HB 429 — Motor Vehicle Manufacturers and Franchised Motor Vehicle Dealers

F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 429 2025 A bill to be entitled An act relating to motor vehicle manufacturers and franchised motor vehicle dealers;

prohibiting an applicant or a licensee, or a common entity thereof, from establishing,implementing implementing, or enforcing certain criteria for measuring the sales or service performance ofmeasurement itscriteria franchisedwithout providing motor vehicle dealers unlesswith certainthe conditionsbasis arefor met;any sales or service performance measurement;

prohibiting an applicant or a licensee, or a common entity thereof, from engaging in ancertain actionretaliatory thator isdiscriminatory takenconduct; as retaliation against a motor vehicle dealer under certain circumstances;

revising theconditions circumstancesunder in which a discontinuation, cancellation, nonrenewal, modification, or replacementnonrenewal of a franchise agreement is deemedconsidered unfair;

320.61 may be denied, suspended, or revoked within the entire state or at any specific location or locations within the state at which the applicant or licensee engages or proposes to engage in business, upon proof Page 1 of 5 CODING:

hb429-02-c2hb429-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 429 2025 location or locations within the state at which the applicant or licensee engages or proposes to engage in business, upon proof that the section was violated with sufficient frequency to establish a pattern of wrongdoing, and a licensee or applicant shall be liable for claims and remedies provided in ss.

(42)(a) The applicant or licensee, or a common entity thereof, has established, implemented, or enforced criteria for measuring the sales or service performance of any of its franchised motor vehicle dealers in this state which have a material or adverse effect on any motor vehicle dealer and which:

(b) The An applicant or, licensee, or a common entityentity, or an affiliate thereof, has implemented or enforced criteria for measuring the sales or service performance of any of its franchised motor vehicle dealers in this state without, before implementation or enforcement, providing a written description Page 2 of 5 CODING:

hb429-02-c2hb429-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 429 2025 vehicle dealers in this state without first making available and readily accessible, before such implementation or enforcement, a written description to each such franchised,franchised or an affiliate thereof, which enforces against any motor vehicle dealer any such performance measurement criteria shall, upon the request of the motor vehicle dealer, describe in writing to the motor vehicle dealer in this state whichproviding, describes, in detail, how the performance measurement criteria were designed, calculated, established, and uniformly applied.

(43) The applicant or licensee, or a common entity thereof, has engaged in an action, or implemented a policy, standard, rule, practice, or program, taken as retaliation against a franchised motor vehicle dealer because the dealer invoked aany statutory right createdpursuant byto ss.

320.60-320.70,320.60-320.70; asserted that the applicant, licensee, or common entity has acted in a manner that violates a provision of ss.

320.60-320.70,asserted orthat hasthe testified,applicant assisted,or licensee, or participatedcommon inentity anythereof, manneracted in an investigation, a proceeding,manner or a hearing that mayviolates directlyany affectprovision theof applicant,ss. licensee, or common entity.

A320.60-320.70; motor vehicle dealer who can demonstrate that a violation of, or failure to comply with, any of the preceding provisions by an applicant or licensee will or may adversely and pecuniarily affect the complaining dealer, shall be entitled to pursue all of the remedies, procedures, and rights of recovery available Page 3 of 5 CODING:

Wordsor strickentestified, areassisted, deletions;or participated in any manner in an investigation, a proceeding, or a hearing that may directly affect the applicant or licensee, or common entity thereof.

wordsA underlinedmotor arevehicle additions.dealer who can demonstrate that a violation of, or failure to comply with, any of the preceding provisions by an applicant or licensee will or may adversely and pecuniarily affect the complaining dealer, shall be entitled to pursue all of the remedies, procedures, and rights of recovery available under ss.

hb429-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 429 2025 under ss.

320.641Page Discontinuations,3 cancellations, nonrenewals, modifications, and replacement of franchise5 agreements.—CODING: (3) Any motor vehicle dealer who receives a notice of intent to discontinue, cancel, not renew, modify, or replace may, within the 90-day notice period, file a petition or complaint for a determination of whether such action is an unfair or prohibited discontinuation, cancellation, nonrenewal, modification, or replacement.

Agreements and certificates of appointment must shall continue in effect until final determination of the issues raised in such petition or complaint by the motor vehicle dealer.

A discontinuation, cancellation, or nonrenewal of a franchise agreement is unfair if it is not clearly permitted by the franchise agreement;

is not undertaken in good faith;

is not undertaken for good cause;

or is not based on a material and substantial an alleged breach of the franchise agreement by the motor vehicle dealer which is not in fact a material and substantial breach;

or, if the grounds relied upon for termination, cancellation, or nonrenewal have not been applied in a uniform and consistent manner by the licensee.

If the notice of discontinuation, cancellation, or nonrenewal relates to an alleged failure of the new motor vehicle dealer's sales or service performance obligations under the franchise Page 4 of 5 CODING:

hb429-02-c2hb429-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 429 2025 agreement,320.641 theDiscontinuations, newcancellations, nonrenewals, modifications, and replacement of franchise agreements.— (3) Any motor vehicle dealer mustwho firstreceives bea providednotice withof atintent leastto 180discontinue, dayscancel, tonot correctrenew, modify, or replace may, within the alleged90-day failurenotice beforeperiod, file a licenseepetition mayor sendcomplaint thefor noticea determination of whether such action is an unfair or prohibited discontinuation, cancellation, nonrenewal, modification, or nonrenewal.replacement.

AAgreements modificationand orcertificates replacementof isappointment unfairshall ifcontinue itin iseffect notuntil clearlyfinal permitteddetermination of the issues raised in such petition or complaint by the franchisemotor agreement;vehicle dealer.

(a) A discontinuation, cancellation, or nonrenewal of a franchise agreement is notunfair undertakenunless inall goodof faith;the following apply:

or1. is not undertaken for good cause.

Theif applicantIt oris licenseenot hasclearly shallpermitted haveby the burdenfranchise ofagreement; proof that such discontinuation, cancellation, nonrenewal, modification, or replacement action is fair and not prohibited.

2.

It is not undertaken in good faith;

3.

It is not undertaken for good cause;

4.

It or is based on the motor vehicle dealer's an alleged breach of the franchise agreement which is not in fact a material and substantial breach, but not if the discontinuation, cancellation, or nonrenewal applies to all same line-make franchised motor vehicle dealers and is otherwise permitted by ss.

320.60-320.70;

and 5.

or, if The grounds relied upon for discontinuation termination, cancellation, or nonrenewal have not been applied Page 4 of 5 CODING:

Words stricken are deletions;

words underlined are additions.