TECHNICAL ADVISORY

DIVISION OF MOTOR VEHICLES

 

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To:  DMV Regional Offices

From:  Carl A. Ford, Director

Subject:  2006 Legislative Changes Which Will Effect Bureau of Field Operation’s Procedures

Advisory Date:  06/30/06                   Implementation Date:  07/01/06

Advisory Number:     BFO06-05

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As a result of the passage of House Bill 1077, the following changes/amendments will become effective July 1, 2006.  Please note that underlined text indicates added language.

 

Section 320.27(4)(a), Florida Statutes was amended to read, “Each independent dealer shall certify that the dealer principal (owner, partner, officer of the corporation, or director of the licensee, or a full-time employee of the licensee who holds a responsible management-level position) has completed 8 hours of continuing education prior to filing the renewal forms with the department.”

 

Section 320.27(5), Florida Statutes, which is specific to franchised dealers was amended to read, “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.”

 

Section 320.27(4)(b), which is specific to independent dealers was amended to read, “Each initial license application received by the department for licensure under subparagraph (1)(c)2. must be accompanied by verification that, within the preceding 6 months, the applicant (owner, partner, officer of the corporation, or director of the applicant, or a full-time employee of the applicant who holds a responsible management-level position) has successfully completed training conducted by a licensed motor vehicle dealer training school.”

 

In addition, certain language was removed from 320.27(4)(b), Florida Statutes.  Specifically, “In the case of nonresident applicants, the requirement to attend such training shall be placed on any employee of the licensee who holds a responsible management-level position and who is employed full-time at the motor

vehicle dealership” was deleted from that above referenced statute.

 

House Bill 1077 also revises the definition for “Demonstrator.”  320.60(3) was amended to read, “"Demonstrator" means any new motor vehicle that which is carried on the records of the dealer as a demonstrator and is used by, being inspected or driven by the dealer or his or her employees, or driven by prospective customers for the purpose of demonstrating vehicle characteristics in the sale or display of motor vehicles sold by the dealer.

 

Section 320.642(1) was amended to remove the requirement for certified mail.  It now reads as follows, “Any licensee who proposes to establish an additional motor vehicle dealership or permit the relocation of an existing dealer to a location within a community or territory where the same line-make vehicle is presently represented by a franchised motor vehicle dealer or dealers shall give written notice of its intention to the department. Such notice shall state:…

 

 

Section 320.64(36)(a) was added to read, Notwithstanding the terms of any franchise agreement, in addition to any other statutory or contractual rights of recovery after the voluntary or involuntary

termination of a franchise, failing to pay the motor vehicle dealer, within 90 days after the effective date of the  termination, cancellation, or nonrenewal, the following amounts:  1. The net cost paid by the dealer for each new car or truck in the dealer's inventory with mileage of 2,000 miles or less, or a motorcycle with mileage of 100 miles or less, exclusive of mileage placed on the vehicle before it was delivered to the dealer.

2. The current price charged for each new, unused, undamaged, or unsold part or accessory that: a. Is in the current parts catalogue and is still in the original, resalable merchandising package and in an unbroken lot, except that sheet metal may be in a comparable substitute for the original package; and b. Was purchased by the dealer directly from the manufacturer or distributor or from an outgoing authorized dealer as a part of the dealer's initial inventory. 3. The fair market value of each undamaged sign owned by the dealer which bears a trademark or trade name used or claimed by the applicant or licensee or its representative which was

purchased from or at the request of the applicant or licensee or its representative. 4. The fair market value of all special tools, data processing equipment, and automotive service equipment owned by the dealer which:

a. Were recommended in writing by the applicant or licensee or its representative and designated as special tools and equipment; b. Were purchased from or at the request of the applicant or licensee or its representative; and c. Are in usable and good condition except for reasonable wear and tear. 5. The cost of transporting, handling, packing, storing, and loading any property subject to repurchase under this section.

(b) This subsection does not apply to a termination, cancellation, or nonrenewal that is implemented as a result of the sale of the assets or stock of the dealer. The dealer shall return the property listed in this subsection to the licensee within 90 days after the effective date of the termination, cancellation, or nonrenewal. The licensee shall supply the dealer with reasonable instructions regarding the method by

which the dealer must return the property. The compensation for the property shall be paid by the licensee within 60 days after the tender of inventory and other items, if the dealer has clear title to the inventory and other items and is in a position to convey that title to the manufacturer or distributor. If the inventory or other items are subject to a security interest, the licensee may make payment jointly to the dealer and the holder of the security interest.”

 

 

Section 320.642(5), Florida Statutes was also amended to read as follows, (a) “The opening or reopening of the same or a successor  motor vehicle dealer within 12 months is not considered  an additional motor vehicle dealer subject to protest within the  meaning of this section, if:  1. (a) The opening or reopening is within the same or an  adjacent county and, is within 2 miles of the former motor  vehicle dealer location;,

2. (b) There is no dealer within 25 miles of the proposed  location or the proposed location is further from each existing  dealer of the same line-make than the prior location is from  each dealer of the same line-make within 25 miles of the new  location;,  3. (c) The opening or reopening is within 6 miles of the

prior location and, if any existing motor vehicle dealer of the same line-make is located within 15 miles of the former  location, the proposed location is no closer to any existing  dealer of the same line-make within 15 miles of the proposed  location;, or  4. (d) The opening or reopening is within 6 miles of the prior location and, if all existing motor vehicle dealers of the  same line-make are beyond 15 miles of the former location, the  proposed location is further than 15 miles from any existing  motor vehicle dealer of the same line-make.  (b) Any other such opening or reopening shall constitute  an additional motor vehicle dealer within the meaning of this  section. (c) If a motor vehicle dealer has been opened or reopened  pursuant to this subsection, the licensee may not propose a  motor vehicle dealer of the same line-make to be located within

4 miles of the previous location of such dealer for 2 years after the date the relocated dealership opens.

 

Section 320.642(7) and (8) have been added to the statutes to read:

 

(7) Measurements of the distance between proposed or  existing dealer locations required by this section shall be  taken from the geometric centroid of the property that  encompasses all of the existing or proposed motor vehicle dealer  operations.

 

(8) The department shall not be obligated to determine the  accuracy of any distance asserted by any party in a notice  submitted to it. Any dispute concerning a distance measurement  asserted by a party shall be resolved by a hearing conducted in  accordance with ss. 120.569 and 120.57.

 

House Bill 7079 was also approved by the Governor and will take affect on October 1, 2006.  Those changes include some language that is identical to the language in House bill 1077.  Specifically it:

 

 

 

 

Additionally, House Bill 7079 adds the definition of a “Mobile home salesperson” and requires the dealer to register the mobile home salesperson with the department.  The new law also states that failure to register a mobile home salesperson with the department is grounds for denial, suspension or revocation of a license.  The actual language contained in the bill reads:

 

320.77(c)1. "Mobile home salesperson" means a person not otherwise expressly excluded by this section who:  a. Is employed as a salesperson by a mobile home dealer,  as defined in s. 320.77, or who, under any contract, agreement,  or arrangement with a dealer, for a commission, money, profit,  or any other thing of value, sells, exchanges, buys, or offers  for sale, negotiates, or attempts to negotiate a sale or  exchange of an interest in a mobile home required to be titled  under this chapter;  b. Induces or attempts to induce any person to buy or  exchange an interest in a mobile home required to be registered  and who receives or expects to receive a commission, money,  brokerage fees, profit, or any other thing of value from the seller or purchaser of the mobile home; or  c. Exercises managerial control over the business of a  licensed mobile home dealer or who supervises mobile home  salespersons employed by a licensed mobile home dealer, whether  compensated by salary or commission, including, but not limited  to, any person who is employed by the mobile home dealer as a  general manager, assistant general manager, or sales manager, or  any employee of a licensed mobile home dealer who negotiates  with or induces a customer to enter into a security agreement or  purchase agreement or purchase order for the sale of a mobile  home on behalf of the licensed mobile home dealer.  2. The term does not include:  a. A representative of an insurance company or a finance  company, or a public official who, in the regular course of  business, is required to dispose of or sell mobile homes under a  contractual right or obligation of the employer, in the  performance of an official duty, or under the authority of any  court if the sale is to save the seller from any loss or  pursuant to the authority of a court.  b. A person who is licensed as a manufacturer,  remanufacturer, transporter, distributor, or representative of  mobile homes.  c. A person who is licensed as a mobile home dealer under

this chapter.  d. A person not engaged in the purchase or sale of mobile homes as a business who is disposing of mobile homes acquired for his or her own use or for use in his or her business if the mobile homes were acquired and used in good faith and not for the purpose of avoiding the provisions of this chapter. (9) Salespersons to be registered by licensees.-- (a) Each licensee shall register with the department, within 30 days after the date of hire, the name, local residence  address, and home telephone number of each person employed by  such licensee as a mobile home salesperson. A licensee may not  provide a post office box in lieu of a physical residential  address.  (b) Each time a mobile home salesperson employed by a

licensee changes his residence address, the salesperson must notify the department within 20 days after the change.  (c) Quarterly, each licensee shall notify the department  of the termination or separation from employment of each mobile  home salesperson employed by the licensee. Each notification must be on a form prescribed by the department.

 

All of the above affect our licensing processes.  These amendments and additions will be updated in BFO Procedure DLR-01 and DLHQ-02 as soon as possible.  FRVIS programming will be required to capture the name, address, etc., of mobile home salespersons.  A new form will be created so the dealer can update our records upon the hiring of and/or separation from a mobile home salesperson.  This process should be in place with the next FRVIS release.

 

If you have any questions or need further clarification, please contact your Dealer License Representative.

 

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