SB 616 — Motor Vehicle Dealers

A motor vehicle dealer may, at retail or wholesale, sell a recreational vehicle as described in s.

320.01(1)(b)1.-6.

and 8., acquired in exchange for the sale or lease of a motor vehicle, provided such acquisition is incidental to the principal business of being a motor vehicle dealer.

However, a motor vehicle dealer may not buy a recreational vehicle for the purpose of resale unless licensed as a recreational vehicle dealer pursuant to s.

320.771.

A motor vehicle dealer may apply for a certificate of title to a motor vehicle required to be registered under s.

320.08(2)(b), (c), and (d), using a manufacturer’s statement of origin as permitted by s.

319.23(1), only if such dealer is authorized by a franchised agreement as defined in s.

320.60(1), to buy, sell, or deal in such vehicle and is authorized by such agreement to perform delivery and preparation obligations and warranty defect adjustments on the motor vehicle;

provided this limitation shall not apply to recreational vehicles, van conversions, or any other motor vehicle manufactured on a truck chassis.

The transfer of a motor vehicle by a dealer not meeting these qualifications shall be titled as a used vehicle.

The classifications of motor vehicle dealers are defined as follows:

1. “Franchised motor vehicle dealer” means any person who engages in the business of repairing, servicing, buying, selling, or leasing dealing in motor vehicles pursuant to an agreement as defined in s.

320.60(1).

A motor vehicle dealer may apply for a certificate of title to a motor vehicle required to be registered under s.

320.08(2)(b), (c), and (d) or s.

320.08(3)(a), (b), or (c), using a manufacturer’s statement of origin as permitted by s.

319.23(1), only if such dealer is authorized by a franchise agreement as defined in s.

320.60(1) to buy, sell, or lease such vehicles and to perform delivery and preparation obligations and warranty defect adjustments on the motor vehicle.

This limitation does not apply to recreational vehicles, van conversions, or any other motor vehicle manufactured on a truck chassis.

A motor vehicle dealer may not transfer a manufacturer’s statement of origin for a motor vehicle to any person who intends to sell such motor vehicle in this state unless such person is a licensed motor vehicle dealer authorized by a franchise agreement to buy, sell, or lease such vehicles.

2. “Independent motor vehicle dealer” means any person other than a franchised or wholesale motor vehicle dealer who engages in the business of buying, selling, or leasing dealing in motor vehicles, and who may service and repair motor vehicles.

3. “Wholesale motor vehicle dealer” means any person who engages exclusively in the business of buying or, selling, or dealing in motor vehicles at wholesale or with motor vehicle auctions.

Such person shall be licensed to do business in this state, shall not sell or auction a vehicle to any person who is not a licensed dealer, and shall not have the privilege of the use of dealer license plates.

Any person who buys, sells, or deals in motor vehicles at wholesale or with motor vehicle auctions on behalf of a licensed motor vehicle dealer and as a bona fide employee of such licensed motor vehicle dealer is not required to be licensed as a wholesale motor vehicle dealer.

In such cases it shall be prima facie presumed that a bona fide employer-employee relationship exists.

A wholesale motor vehicle dealer shall be exempt from the display provisions of this section but shall maintain an office wherein records are kept in order that those records may be inspected.

4. “Motor vehicle auction” means any person offering motor vehicles or recreational vehicles for sale to the highest bidder where buyers are licensed motor vehicle dealers.

Such person shall not sell a vehicle to anyone other than a licensed motor vehicle dealer.

5. “Salvage motor vehicle dealer” means any person who engages in the business of acquiring salvaged or wrecked motor vehicles for the purpose of reselling them and their parts.

170 Notwithstanding anything in this subsection to the contrary, the term “motor vehicle dealer” does not include persons not engaged in the purchase, or sale, or lease of motor vehicles as a business who are disposing of vehicles acquired for their own use or for use in their business or acquired by foreclosure or by operation of law, provided such vehicles are acquired and sold in good faith and not for the purpose of avoiding the provisions of this law;

persons engaged in the business of manufacturing, selling, or offering or displaying for sale or lease at wholesale or retail no more than 25 trailers in a 12- month period;

public officers while performing their official duties;

receivers;

trustees, administrators, executors, guardians, or other persons appointed by, or acting under the judgment or order of, any court;

banks, finance companies, or other loan agencies that acquire motor vehicles as an incident to their regular business;

persons whose sole dealing in motor vehicles is owning a publication in which, or hosting a website on which, licensed motor vehicle dealers display vehicles for sale or lease;

persons primarily engaged in the business of the short-term rental of motor vehicles, which rental term may not exceed 12 months, who are not involved in the retail sale or lease of motor vehicles;

motor vehicle brokers;

and motor vehicle rental and leasing companies that sell motor vehicles only to motor vehicle dealers licensed under this section.

Vehicles owned under circumstances described in this paragraph may be disposed of at retail, wholesale, or auction, unless otherwise restricted.

A manufacturer of fire trucks, ambulances, or school buses may sell such vehicles directly to governmental agencies or to persons who contract to perform or provide firefighting, ambulance, or school transportation services exclusively to governmental agencies without processing such sales through dealers if such fire trucks, ambulances, school buses, or similar vehicles are not presently available through motor vehicle dealers licensed by the department.

(d) “Motor vehicle broker” means any person engaged in the business of offering to procure or procuring motor vehicles for the general public, or who holds himself or herself out through solicitation, advertisement, or otherwise as one who offers to procure or procures motor vehicles for the general public, and who does not store, display, or take ownership of any vehicles for the purpose of selling such vehicles.

(2) LICENSE REQUIRED.—No person shall engage in business as, serve in the capacity of, or act as a motor vehicle dealer in this state without first obtaining a license therefor in the appropriate classification as provided in this section.

With the exception of transactions with motor vehicle auctions, no person other than a licensed motor vehicle dealer may advertise for sale or lease any motor vehicle belonging to another party unless as a direct result of a bona fide legal proceeding, court order, settlement of an estate, or by operation of law, or if done by a person whose sole dealing in motor vehicles is owning a publication in which, or hosting a website on which, licensed motor vehicle dealers display vehicles for sale or lease.

However, owners of motor vehicles titled in their names may advertise and offer motor vehicles for sale on their own behalf, provided such vehicles are acquired and sold in good faith and not for the purpose of avoiding the requirements of this section.

It shall be unlawful for a licensed motor vehicle dealer to allow any person other than its a bona fide employee to use the motor vehicle dealer license for the purpose of acting in the capacity of or conducting motor vehicle sales or lease transactions as a motor vehicle dealer.

Any person acting selling or offering a motor vehicle for sale in violation of the licensing requirements of this subsection, or who misrepresents to any person his or her its relationship with any manufacturer, importer, or distributor, or motor vehicle dealer, in addition to the penalties provided herein, shall be deemed to have committed guilty of an unfair and deceptive trade practice as defined in violation of part II of chapter 501 and shall be subject to the provisions of subsections (8) and (9).

(4) LICENSE CERTIFICATE.— (a) A license certificate shall be issued by the department in accordance with such application when the application is regular in form and in compliance with the provisions of this section.

The license certificate may be in the form of a document or a computerized card as determined by the department.

The actual cost of each original, additional, or replacement computerized card shall be borne by the licensee and is in addition to the fee for licensure.

Such license, when so issued, entitles the licensee to carry on and conduct the business of a motor vehicle dealer.

Each license issued to a franchise motor vehicle dealer expires on December 31 of the year of its expiration unless revoked or suspended before prior to that date.

Each license issued to an independent or wholesale dealer or auction expires on April 30 of the year of its expiration unless revoked or suspended prior to that date.

At least 60 days before the license expiration date, the department shall deliver or mail to each licensee the necessary renewal forms along with a statement that the licensee is required to complete any applicable continuing education or industry certification requirements.

Each independent dealer shall certify that the dealer (owner, partner, officer, or director of the licensee, or a full-time employee of the licensee that holds a responsible management-level position) has completed 8 hours of continuing education prior to filing the renewal forms with the department.

Such certification shall be filed once every 2 years.

The continuing education shall include at least 2 hours of legal or legislative issues, 1 hour of department issues, and 5 hours of relevant motor vehicle industry topics.

Continuing education shall be provided by dealer schools licensed under paragraph (b) either in a classroom setting or by correspondence.

Such schools shall provide certificates of completion to the department and the customer which shall be filed with the license renewal form, and such schools may charge a fee for providing continuing education.

Any licensee who does not file his or her application and fees and any other requisite documents, as required by law, with the department at least 30 days prior to the license expiration date shall cease to engage in business as a motor vehicle dealer on the license expiration date.

A renewal filed with the department within 45 days after the expiration date shall be accompanied by a delinquent fee of $100.

Thereafter, a new application is required, accompanied by the initial license fee.

A license certificate duly issued by the department may be modified by endorsement to show a change in the name of the licensee, provided, as shown by affidavit of the licensee, the majority ownership interest of the licensee has not changed or the name of the person appearing as franchisee on the sales and service agreement has not changed.

Modification of a license certificate to show any name change as herein provided shall not require initial licensure or reissuance of dealer tags;

however, any dealer obtaining a name change shall transact all business in and be properly identified by that name.

All documents relative to licensure shall reflect the new name.

In the case of a franchise dealer, the name change shall be approved by the manufacturer, distributor, or importer.

A licensee applying for a name change endorsement shall pay a fee of $25 which fee shall apply to the change in the name of a main location and all additional locations licensed under the provisions of subsection (5).

Each initial license application received by the department shall be accompanied by verification that, within the preceding 6 months, the applicant, or one or more of his or her designated employees, has attended a training and information seminar conducted by a licensed motor vehicle dealer training school.

Any applicant for a new franchised motor vehicle dealer license who has held a valid franchised motor vehicle dealer license continuously for the past 2 years and who remains in good standing with the department is exempt from the prelicensing training requirement.

Such seminar shall include, but is not limited to, statutory dealer requirements, which requirements include required bookkeeping and recordkeeping procedures, requirements for the collection of sales and use taxes, and such other information that in the opinion of the department will promote good business practices.

No seminar may exceed 8 hours in length.

(b) Each initial license application received by the department for licensure under subparagraph (1)(c)2.

shall be accompanied by verification that, within the preceding 6 months, the applicant (owner, partner, officer, or director of the applicant, or a full-time employee of the applicant that holds a responsible management-level position) has successfully completed training conducted by a licensed motor vehicle dealer training school.

Such training must include training in titling and registration of motor vehicles, laws relating to unfair and deceptive trade practices, laws relating to financing with regard to buy-here, pay-here operations, and such other information that in the opinion of the department will promote good business practices.

Successful completion of this training shall be determined by examination administered at the end of the course and attendance of no less than 90 percent of the total hours required by such school.

Any applicant who had held a valid motor vehicle dealer’s license continuously within the past 2 years and who remains in good standing with the department is exempt from the prelicensing requirements of this section.

The department shall have the authority to adopt any rule necessary for establishing the training curriculum;

length of training, which shall not exceed 8 hours for required department topics and shall not exceed an additional 24 hours for topics related to other regulatory agencies’ instructor qualifications;

and any other requirements under this section.

The curriculum for other subjects shall be approved by any and all other regulatory agencies having jurisdiction over specific subject matters;

however, the overall administration of the licensing of these dealer schools and their instructors shall remain with the department.

Such schools are authorized to charge a fee.

(c) Each application received by the department for renewal of a license under subparagraph (1)(c)2.

must certify that the dealer (owner, partner, officer, or director of the licensee, or a full-time employee of the licensee that holds a responsible management-level position) has completed 8 hours of continuing education prior to filing the renewal forms with the department.

Such certification must be filed once every 2 years.

The continuing education must include at least 2 hours of legal or legislative issues, 1 hour of department issues, and 5 hours of relevant motor vehicle industry topics.

Continuing education shall be provided by dealer schools licensed under paragraph (b) either in a classroom setting or by correspondence.

Such schools shall provide certificates of completion to the department and the customer which shall be filed with the license renewal form, and such schools may charge a fee for providing continuing education.

(d) Each application received by the department for renewal of a license under subparagraph (1)(c)1.

must certify that the dealer (dealer operator, owner, partner, officer, director, or general manager of the licensee) has completed 4 hours of industry certification on legal and legislative issues each year prior to filing the renewal forms with the department.

Industry certification shall be provided by a Florida-based, nonprofit, dealer-owned, statewide industry association of franchised motor vehicle dealers with state and federal compliance credentials approved by the department, and shall be in a classroom setting in convenient locations within the state.

Such association shall provide certificates of completion to the department and the customer which shall be filed with the license renewal form.

An application for renewal of a license previously issued for 1 year must be accompanied by a certificate establishing completion of 4 hours of industry certification during the prior year.

An application for renewal of a license previously issued for 2 years must be accompanied by certificates establishing completion of 8 hours of industry certification, except that renewal of a 2-year license that expires on December 31, 2019, must be accompanied by a certificate establishing completion of 4 hours of industry certification.

An association may charge a fee not to exceed $500 per 4 hours for providing the industry certification.

In 2020 and for each subsequent year, the maximum fee of $500 per 4 hours shall be increased by a percentage equal to the annual Consumer Price Index for All Urban Consumers calculated for the previous year by the Bureau of Labor Statistics of the United States Department of Labor.

In the case of licensees belonging to a dealership group, the required industry certification may be satisfied for all licensees in the dealership group through completion of the industry certification by a single designated owner, officer, director, or manager of the dealership group.

For purposes of this section, the term “dealership group” means two or more licensed franchised motor vehicle dealers with at least one common officer or with common owners having legal or equitable title of at least 50 percent of each dealer in the group.

A licensee who seeks to satisfy the required industry certification through a dealership group must provide the department with evidence of the required common ownership at the time of filing the certificate of completion.

Section 2. This act shall take effect January 1, 2019.