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FL H0637

Bill

Status

Passed

6/16/2023

Primary Sponsor

Commerce Committee

Click for details

Origin

House of Representatives

2023 Regular Session

AI Summary

  • Prohibits motor vehicle manufacturers, distributors, and importers (and their parents, subsidiaries, common entities, officers, and agents) from directly or indirectly owning, operating, or controlling a motor vehicle dealership in Florida if they have any line-make sold under a franchise agreement in the state, with limited exceptions for temporary ownership during transitions (up to 1 year) or to promote dealer body diversity.

  • Prohibits manufacturers/licensees from reserving specific vehicles for named consumers, requiring dealers to sell to specific named persons, requiring dealers to sell at a specified price or profit margin, or using consumer preorders/reservations as a factor in vehicle allocation to dealers.

  • Allows manufacturers/licensees to sell or activate permanent or temporary vehicle features via remote electronic transmission (e.g., over-the-air updates), but requires payment of at least 8% of the gross sale amount to the franchised dealer that originally sold the vehicle new, if the sale occurred within the preceding 2 years and ownership has not changed; payment must be made within 60 days.

  • Expands the definition of "sell" and related terms to include activities such as accepting deposits, accepting reservations for specific VIN-identified vehicles, setting retail prices, negotiating purchase/lease terms with consumers, and negotiating trade-in values — broadening the scope of activities restricted to licensed dealers.

  • Requires the Department of Highway Safety and Motor Vehicles to conduct an inquiry within 30 days of receiving a written complaint from a franchised dealer or qualifying dealer association alleging licensee violations, allows the licensee up to 60 days to respond, and mandates the department take appropriate action (including license suspension/revocation, civil fines, or injunctive relief) if a violation is found. Effective July 1, 2023.

Legislative Description

Motor Vehicle Dealers, Manufacturers, Importers, and Distributors

Last Action

Chapter No. 2023-233

6/16/2023

Committee Referrals

Commerce Committee3/29/2023
Civil Justice Subcommittee2/23/2023
Regulatory Reform & Economic Development Subcommittee2/14/2023

Full Bill Text

No bill text available