Mississippi Motor Vehicle Commission Law; bring forward certain sections of.

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To: Business and Commerce
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Steverson

HOUSE BILL NO. 1451

AN ACT TO BRING FORWARD SECTIONS 63-17-75 AND 63-17-109, 1
MISSISSIPPI CODE OF 1972, WHICH ARE PROVISIONS OF THE "MISSISSIPPI 2
MOTOR VEHICLE COMMISSION LAW", FOR THE PURPOSES OF POSSIBLE 3
AMENDMENT; AND FOR RELATED PURPOSES. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 5
SECTION 1. Section 63-17-75, Mississippi Code of 1972, is 6
brought forward as follows: 7
63-17-75. (1) Within ninety (90) days after July 1, 1970, 8
all persons who on July 1, 1970, are engaged in a business or 9
occupation for which a license is required under the Mississippi 10
Motor Vehicle Commission Law shall make application on forms 11
prescribed by the commission for their respective licenses. All 12
such persons shall be permitted, without a license, to continue to 13
engage in the business or occupation for which a license is 14
applied for until the license is either granted or, in case it is 15
denied, until the applicant has exhausted or has had an 16
opportunity to exhaust all of his remedies under Section 63-17-99. 17
No person not engaged in a business or occupation requiring such a 18
license on July 1, 1970, shall be permitted to engage in such 19
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business or occupation until he shall have first obtained a 20
license to engage in such business or occupation. 21
(2) (a) Applications for licenses shall: 22
(i) Be verified by the oath or affirmation of the 23
applicants; 24
(ii) Be on forms prescribed by the commission and 25
furnished to such applicants; and 26
(iii) Contain such information as the commission 27
deems necessary to enable it to fully determine the qualifications 28
and eligibility of the several applicants to receive the license 29
or licenses applied for. 30
(b) The commission shall require that there be set 31
forth in each application information relating to: 32
(i) The applicant's financial standing; 33
(ii) The applicant's business integrity; 34
(iii) Whether the applicant has an established 35
place of business and is primarily engaged in the pursuit, 36
avocation or business for which a license or licenses is applied 37
for; and 38
(iv) Whether the applicant is able to properly 39
conduct the business for which a license or licenses is applied 40
for, and such other pertinent information consistent with the 41
safeguarding of the public interest and public welfare. 42
(c) In addition to the requirements of subsection (1) 43
and paragraphs (a) and (b) of this subsection (2), applications 44
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for license as a motor vehicle dealer shall be accompanied by the 45
filing, with the commission, of a bona fide contract or franchise 46
then in effect between the applicant and a manufacturer, 47
distributor or wholesaler of the new motor vehicle or vehicles 48
proposed to be dealt in, unless such contract or franchise has 49
already been filed with the commission in connection with a 50
previous application made by such applicant, in which event the 51
applicant shall, in lieu of again filing the contract or 52
franchise, identify the contract or franchise by appropriate 53
reference and file all revisions and additions, if any, which have 54
been made to said contract or franchise. 55
(d) The applicant must furnish satisfactory evidence 56
that he or it maintains adequate space in the building or 57
structure wherein his or its established business is conducted for 58
the display of new motor vehicles, or he will have such facilities 59
within a reasonable time after receiving a license, and that he or 60
it has or will have adequate facilities in said building or 61
structure for the repair and servicing of motor vehicles and the 62
storage of new parts and accessories for same. However, the 63
failure to furnish the evidence called for in this paragraph shall 64
not constitute sufficient cause for denying a license to any motor 65
vehicle dealer who, on July 1, 1970, was an enfranchised new motor 66
vehicle dealer in this state of a manufacturer, distributor or 67
wholesaler of new motor vehicles and who continued to be such a 68
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dealer from such date until application was made for a license as 69
a motor vehicle dealer. 70
(3) (a) New applications for licenses as a new, used or 71
wholesale motor vehicle dealer shall, in addition to meeting the 72
requirements of subsections (1) and (2), be accompanied by the 73
filing with the commission of a corporate surety bond in the penal 74
sum of Twenty-five Thousand Dollars ($25,000.00) on a bond form 75
approved by the commission. However, an applicant for licenses at 76
multiple locations may choose to provide a corporate surety bond 77
in the penal sum of One Hundred Thousand Dollars ($100,000.00) 78
covering all licensed locations of the same capacity in lieu of 79
separate bonds for each location. 80
(b) The bond shall be in effect upon the applicant 81
being licensed and shall be conditioned upon his complying with 82
the provisions of the Mississippi Motor Vehicle Commission Law. 83
The bond shall be an indemnity for any loss sustained by any 84
person by reason of the acts of the person bonded when those acts 85
constitute grounds for the suspension or revocation of license. 86
The bond shall be executed in the name of the State of Mississippi 87
for the benefit of any aggrieved party. The aggregate liability 88
of the surety for any claimants, regardless of the number of years 89
this bond is in force or has been in effect, shall not exceed the 90
amount of the bond. The proceeds of the bond shall be paid upon 91
receipt by the commission of a final judgment from a Mississippi 92
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court of competent jurisdiction against the principal and in favor 93
of an aggrieved party. 94
(4) New, used and wholesale motor vehicle dealers shall be 95
required to maintain motor vehicle liability insurance providing 96
blanket coverage on vehicles operated on the public streets and 97
highways of this state, including vehicles in dealership inventory 98
unless the motor vehicle dealer's inventory does not have a motor. 99
Evidence of liability insurance for business and inventory 100
vehicles shall be filed with the application for license, and the 101
application for license shall be denied if proof of liability 102
insurance satisfactory to the Department of Revenue is not 103
provided. 104
(5) Except as expressly permitted by Section 63-17-109, no 105
motor vehicle manufacturer, factory branch, distributor, 106
distributor branch or subsidiary thereof is, directly through any 107
parent, subsidiary or affiliated entity, whether or not such motor 108
vehicle manufacturer, factory branch, distributor, distributor 109
branch or subsidiary thereof has entered into a franchise with any 110
person or entity in this state, eligible to: 111
(a) Own any ownership interest in, operate or control 112
any motor vehicle dealer or dealership in this state for the same 113
type or classification of motor vehicle that it manufactures or 114
distributes; 115
(b) Apply for a motor vehicle dealers license; or 116
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(c) Be licensed as a new motor vehicle dealer in this 117
state. 118
SECTION 2. Section 63-17-109, Mississippi Code of 1972, is 119
brought forward as follows: 120
63-17-109. (1) In the event of a proposed sale or transfer 121
of a dealership and the franchise agreement for the dealership 122
contains a right of first refusal in favor of the manufacturer or 123
distributor, notwithstanding the terms of the franchise agreement, 124
the manufacturer or distributor shall be permitted to exercise a 125
right of first refusal to acquire the dealership only if all of 126
the following requirements are met: 127
(a) The manufacturer or distributor sends by certified 128
mail, return receipt requested, or any other reliable means of 129
communication, notice of its intent to exercise its right of first 130
refusal within sixty (60) days of receipt of the executed contract 131
for the proposed sale or transfer and completed application and 132
related documents reasonably requested by the manufacturer or 133
distributor. The manufacturer or distributor shall provide the 134
application and notice of other requirements within fifteen (15) 135
days of request. In no event shall the manufacturer or 136
distributor exercise its right of first refusal more than one 137
hundred twenty (120) days after receipt of the executed contract. 138
The manufacturer or distributor and the applicant shall act in 139
good faith to provide the required information in a timely and 140
expeditious manner. 141
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(b) The exercise of the right of first refusal will 142
result in the motor vehicle dealer receiving consideration, terms 143
and conditions that are either the same as or greater than that 144
for which such dealer has contracted for in connection with the 145
proposed transaction. 146
(2) The manufacturer's or distributor's right of first 147
refusal shall not apply to a transaction involving one (1) of the 148
following: 149
(a) A designated family member or members, including 150
the spouse, child or grandchild, spouse of a child or grandchild, 151
brother, sister or parent of the dealer-operator, or one or more 152
motor vehicle dealer owners; 153
(b) A manager employed by the motor vehicle dealer in 154
the dealership during the previous five (5) years that is 155
otherwise qualified as a dealer-operator; 156
(c) A partnership or corporation controlled by any of 157
the family members of the dealer-operator; 158
(d) A trust arrangement established or to be 159
established for the purpose of allowing the new motor vehicle 160
dealer to continue to qualify as such pursuant to the 161
manufacturer's or distributor's standards, or provides for the 162
succession of the franchise agreement to designated family members 163
or qualified management in the event of the death or incapacity of 164
the dealer-operator or its principal owner or owners. 165
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(3) (a) The manufacturer or distributor shall pay the 166
reasonable expenses, including attorneys' fees which do not exceed 167
the usual, customary and reasonable fees charged for similar work 168
done for other clients, incurred by the proposed owner prior to 169
the exercise of the right of first refusal in negotiating and 170
implementing the contract for the proposed sale of the dealership. 171
The expenses and attorneys' fees shall be paid to the proposed new 172
owner at the time of the closing of the sale at which the 173
manufacturer or distributor exercises its right of first refusal. 174
(b) No payment of expenses and attorneys' fees shall be 175
required if the person claiming reimbursement has not submitted or 176
caused to be submitted an accounting of those expenses within 177
thirty (30) days after the receipt of the manufacturer's or 178
distributor's written request for the accounting. A manufacturer 179
or distributor may request the accounting before exercising its 180
right of first refusal. 181
(4) If the selling dealer discloses the manufacturer's right 182
of first refusal to the proposed owner in writing, the motor 183
vehicle dealer shall not have any liability to any person as a 184
result of a manufacturer or distributor exercising its right of 185
first refusal and the manufacturer or distributor shall assume the 186
defense of the selling motor vehicle dealer for any claims by the 187
proposed owner arising from the exercise of the right of first 188
refusal. 189
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(5) If the manufacturer or distributor does not exercise its 190
right of first refusal within the time period set forth in 191
subsection (1)(a), the manufacturer or distributor shall act upon 192
the proposed sale of the franchise promptly and in good faith but 193
in no event more than one hundred twenty (120) days after receipt 194
of the completed application and related documents reasonably 195
requested by the manufacturer or distributor. 196
(6) Neither this section nor Section 63-17-75 shall be 197
construed to prohibit any of the following: 198
(a) The ownership, operation or control by a 199
manufacturer, factory branch, distributor, distributor branch or 200
subsidiary thereof, of a dealership for a temporary period, not to 201
exceed one (1) year, during the transition from one (1) licensed 202
motor vehicle dealer to another. The commission may extend the 203
temporary ownership, operation or control period upon a showing of 204
good cause by the manufacturer, factory branch, distributor, 205
distributor branch or subsidiary thereof; 206
(b) The ownership, operation or control of a dealership 207
by a manufacturer, factory branch, distributor, distributor branch 208
or subsidiary thereof, while in a bona fide relationship with an 209
independent person, other than a manufacturer, factory branch, 210
distributor, distributor branch or an agent or affiliate thereof, 211
who has made a significant, bona fide, unencumbered initial 212
investment in the dealership that is subject to loss, and who can 213
reasonably expect to acquire full ownership of the dealership 214
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ST: Mississippi Motor Vehicle Commission Law;
bring forward certain sections of.
within a reasonable period of time, and on reasonable terms and 215
conditions, provided that a reasonable period shall be presumed to 216
not exceed eight (8) years; or 217
(c) The ownership, operation or control of not 218
more than one (1) motor vehicle dealership location within this 219
state by a manufacturer that manufactures and sells only motor 220
vehicles that are plug-in electric vehicles that do not rely on 221
any nonelectric source of power in all modes of operation, 222
provided that the dealership has been continuously licensed since 223
August 1, 2021, and provided that the ownership or controlling 224
interest in the dealership is not transferred, sold or conveyed to 225
another person required to be licensed under this title. 226
SECTION 3. This act shall take effect and be in force from 227
and after July 1, 2026. 228