 320.60(7), F.S.
6
“Motor vehicle dealer” means any person, firm, company, corporation, or entity who holds a license under s. 32.27, F.S., as a
“franchised motor vehicle dealer” and, for commission, money, or other things of value, repairs or services motor vehicles
pursuant to a franchise agreement; sells, exchanges, buys, leases or rents, or offers, or attempts to negotiate a sale or exchange
of any interest in, motor vehicles; or is engaged wholly or in part in the business of selling motor vehicles, whether or not such
motor vehicles are owned by such person, firm, company, or corporation. Further, any person who repairs or services three or
more motor vehicles; buys, sells, or deals in three or more motor vehicles in any 12-month period; or offers or displays for sale
three or more motor vehicles is presumed to be a motor vehicle dealer, with exceptions. S. 32.60(11), F.S.
7
S. 320.011, F.S.; ss. 320.60-320.70, F.S.
8
S. 320.60(2)(a), F.S.
9
S. 320.64(42)(a), F.S.
10
Id.
11
S. 320.641(1), F.S. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
4
period, file a petition or complaint for a determination of whether such action is unfair or prohibited and gives the
applicant or licensee the burden of proof as to whether any such action is fair and not prohibited.
12
Under the act, a modification or replacement is unfair if it is not clearly permitted by the franchise agreement; is
not undertaken in good faith; or is not undertaken for good cause, while a discontinuation, cancellation, or non-
renewal is unfair if it is not:
Clearly permitted by the franchise agreement;
Undertaken in good faith;
Undertaken for good cause;
Based on a material and substantial breach of the franchise agreement; or
Based on grounds applied uniformly.
13
Further, the Act guarantees a new motor vehicle dealer at least 180 days to correct an alleged failure of the motor
vehicle dealer’s sales or service performance obligations under the applicable franchise agreement before an
applicant or licensee may send a notice of discontinuation, cancellation, or nonrenewal.
14
Complaints and Conduct of Inquiry
The act requires the DHSMV to conduct an inquiry of a licensee relating to any written complaint alleging a
violation of any provision of ss. 320.61-320.70, F.S., made by any of the following entities:
A motor vehicle dealer with a current franchise agreement issued by the licensee; or
A motor vehicle dealer association with at least one member with a current franchise agreement issued by
the licensee.
15
Such an inquiry must be commenced within 30 days after receipt of the written complaint, and the DHSMV may
allow the subject licensee no more than 60 days after the inquiry’s commencement to provide a written response.
Within 30 days after the written response deadline, the DHSMV must provide a written response to the
complainant stating whether the DHSMV intends to act against the licensee and, if so, what action it intends to take.
If, as a result of the inquiry, the DHSMV determines that a licensee has violated any provision of ss. 320.61-320.70,
F.S., the DHSMV must take appropriate action against the licensee, which may include:
License suspension or revocation;
Denial of a license renewal action;
Assessment, imposition, levy, and collection of an appropriate civil fine; or
Instituting a civil action for issuance of an injunction pursuant to s. 320.695, F.S.
Injunctions
Under the Act, the DHSMV, or any motor vehicle dealer in the name of the DHSMV and the state and for the use and
benefit of the motor vehicle dealer, may generally apply to any circuit court of the state for a temporary or
permanent injunction
16 restraining any person from doing the following:
17
Acting as a licensee under the Act without being properly licensed;
Violating or continuing to violate the Act; or
Failing or refusing to comply with the requirements of s. 320.695, F.S., or any rule or regulation adopted
thereunder.
The Act requires that such injunctions be issued without bond, and specifies that a single violation of the Act is
sufficient to authorize the issuance of an injunction.
18 However, this statutory remedy is not applicable to any
12
Id.
13
S. 320.641(3), F.S.
14
Id.
15
S. 320.67, F.S.
16
An “injunction” is a court order requiring a person to do or cease doing a specific action. Legal Information Institute,
Injunction, https://www.law.cornell.edu/wex/injunction (last visited Apr. 3, 2025).
17
S. 320.695, F.S.
18
Id. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
5
motor vehicle dealer after final determination by the DHSMV to discontinue, cancel, not renew, modify, or replace a
franchise agreement.
19
Administrative Hearings and Adjudications
A motor vehicle dealer, or a person with entitlements to or in a motor vehicle dealer, who is directly and adversely
affected by the actions or conduct of an applicant or licensee, which actions or conduct allegedly violate the Act,
may seek a declaration and adjudication of its rights by filing with the DHSMV either a:
20
Request for an administrative hearing under ch. 120, F.S.; or
Written objection or notice of protest as prescribed by the Act.
If a written objection or notice of protest is filed with the DHSMV, a hearing must occur no sooner than 180 days, or
later than 240 days, from the date of the filing of the first written objection or notice of protest, unless the time is
extended by the administrative law judge for good cause shown.
21
Motor Vehicle Dealer Association Standing
On May 3, 2022, the First District Court of Appeal affirmed a decision by the DHSMV that the Florida Automobile
Dealers Association (FADA) lacked standing to challenge a licensee’s alleged violations of the Act.
22 Specifically, the
court held that, even though FADA’s members are motor vehicle dealers, FADA lacked standing because:
It is not itself a motor vehicle dealer or other statutorily-authorized person or entity that may bring such a
challenge; and
Was not directly and negatively impacted by the licensee’s actions or conduct.
23
RECENT LEGISLATION:
YEAR BILL # HOUSE SPONSOR(S) SENATE SPONSOR OTHER INFORMATION
2023 CS/CS/HB 637 Shoaf Avila Became law on July 1, 2023.
BILL HISTORY
COMMITTEE REFERENCE ACTION DATE
STAFF
DIRECTOR/
POLICY CHIEF
ANALYSIS
PREPARED BY
Industries & Professional Activities
Subcommittee
15 Y, 1 N, As CS 3/12/2025 Anstead Thompson
THE CHANGES ADOPTED BY THE
COMMITTEE:
Revised provisions in the bill relating to sales and service performance
measurements.
Removed a provision from the bill giving standing to motor vehicle
dealer associations to bring specified lawsuits against licensees.
Clarified provisions in current law regarding discontinuations,
cancellations, non-renewals, modifications, and replacement of
franchise agreements.
Civil Justice & Claims
Subcommittee
12 Y, 0 N 4/3/2025 Jones Mawn
Commerce Committee
19
Id.
20
S. 320.699(1), F.S.
21
S. 320.699(2), F.S.
22
Fla. Auto. Dealers Ass'n v. Hyundai Motor Am. Corp., 337 So. 3d 893, 894 (Fla. 1st DCA 2022), reh'g denied (May 3, 2022).
23
Id. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
6
-------------------------------------------------------------------------------------------------------------------------------------
THIS BILL ANALYSIS HAS BEEN UPDATED TO INCORPORATE ALL OF THE CHANGES DESCRIBED ABOVE.
-------------------------------------------------------------------------------------------------------------------------------------