HB0291 • 2026

Common Entities of Motor Vehicle Distributors and Manufacturers

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: McFarland
Last action: 2026-03-13
Official status: House - Died in Industries & Professional Activities Subcommittee
Effective date: 2026-07-01

Plain English Breakdown

The official text lists 'Passed Legislature' but also notes it 'Died in Industries & Professional Activities Subcommittee,' creating a conflict regarding its final status.

Changing the Definition of Common Entities for Car Dealers and Makers

This bill changes how Florida law defines a 'common entity' to clarify which car dealerships are linked by ownership to manufacturers or other distributors.

What This Bill Does

Revises the legal definition of 'common entity' in state statutes regarding motor vehicles.
States that an entity is common if it shares more than 30 percent equity interest with a manufacturer, importer, distributor, licensee, or their affiliate.
Includes entities where one person owns over 30 percent of both the new business and a car maker, importer, distributor, licensee, or their affiliate.
Excludes certain existing distributors from this definition if they were licensed before March 1, 2023, provided specific conditions are met.
Sets an effective date for these changes to begin on July 1, 2026.

Who It Names or Affects

Motor vehicle manufacturers and importers
Licensed motor vehicle distributors and dealerships (licensees)
Business entities that share ownership with car makers or dealers

Terms To Know

Common entity: A business linked to a car maker, importer, distributor, licensee, or their affiliate because they share more than 30 percent of the same owners.
Equity interest: The amount of ownership someone holds in a company, often measured as a percentage.

Limits and Unknowns

This bill does not apply to distributors that were already licensed before March 1, 2023, if the entity is also not linked to a manufacturer or importer and the distributor has never been linked to one.
It only affects entities with more than 30 percent shared ownership; smaller shares are not covered by this definition.

Bill History

2026-03-13 House
• Died in Industries & Professional Activities Subcommittee
2026-01-13 House
• 1st Reading (Original Filed Version)
2025-11-12 House
• Referred to Industries & Professional Activities Subcommittee • Referred to Civil Justice & Claims Subcommittee • Referred to Commerce Committee • Now in Industries & Professional Activities Subcommittee
2025-10-31 House
• Filed

Official Summary Text

Common Entities of Motor Vehicle Distributors and Manufacturers; Revises definition of "common entity."

Current Bill Text

Read the full stored bill text

HB 291 2026

CODING: Words stricken are deletions; words underlined are additions.
hb291-00
Page 1 of 2
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

A bill to be entitled 1
An act relating to common entities of motor vehicle 2
distributors and manufacturers; revising the 3
definition of the term "common entity"; providing an 4
effective date. 5
6
Be It Enacted by the Legislature of the State of Florida: 7
8
Section 1. Subsection (2) of section 320.60, Florida 9
Statutes, is amended to read: 10
320.60 Definitions for ss. 320.61-320.70.—Whenever used in 11
ss. 320.61-320.70, unless the context otherwise requires, the 12
following words and terms have the following meanings: 13
(2)(a) "Common entity" means a person: 14
1. Who is directly or indirectly controlled by or has more 15
than 30 percent of its equity interest directly or indirectly 16
owned, beneficially or of record, through any form of ownership 17
structure, by a manufacturer, an importer, a distributor, or a 18
licensee, or an affiliate thereof; or 19
2. Who has more than 30 percent of its equity interest 20
directly or indirectly controlled or owned, beneficially or of 21
record, through any form of ownership structure, by one or more 22
persons who also directly or indirectly control or own, 23
beneficially or of record, more than 30 percent of the equity 24
interests of a manufacturer, an importer, a distributor, or a 25

HB 291 2026

CODING: Words stricken are deletions; words underlined are additions.
hb291-00
Page 2 of 2
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

licensee, or an affiliate thereof. 26
(b) Notwithstanding subparagraph (a)1. or subparagraph 27
(a)2., an entity that would otherwise be considered a common 28
entity of a distributor or a manufacturer under subparagraph 29
(a)1. or subparagraph (a)2. because of its relation to a 30
distributor or a manufacturer is not considered a common entity 31
of that distributor or manufacturer if: 32
1.a. The distributor to which the entity is related was a 33
licensed distributor on March 1, 2023; 34
b.2. The entity is not a common entity of a manufacturer 35
or an importer; and 36
c.3. The distributor to which the entity is related is 37
not, and has never been, a common entity of a manufacturer or an 38
importer; or 39
2. The entity was incorporated in the United States and 40
solely manufactures or assembles vehicles that are part of a 41
motor vehicle line-make that has no franchised motor vehicle 42
dealers in this state. 43
Section 2. This act shall take effect July 1, 2026. 44