Mississippi 2023 Regular Session

Mississippi Senate Bill SB2455

Introduced

1/16/23

Refer

1/16/23

Failed

1/31/23

Caption

Motor vehicle sales and distribution; provide for independence of dealership tier.

Impact

This bill is structured to influence state laws regarding the operation of motor vehicle dealerships significantly. By providing that manufacturers and distributors cannot own or control dealerships, the legislation is designed to safeguard independent dealers’ interests and foster a competitive market. It further outlines specific procedures that must be followed when a dealership's franchise agreement allows for a right of first refusal by the manufacturer. These adjustments aim to create a more equitable business environment for local dealers, promoting their ability to thrive without the dominating presence of larger entities.

Summary

Senate Bill 2455 aims to amend sections of the Mississippi Code of 1972 concerning motor vehicle sales and distribution. The primary goal of this bill is to enhance the independence of motor vehicle dealership operations from the ownership or control of manufacturers, factory branches, or distributors. It introduces specific exceptions related to ownership, ensuring that manufacturers cannot directly control a dealership for the same type of vehicle they produce or distribute. This legislative effort is seen as a method to fortify local dealerships by preventing corporate entities from exerting undue influence over local business operations.

Contention

Nonetheless, there may be contention surrounding the limits placed on manufacturers regarding their ownership and control. Some proponents may argue that this could stifle investment and innovations in the dealership network, particularly concerning new technologies like electric vehicles. Furthermore, existing dealers might be concerned about how these regulations could impact their relationship with manufacturers, particularly regarding license approvals, bonding requirements, and insurance coverages as outlined in the amended sections of the Mississippi Code.