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FL S1820

FL S1820
Motor Vehicle Manufacturers and Franchised Motor Vehicle Dealers


summary

Introduced
02/28/2025
In Committee
03/07/2025
Crossed Over
Passed
Dead
06/16/2025

Introduced Session

2025 Regular Session

Bill Summary

An act relating to motor vehicle manufacturers and franchised motor vehicle dealers; amending s. 320.64, F.S.; prohibiting an applicant or a licensee, or a common entity thereof, from establishing, implementing, or enforcing certain criteria for measuring the sales or service performance of its franchised motor vehicle dealers unless certain conditions are met; prohibiting an applicant or a licensee, or a common entity thereof, from engaging in an action that is taken as retaliation against a motor vehicle dealer under certain circumstances; amending s. 320.641, F.S.; revising the circumstances in which a discontinuation, cancellation, nonrenewal, modification, or replacement of a franchise agreement is deemed unfair; providing an effective date.

AI Summary

This bill modifies Florida laws governing relationships between motor vehicle manufacturers and their franchised dealers by establishing new protections for dealers. The bill prohibits manufacturers from creating performance measurement criteria for dealers that are unfair, unreasonable, or incomplete, and requires manufacturers to provide detailed written explanations of how such performance criteria are designed and calculated. Additionally, the bill prevents manufacturers from retaliating against dealers who assert their legal rights, such as challenging manufacturer practices or participating in investigations. The legislation also strengthens provisions around franchise agreement terminations by requiring manufacturers to act in good faith, provide dealers with opportunities to correct performance issues (including a mandatory 180-day correction period for alleged performance failures), and placing the burden of proof on manufacturers to demonstrate that any discontinuation, cancellation, modification, or replacement of a franchise agreement is fair and justified. These changes aim to provide more legal protection and procedural fairness for motor vehicle dealers in their relationships with manufacturers, ensuring that dealers are not subjected to arbitrary or discriminatory treatment. The bill is set to take effect on July 1, 2025.

Committee Categories

Business and Industry

Sponsors (1)

Other Sponsors (1)

Transportation (S)

Last Action

Laid on Table, companion bill(s) passed, see CS/CS/HB 429 (Ch. 2025-38) (on 04/24/2025)

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