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CS/HB 989 2026
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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 motor vehicle manufacturers, 2
importers, and distributors and franchised motor 3
vehicle dealers; amending s. 320.64, F.S.; authorizing 4
a licensee to reject the ownership succession of a 5
motor vehicle dealer if such succession will cause 6
violation of certain provisions; clarifying what motor 7
vehicles a licensee must repurchase from a motor 8
vehicle dealer upon termination of a franchise 9
agreement; providing that a licensee who distributes 10
1,000 or more motor vehicles of a particular line-make 11
to motor vehicle dealers in this state during any 12-12
month period must have established a network of at 13
least three independent motor vehicle dealers in this 14
state; providing applicability; amending s. 320.643, 15
F.S.; authorizing a licensee to reject a proposed 16
change in ownership if such change would cause 17
violation of certain provisions; providing an 18
effective date. 19
20
Be It Enacted by the Legislature of the State of Florida: 21
22
Section 1. Subsection (16) and paragraph (a) of subsection 23
(36) of section 320.64, Florida Statutes, are amended, and 24
subsection (44) is added to that section, to read: 25
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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
320.64 Denial, suspension, or revocation of license; 26
grounds.—A license of a licensee under s. 320.61 may be denied, 27
suspended, or revoked within the entire state or at any specific 28
location or locations within the state at which the applicant or 29
licensee engages or proposes to engage in business, upon proof 30
that the section was violated with sufficient frequency to 31
establish a pattern of wrongdoing, and a licensee or applicant 32
shall be liable for claims and remedies provided in ss. 320.695 33
and 320.697 for any violation of any of the following 34
provisions. A licensee is prohibited from committing the 35
following acts: 36
(16)(a) Notwithstanding the terms of any franchise 37
agreement, the applicant or licensee prevents or refuses to 38
accept the succession to any interest in a franchise agreement 39
by any legal heir or devisee under the will of a motor vehicle 40
dealer or under the laws of descent and distribution of this 41
state; provided, the applicant or licensee is not required to 42
accept a succession: 43
1. When where such heir or devisee does not meet 44
licensee's written, reasonable, and uniformly applied minimal 45
standard qualifications for dealer applicants; 46
2. or Which, after notice and administrative hearing 47
pursuant to chapter 120, is demonstrated to be detrimental to 48
the public interest or to the representation of the applicant or 49
licensee; or 50
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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
3. When the direct result of such succession will cause 51
the applicant or licensee to be in violation of subsection (44). 52
(b) Nothing in this subsection contained herein, however, 53
shall prevent a motor vehicle dealer, during his or her 54
lifetime, from designating any person as his or her successor in 55
interest by written instrument filed with and accepted by the 56
applicant or licensee. A licensee who rejects the successor 57
transferee under this subsection shall have the burden of 58
establishing in any proceeding where such rejection is in issue 59
that the rejection of the successor transferee complies with 60
this subsection. 61
(36)(a) Notwithstanding the terms of any franchise 62
agreement, in addition to any other statutory or contractual 63
rights of recovery after the voluntary or involuntary 64
termination, cancellation, or nonrenewal of a franchise, failing 65
to pay the motor vehicle dealer, as provided in paragraph (d), 66
the following amounts: 67
1. The net cost paid by the dealer for each new motor 68
vehicle other than motorcycles car or truck in the dealer's 69
inventory with mileage of 2,000 miles or less, or each new a 70
motorcycle in the dealer's inventory with mileage of 100 miles 71
or less, exclusive of mileage placed on the motor vehicle before 72
it was delivered to the dealer. 73
2. The current price charged for each new, unused, 74
undamaged, or unsold part or accessory that: 75
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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. Is in the current parts catalog and is still in the 76
original, resalable merchandising package and in an unbroken 77
lot, except that sheet metal may be in a comparable substitute 78
for the original package; and 79
b. Was purchased by the dealer directly from the 80
manufacturer or distributor or from an outgoing authorized 81
dealer as a part of the dealer's initial inventory. 82
3. The fair market value of each undamaged sign owned by 83
the dealer which bears a trademark or trade name used or claimed 84
by the applicant or licensee or its representative which was 85
purchased from or at the request of the applicant or licensee or 86
its representative. 87
4. The fair market value of all special tools, data 88
processing equipment, and automotive service equipment owned by 89
the dealer which: 90
a. Were recommended in writing by the applicant or 91
licensee or its representative and designated as special tools 92
and equipment; 93
b. Were purchased from or at the request of the applicant 94
or licensee or its representative; and 95
c. Are in usable and good condition except for reasonable 96
wear and tear. 97
5. The cost of transporting, handling, packing, storing, 98
and loading any property subject to repurchase under this 99
section. 100
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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
(44)(a) The applicant or licensee has directly or 101
indirectly distributed 1,000 or more motor vehicles of a 102
particular line-make to motor vehicle dealers in this state 103
during any 12-month period and has directly or indirectly 104
distributed more than 33.33 percent of those same line-make 105
motor vehicles during that 12-month period to one motor vehicle 106
dealer or to multiple motor vehicle dealers that share common 107
ownership or control. For purposes of this subsection, a motor 108
vehicle dealer shares common ownership or control with another 109
motor vehicle dealer if: 110
1. It is directly or indirectly controlled by or has more 111
than 30 percent of its equity interest directly or indirectly 112
owned by another motor vehicle dealer; or 113
2. It has more than 30 percent of its equity interest 114
directly or indirectly controlled or owned by one or more 115
persons who also directly or indirectly control or own more than 116
30 percent of the equity interests of another motor vehicle 117
dealer. 118
(b) This subsection does not apply to any line-make of 119
motor vehicle for which there exists a licensed franchised 120
dealer in this state as of January 1, 2026, or to an applicant 121
or licensee who is not prohibited by s. 320.645 from owning or 122
operating a motor vehicle dealer. 123
124
A motor vehicle dealer who can demonstrate that a violation of, 125
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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
or failure to comply with, any of the preceding provisions by an 126
applicant or licensee will or may adversely and pecuniarily 127
affect the complaining dealer, shall be entitled to pursue all 128
of the remedies, procedures, and rights of recovery available 129
under ss. 320.695 and 320.697. 130
Section 2. Subsections (1) and (2) of section 320.643, 131
Florida Statutes, are amended to read: 132
320.643 Transfer, assignment, or sale of franchise 133
agreements.— 134
(1)(a) Notwithstanding the terms of any franchise 135
agreement, a licensee shall not, by contract or otherwise, fail 136
or refuse to give effect to, prevent, prohibit, or penalize or 137
attempt to refuse to give effect to, prohibit, or penalize any 138
motor vehicle dealer from selling, assigning, transferring, 139
alienating, or otherwise disposing of its franchise agreement to 140
any other person or persons, including a corporation established 141
or existing for the purpose of owning or holding a franchise 142
agreement, unless the licensee proves at a hearing pursuant to a 143
complaint filed by a motor vehicle dealer under this section 144
that the sale, transfer, alienation, or other disposition: 145
1. Is to a person who is not, or whose controlling 146
executive management is not, of good moral character; 147
2. Is to a person who or does not meet the written, 148
reasonable, and uniformly applied standards or qualifications of 149
the licensee relating to financial qualifications of the 150
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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
transferee and business experience of the transferee or the 151
transferee's executive management; or 152
3. Would directly cause the licensee to be in violation of 153
s. 320.64(44). 154
(b) A motor vehicle dealer who desires to sell, assign, 155
transfer, alienate, or otherwise dispose of a franchise shall 156
notify, or cause the proposed transferee to notify, the 157
licensee, in writing, setting forth the prospective transferee's 158
name, address, financial qualifications, and business experience 159
during the previous 5 years. A licensee who receives such notice 160
may, within 60 days following such receipt, notify the motor 161
vehicle dealer, in writing, that the proposed transferee is not 162
a person qualified to be a transferee under this section and 163
setting forth the material reasons for such rejection. Failure 164
of the licensee to notify the motor vehicle dealer within the 165
60-day period of such rejection shall be deemed an approval of 166
the transfer. No such transfer, assignment, or sale shall be 167
valid unless the transferee agrees in writing to comply with all 168
requirements of the franchise then in effect, but with the 169
ownership changed to the transferee. 170
(c)(b) A motor vehicle dealer whose proposed sale is 171
rejected may, within 60 days following such receipt of such 172
rejection, file with the department a complaint for a 173
determination that the proposed transferee has been rejected in 174
violation of this section. The licensee has the burden of proof 175
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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
with respect to all issues raised by the complaint. The 176
department shall determine, and enter an order providing, that 177
the proposed transferee is either qualified or is not and cannot 178
be qualified for specified reasons, or the order may provide the 179
conditions under which a proposed transferee would be qualified. 180
If the licensee fails to file such a response to the motor 181
vehicle dealer's complaint within 30 days after receipt of the 182
complaint, unless the parties agree in writing to an extension, 183
or if the department, after a hearing, renders a decision other 184
than one disqualifying the proposed transferee, the franchise 185
agreement between the motor vehicle dealer and the licensee is 186
deemed amended to incorporate such transfer or amended in 187
accordance with the determination and order rendered, effective 188
upon compliance by the proposed transferee with any conditions 189
set forth in the determination or order. 190
(2)(a) Notwithstanding the terms of any franchise 191
agreement, a licensee shall not, by contract or otherwise, fail 192
or refuse to give effect to, prevent, prohibit, or penalize, or 193
attempt to refuse to give effect to, prevent, prohibit, or 194
penalize, any motor vehicle dealer or any proprietor, partner, 195
stockholder, owner, or other person who holds or otherwise owns 196
an interest therein from selling, assigning, transferring, 197
alienating, or otherwise disposing of, in whole or in part, the 198
equity interest of any of them in such motor vehicle dealer to 199
any other person or persons, including a corporation established 200
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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
or existing for the purpose of owning or holding the stock or 201
ownership interests of other entities, unless the licensee 202
proves at a hearing pursuant to a complaint filed by a motor 203
vehicle dealer under this section that the sale, transfer, 204
alienation, or other disposition: 205
1. Is to a person who is not, or whose controlling 206
executive management is not, of good moral character; or 207
2. Would directly cause the licensee to be in violation of 208
s. 320.64(44). 209
(b) A motor vehicle dealer, or any proprietor, partner, 210
stockholder, owner, or other person who holds or otherwise owns 211
an interest in the motor vehicle dealer, who desires to sell, 212
assign, transfer, alienate, or otherwise dispose of any interest 213
in such motor vehicle dealer shall notify, or cause the proposed 214
transferee to so notify, the licensee, in writing, of the 215
identity and address of the proposed transferee. A licensee who 216
receives such notice may, within 60 days following such receipt, 217
notify the motor vehicle dealer in writing that the proposed 218
transferee is not a person qualified to be a transferee under 219
this section and setting forth the material reasons for such 220
rejection. Failure of the licensee to notify the motor vehicle 221
dealer within the 60-day period of such rejection shall be 222
deemed an approval of the transfer. Any person whose proposed 223
sale of stock is rejected may file within 60 days after of 224
receipt of such rejection a complaint with the department 225
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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
alleging that the rejection was in violation of the law or the 226
franchise agreement. The licensee has the burden of proof with 227
respect to all issues raised by such complaint. The department 228
shall determine, and enter an order providing, that the proposed 229
transferee either is qualified or is not and cannot be qualified 230
for specified reasons; or the order may provide the conditions 231
under which a proposed transferee would be qualified. If the 232
licensee fails to file a response to the motor vehicle dealer's 233
complaint within 30 days after of receipt of the complaint, 234
unless the parties agree in writing to an extension, or if the 235
department, after a hearing, renders a decision on the complaint 236
other than one disqualifying the proposed transferee, the 237
transfer shall be deemed approved in accordance with the 238
determination and order rendered, effective upon compliance by 239
the proposed transferee with any conditions set forth in the 240
determination or order. 241
(c)(b) Notwithstanding paragraph (a), a licensee may not 242
reject a proposed transfer of a legal, equitable, or beneficial 243
interest in a motor vehicle dealer to a trust or other entity, 244
or to any beneficiary thereof, which is established by an owner 245
of any interest in a motor vehicle dealer for purposes of estate 246
planning, if the controlling person of the trust or entity, or 247
the beneficiary, is of good moral character. 248
Section 3. This act shall take effect July 1, 2026. 249