Automobile Dealer License Requirements

How does Florida regulate and authorize licenses?   

A “license” to regulate professions and occupations means any permit, registration, certificate, or license issued in Florida. An occupational license is a privilege accorded by the state or its subdivisions to conduct a business at a particular location and is not a property right protected by substantive due process; the denial of such license does not prevent the business owner from pursuing a lawful occupation but merely stops the business from operating at a particular location. Ammons v. Okeechobee County, 710 So. 2d 641 (Fla. 4th DCA 1998).  

On July 1, 2021, the Florida Legislature passed Section 163.211 into law, which prevents any county, municipality, or other political subdivision of Florida from implementing additional licensing requirements for most occupations. Therefore, a prospective applicant only needs to satisfy state statutory requirements. 

Need help receiving, renewing, or defending your license? Schedule your consultation today with a top administrative law and licensing attorney.  

Which laws and regulations apply to automobile dealer licenses in Florida?  

The Department of Highway Safety and Motor Vehicles (FLHSMV) regulates automobile dealer licenses in Florida. They derive their authority from Florida Statutes Chapter 320, specifically Section 320.27, which outlines licensing requirements for motor vehicle dealers. In addition, the Florida Administrative Code (FAC) also contains rules and regulations for dealer licensing, including Chapter 15C-7, which provides further guidance on licensing procedures, fees, and requirements. 

In addition to state laws and regulations, federal law plays a role in automobile dealer licensing. For example, the Federal Trade Commission (FTC) enforces federal consumer protection laws that impact automobile dealers, such as the Truth in Lending Act and the Used Car Rule. 

What are the application and retention requirements for automobile dealer licenses in Florida? 

Applicants must fulfill several criteria to apply for an automobile dealer license in Florida. First, they must determine the type of license required, as Section 320.27, Florida Statutes specifies different categories, such as franchise, independent, and wholesale dealers. Next, applicants must complete a pre-licensing dealer training course approved by the FLHSMV. 

Additionally, applicants must secure a permanent business location that meets zoning requirements and obtain a sales tax number from the Florida Department of Revenue. A surety bond or irrevocable letter of credit is also required, with the amount determined by the license type sought. Finally, applicants must submit a completed application form and the appropriate fees. 

To maintain an automobile dealer license over time, licensees must comply with ongoing requirements, such as renewing their license annually as stated in Section 320.27(9), Florida Statutes, and keeping their surety bond or letter of credit current. Dealers must also adhere to federal and state advertising guidelines and ensure that all employees who engage in sales activities have a valid sales associate license. Moreover, licensees must maintain proper records, as outlined in Rule 15C-7.012, Florida Administrative Code, which includes preserving documents related to vehicle acquisition, sale, and ownership transfer. 

Furthermore, dealers must follow all relevant consumer protection laws, both state and federal. For instance, Florida dealers must adhere to Florida’s Deceptive and Unfair Trade Practices Act (FDUTPA) and federal regulations, such as the Truth in Lending Act and the Used Car Rule.  

Automobile dealers in Florida must also comply with the Florida Administrative Code Chapter 15C-14 regulations related to temporary tags. In addition, they must ensure that all vehicles sold are titled and registered under the law. 

To determine whether you meet the requirements for an automobile dealer license, please contact our office to set up your initial consultation. 

Can the FLHSMV’s license decision be appealed?  

Yes, an adverse license decision made by the FLHSMV is appealable. The authority for appealing such decisions comes from the Florida Administrative Procedure Act (APA), Chapter 120 of the Florida Statutes. The APA establishes the framework for challenging agency actions, such as licensing decisions, through administrative hearings and judicial review. The right to appeal is granted under Florida Statutes §120.569 and §120.57.  

If an applicant or licensee receives an adverse decision from the FLHSMV, they may request an administrative hearing to challenge it. The request for a hearing must be submitted within the timeframe specified in the agency’s notice, which is generally 15 days from the date of the notice, as provided in Section 120.569(2)(a), Florida Statutes. 

The administrative hearing process commences with submitting a petition for a hearing to the agency. The petition must comply with the requirements outlined in Rule 28-106.201, Florida Administrative Code. If the petitioner qualifies for an administrative hearing, the case is referred to the Division of Administrative Hearings (DOAH) and assigned to an administrative law judge (ALJ). 

The ALJ conducts the hearing, like a trial, with both parties presenting evidence and testimony. After the hearing, the ALJ issues a recommended order, which includes findings of fact, conclusions of law, and a recommendation for a final decision. The FLHSMV then reviews the recommended order and issues a final order, either adopting, modifying, or rejecting the ALJ’s recommendations. 

Suppose the petitioner is unsatisfied with the FLHSMV’s final order. In that case, they can seek judicial review by filing a notice of appeal with the appropriate District Court of Appeal, as provided in Section 120.68, Florida Statutes. The court reviews the case to determine if the agency’s decision is supported by competent, substantial evidence and complies with the law. 

Have more questions about a professional licensing-related situation?  

Crucially, this overview of automobile dealer licenses does not begin to cover all the laws implicated by this issue or the factors that may compel the application of such laws. Every case is unique, and the laws can produce different outcomes depending on the individual circumstances. 

Jimerson Birr attorneys guide our clients to help make informed decisions while ensuring their rights are respected and protected. Our lawyers are highly trained and experienced in the nuances of the law, so they can accurately interpret statutes and case law and holistically prepare individuals or companies for their legal endeavors. Through this intense personal investment and advocacy, our lawyers will help resolve the issue’s complicated legal problems efficiently and effectively. 

Having a Jimerson Birr attorney on your side means securing a team of seasoned, multi-dimensional, cross-functional legal professionals. Whether it is a transaction, an operational issue, a regulatory challenge, or a contested legal predicament that may require court intervention, we remain a tireless advocate every step of the way. Being a value-added law firm means putting the client at the forefront of everything we do. We use our experience to help our clients navigate even the most complex problems and come out the other side triumphant. 

If you want to understand your case, the merits of your claim or defense, potential monetary awards, or the amount of exposure you face, you should speak with a qualified Jimerson Birr lawyer. Our experienced team of attorneys is here to help. Call Jimerson Birr at (904) 389-0050 or use the contact form to set up a consultation.