PCS for HB 989 (2026): An Act Relating to Motor Vehicle Manufacturers — Florida House of Representatives
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- Congressional materials
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- 2026 3288 Industries Professional Activities Subcommittee Proposed Committee Bills Pcbs Fn
Summary
The text of PCS for HB 989 (2026), a Florida House of Representatives bill on motor vehicle manufacturers, importers, distributors and franchised motor vehicle dealers. Section 1 amends s. 320.64, Florida Statutes, revising subsection (16) on when a licensee may reject succession to a franchise by an heir or devisee and subsection (36)(a) on amounts a licensee must pay a dealer on termination. A new subsection (44) applies where a licensee distributes 1,000 or more vehicles of a line-make in the state in any 12-month period and more than 33.33 percent go to one dealer or to commonly owned dealers, with 30 percent equity tests and an exception tied to January 1, 2026. Section 2 amends s. 320.643 on transfers of franchise agreements, keeping the 60-day rejection window and barring rejection of estate-planning transfers to a trust. The 10-page bill takes effect July 1, 2026.
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“PCS for HB 989 (2026): An Act Relating to Motor Vehicle Manufacturers — Florida House of Representatives.”
Original at www.flhouse.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2026-3288-industries-professional-activities-subcommittee-proposed-committee-bills-pcbs-fn-pcs-for-hb-989/
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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
PCS for HB 989 2026
1 A bill to be entitled
2 An act relating to motor vehicle manufacturers,
3 importers, distributors, and franchised motor vehicle
4 dealers; amending s. 320.64, F.S.; amending subsection
5 (16) to clarify when a licensee may reject the
6 ownership succession of a motor vehicle dealer;
7 amending (36)(a) to clarify what motor vehicles a
8 licensee must repurchase from a motor vehicle dealer
9 upon termination of a franchise agreement; adding
10 subsection (44) to provide that a licensee that
11 distributes more than 1,000 motor vehicles of a
12 particular line make to dealers in the state within
13 any 12-month period must have established a network of
14 at least three independent motor vehicle dealers in
15 the state; amending s. 320.643; amending
16 subsections(1) and (2) to clarify when a licensee may
17 reject a proposed change in ownership; providing an
18 effective date.
19
20 Be It Enacted by the Legislature of the State of Florida:
21
22 Section 1. Subsections (16) and (36) of section 320.64,
23 Florida Statutes, is amended to read, and subsection (44) is
24 added to that section to read:
25 320.64 Denial, suspension, or revocation of license;
26 grounds.—A license of a licensee under s. 320.61 may be denied,
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PCS for HB 989 2026
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) Notwithstanding the terms of any franchise agreement,
37 the applicant or licensee prevents or refuses to accept the
38 succession to any interest in a franchise agreement by any legal
39 heir or devisee under the will of a motor vehicle dealer or
40 under the laws of descent and distribution of this state;
41 provided, the applicant or licensee is not required to accept a
42 succession: (i) where such heir or devisee does not meet
43 licensee's written, reasonable, and uniformly applied minimal
44 standard qualifications for dealer applicants; (ii) or which,
45 after notice and administrative hearing pursuant to chapter 120,
46 is demonstrated to be detrimental to the public interest or to
47 the representation of the applicant or licensee; or (iii) where
48 the direct result of such succession will cause the applicant or
49 licensee to be in violation of subsection (44). Nothing
50 contained herein, however, shall prevent a motor vehicle dealer,
51 during his or her lifetime, from designating any person as his
52 or her successor in interest by written instrument filed with
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PCS for HB 989 2026
53 and accepted by the applicant or licensee. A licensee who
54 rejects the successor transferee under this subsection shall
55 have the burden of establishing in any proceeding where such
56 rejection is in issue that the rejection of the successor
57 transferee complies with this subsection.
58 (36)(a) Notwithstanding the terms of any franchise
59 agreement, in addition to any other statutory or contractual
60 rights of recovery after the voluntary or involuntary
61 termination, cancellation, or nonrenewal of a franchise, failing
62 to pay the motor vehicle dealer, as provided in paragraph (d),
63 the following amounts:
64 1. The net cost paid by the dealer for each new motor
65 vehicle other than motorcycles car or truck in the dealer's
66 inventory with mileage of 2,000 miles or less, or a each new
67 motorcycle in the dealer's inventory with mileage of 100 miles
68 or less, exclusive of mileage placed on the motor vehicle before
69 it was delivered to the dealer.
70 2. The current price charged for each new, unused,
71 undamaged, or unsold part or accessory that:
72 a. Is in the current parts catalog and is still in the
73 original, resalable merchandising package and in an unbroken
74 lot, except that sheet metal may be in a comparable substitute
75 for the original package; and
76 b. Was purchased by the dealer directly from the
77 manufacturer or distributor or from an outgoing authorized
78 dealer as a part of the dealer's initial inventory.
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79 3. The fair market value of each undamaged sign owned by
80 the dealer which bears a trademark or trade name used or claimed
81 by the applicant or licensee or its representative which was
82 purchased from or at the request of the applicant or licensee or
83 its representative.
84 4. The fair market value of all special tools, data
85 processing equipment, and automotive service equipment owned by
86 the dealer which:
87 a. Were recommended in writing by the applicant or
88 licensee or its representative and designated as special tools
89 and equipment;
90 b. Were purchased from or at the request of the applicant
91 or licensee or its representative; and
92 c. Are in usable and good condition except for reasonable
93 wear and tear.
94 5. The cost of transporting, handling, packing, storing,
95 and loading any property subject to repurchase under this
96 section.
97 (44)(a) The applicant or licensee has directly or
98 indirectly distributed 1,000 or more motor vehicles of a
99 particular line-make to motor vehicle dealers in the state
100 during any 12-month period, and has directly or indirectly
101 distributed more than 33.33 percent of those same line-make
102 motor vehicles during that 12-month period to one motor vehicle
103 dealer or to multiple motor vehicle dealers that share common
104 ownership or control. For purposes of this subsection, a motor
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105 vehicle dealer shares common ownership or control with another
106 motor vehicle dealer if:
107 1. It is directly or indirectly controlled by or has more
108 than 30 percent of its equity interest directly or indirectly
109 owned by another motor vehicle dealer; or
110 2. It has more than 30 percent of its equity interest
111 directly or indirectly controlled or owned by one or more
112 persons who also directly or indirectly control or own more than
113 30 percent of the equity interests of another motor vehicle
114 dealer.
115 (b) This subsection shall not apply to any line-make of
116 motor vehicle for which there exists a licensed franchised
117 dealer in the state as of January 1, 2026, or to an applicant or
118 licensee that is not prohibited by s. 320.645 from owning or
119 operating a motor vehicle dealer.
120 A motor vehicle dealer who can demonstrate that a violation of,
121 or failure to comply with, any of the preceding provisions by an
122 applicant or licensee will or may adversely and pecuniarily
123 affect the complaining dealer, shall be entitled to pursue all
124 of the remedies, procedures, and rights of recovery available
125 under ss. 320.695 and 320.697.
126 Section 2. Subsections (1) and (2) of section 320.643,
127 Florida Statutes, are amended to read:
128 320.643 Transfer, assignment, or sale of franchise
129 agreements.—
130 (1)(a) Notwithstanding the terms of any franchise
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131 agreement, a licensee shall not, by contract or otherwise, fail
132 or refuse to give effect to, prevent, prohibit, or penalize or
133 attempt to refuse to give effect to, prohibit, or penalize any
134 motor vehicle dealer from selling, assigning, transferring,
135 alienating, or otherwise disposing of its franchise agreement to
136 any other person or persons, including a corporation established
137 or existing for the purpose of owning or holding a franchise
138 agreement, unless the licensee proves at a hearing pursuant to a
139 complaint filed by a motor vehicle dealer under this section
140 that the sale, transfer, alienation, or other disposition: (i)
141 is to a person who is not, or whose controlling executive
142 management is not, of good moral character; or (ii) is to a
143 person who does not meet the written, reasonable, and uniformly
144 applied standards or qualifications of the licensee relating to
145 financial qualifications of the transferee and business
146 experience of the transferee or the transferee's executive
147 management; or (iii) would directly cause the licensee to be in
148 violation of s. 320.64(44). A motor vehicle dealer who desires
149 to sell, assign, transfer, alienate, or otherwise dispose of a
150 franchise shall notify, or cause the proposed transferee to
151 notify, the licensee, in writing, setting forth the prospective
152 transferee's name, address, financial qualifications, and
153 business experience during the previous 5 years. A licensee who
154 receives such notice may, within 60 days following such receipt,
155 notify the motor vehicle dealer, in writing, that the proposed
156 transferee is not a person qualified to be a transferee under
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157 this section and setting forth the material reasons for such
158 rejection. Failure of the licensee to notify the motor vehicle
159 dealer within the 60-day period of such rejection shall be
160 deemed an approval of the transfer. No such transfer,
161 assignment, or sale shall be valid unless the transferee agrees
162 in writing to comply with all requirements of the franchise then
163 in effect, but with the ownership changed to the transferee.
164 (b) A motor vehicle dealer whose proposed sale is rejected
165 may, within 60 days following such receipt of such rejection,
166 file with the department a complaint for a determination that
167 the proposed transferee has been rejected in violation of this
168 section. The licensee has the burden of proof with respect to
169 all issues raised by the complaint. The department shall
170 determine, and enter an order providing, that the proposed
171 transferee is either qualified or is not and cannot be qualified
172 for specified reasons, or the order may provide the conditions
173 under which a proposed transferee would be qualified. If the
174 licensee fails to file such a response to the motor vehicle
175 dealer's complaint within 30 days after receipt of the
176 complaint, unless the parties agree in writing to an extension,
177 or if the department, after a hearing, renders a decision other
178 than one disqualifying the proposed transferee, the franchise
179 agreement between the motor vehicle dealer and the licensee is
180 deemed amended to incorporate such transfer or amended in
181 accordance with the determination and order rendered, effective
182 upon compliance by the proposed transferee with any conditions
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183 set forth in the determination or order.
184 (2)(a) Notwithstanding the terms of any franchise
185 agreement, a licensee shall not, by contract or otherwise, fail
186 or refuse to give effect to, prevent, prohibit, or penalize, or
187 attempt to refuse to give effect to, prevent, prohibit, or
188 penalize, any motor vehicle dealer or any proprietor, partner,
189 stockholder, owner, or other person who holds or otherwise owns
190 an interest therein from selling, assigning, transferring,
191 alienating, or otherwise disposing of, in whole or in part, the
192 equity interest of any of them in such motor vehicle dealer to
193 any other person or persons, including a corporation established
194 or existing for the purpose of owning or holding the stock or
195 ownership interests of other entities, unless the licensee
196 proves at a hearing pursuant to a complaint filed by a motor
197 vehicle dealer under this section that the sale, transfer,
198 alienation, or other disposition: (i) is to a person who is not,
199 or whose controlling executive management is not, of good moral
200 character; or (ii) would directly cause the licensee to be in
201 violation of s. 320.64(44). A motor vehicle dealer, or any
202 proprietor, partner, stockholder, owner, or other person who
203 holds or otherwise owns an interest in the motor vehicle dealer,
204 who desires to sell, assign, transfer, alienate, or otherwise
205 dispose of any interest in such motor vehicle dealer shall
206 notify, or cause the proposed transferee to so notify, the
207 licensee, in writing, of the identity and address of the
208 proposed transferee. A licensee who receives such notice may,
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209 within 60 days following such receipt, notify the motor vehicle
210 dealer in writing that the proposed transferee is not a person
211 qualified to be a transferee under this section and setting
212 forth the material reasons for such rejection. Failure of the
213 licensee to notify the motor vehicle dealer within the 60-day
214 period of such rejection shall be deemed an approval of the
215 transfer. Any person whose proposed sale of stock is rejected
216 may file within 60 days of receipt of such rejection a complaint
217 with the department alleging that the rejection was in violation
218 of the law or the franchise agreement. The licensee has the
219 burden of proof with respect to all issues raised by such
220 complaint. The department shall determine, and enter an order
221 providing, that the proposed transferee either is qualified or
222 is not and cannot be qualified for specified reasons; or the
223 order may provide the conditions under which a proposed
224 transferee would be qualified. If the licensee fails to file a
225 response to the motor vehicle dealer's complaint within 30 days
226 of receipt of the complaint, unless the parties agree in writing
227 to an extension, or if the department, after a hearing, renders
228 a decision on the complaint other than one disqualifying the
229 proposed transferee, the transfer shall be deemed approved in
230 accordance with the determination and order rendered, effective
231 upon compliance by the proposed transferee with any conditions
232 set forth in the determination or order.
233 (b) Notwithstanding paragraph (a), a licensee may not
234 reject a proposed transfer of a legal, equitable, or beneficial
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235 interest in a motor vehicle dealer to a trust or other entity,
236 or to any beneficiary thereof, which is established by an owner
237 of any interest in a motor vehicle dealer for purposes of estate
238 planning, if the controlling person of the trust or entity, or
239 the beneficiary, is of good moral character.
240
241 Section 3. This act shall take effect July 1, 2026.
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- SHA-256
- 630d59b9b34bbe6900fae88a846798507e9f4a38a35e6cc0f8cd65954c6ac178
- Original
- www.flhouse.gov