House Bill 581

AN ACT TO CREATE A NEW SECTION TO BE CODIFIED AS SECTION 63-17-118, MISSISSIPPI CODE OF 1972, TO PROVIDE THE COMPENSATION THAT A MANUFACTURER OR DISTRIBUTOR MUST PAY TO A MOTOR VEHICLE DEALER UPON ANY TERMINATION, CANCELLATION, REFUSAL TO CONTINUE, OR REFUSAL TO RENEW ANY FRANCHISE OR ANY DISCONTINUATION OF ANY LINE OR MAKE OF MOTOR VEHICLE OR PARTS ESSENTIAL TO SUCH LINE OR MAKE; TO AMEND SECTION 63-17-55, MISSISSIPPI CODE OF 1972, TO DEFINE CERTAIN TERMS; TO AMEND SECTION 63-17-73, MISSISSIPPI CODE OF 1972, TO PROHIBIT MOTOR VEHICLE DEALER OR MOTOR VEHICLE SALESMAN FROM SELLING EXTENDED SERVICE CONTRACT, EXTENDED MAINTENANCE PLAN OR SIMILAR PRODUCT THAT IS NOT OFFERED, ENDORSED OR SPONSORED BY A MANUFACTURER OR DISTRIBUTOR WITHOUT DISCLOSING TO THE CONSUMER, ORALLY AND IN WRITING, THAT THE OFFERED PRODUCT IS NOT PROVIDED OR SUPPORTED BY A MANUFACTURER OR DISTRIBUTOR; TO PROHIBIT MANUFACTURERS OR DISTRIBUTORS FROM REQUIRING A MOTOR VEHICLE DEALER, BY FRANCHISE AGREEMENT OR OTHERWISE, OR AS A CONDITION TO THE RENEWAL OR CONTINUATION OF A FRANCHISE AGREEMENT, TO MATERIALLY CHANGE HIS METHOD OF CONDUCTING BUSINESS; TO PROHIBIT A MANUFACTURER OR DISTRIBUTOR FROM CONDITIONING THE SALE, TRANSFER, RELOCATION OR RENEWAL OF A FRANCHISE OR DEALER AGREEMENT, OR TO CONDITION SALES, SERVICE, PARTS OR FINANCE INCENTIVES UPON A SITE-CONTROL AGREEMENT; TO PROHIBIT A MANUFACTURER OR DISTRIBUTOR FROM ASSIGNING OR CHANGING A MOTOR VEHICLE DEALER'S MARKET AREA UNDER THE FRANCHISE OR MOTOR VEHICLE DEALER'S AGREEMENT ARBITRARILY OR WITHOUT DUE REGARD TO THE PRESENT OR PROJECTED FUTURE PATTERN OF MOTOR VEHICLE SALES AND REGISTRATIONS WITHIN THE MOTOR VEHICLE DEALER'S MARKET AREA; TO PROHIBIT A MANUFACTURER OR DISTRIBUTOR FROM ESTABLISHING ANY PERFORMANCE STANDARD OR PROGRAM FOR MEASURING MOTOR VEHICLE DEALER'S PERFORMANCE THAT MAY HAVE A MATERIAL IMPACT ON A MOTOR VEHICLE DEALER THAT IS NOT FAIR, REASONABLE AND EQUITABLE, OR FROM APPLYING ANY SUCH STANDARD OR PROGRAM TO A MOTOR VEHICLE DEALER IN A MANNER THAT IS NOT FAIR, REASONABLE AND EQUITABLE; TO PROHIBIT A MANUFACTURER OR DISTRIBUTOR FROM UTILIZING CERTAIN METHODS TO REQUIRE ANY NEW MOTOR VEHICLE DEALER TO SELL, OFFER TO SELL OR SELL EXCLUSIVELY AN EXTENDED SERVICE CONTRACT, EXTENDED MAINTENANCE PLAN OR SIMILAR PRODUCT OFFERED OR ENDORSED OR SPONSORED BY THE MANUFACTURER OR DISTRIBUTOR; TO PROHIBIT A MANUFACTURER OR DISTRIBUTOR FROM REQUIRING A MOTOR VEHICLE DEALER TO PROVIDE ITS CUSTOMER LISTS OR SERVICE FILES TO THE MANUFACTURER OR DISTRIBUTOR, UNLESS NECESSARY FOR CERTAIN PURPOSES; TO PROHIBIT A MANUFACTURER OR DISTRIBUTOR FROM RELEASING A MOTOR VEHICLE DEALER'S NONPUBLIC CUSTOMER INFORMATION TO ANOTHER MOTOR VEHICLE DEALER UNLESS THE FRANCHISE HAS BEEN TERMINATED, THE CUSTOMER HAS RELOCATED TO AN ADDRESS THAT IS OUTSIDE OF THE MOTOR VEHICLE DEALER'S MARKET AREA, THE CUSTOMER HAS NOT RETURNED TO THE SELLING DEALER FOR SERVICES IN EXCESS OF 24 MONTHS, OR THE CUSTOMER HAS REQUESTED TO ALLOW THE INFORMATION TO BE SHARED WITH ANOTHER DEALER; TO PROHIBIT A MANUFACTURER OR DISTRIBUTOR FROM REQUIRING ANY MOTOR VEHICLE DEALER TO PROVIDE INSTALLMENT FINANCING WITH A SPECIFIED FINANCIAL INSTITUTION; TO AMEND SECTION 63-17-117, MISSISSIPPI CODE OF 1972, TO AUTHORIZE A MOTOR VEHICLE DEALER TO SUBMIT AN AMENDED OR SUPPLEMENTAL CLAIM WITHIN THE TIME AND MANNER REQUIRED BY THE MANUFACTURER FOR SALES INCENTIVES, SERVICE INCENTIVES, REBATES OR OTHER FORMS OF INCENTIVE COMPENSATION FOR UP TO 60 DAYS FROM THE DATE ON WHICH SUCH A CLAIM WAS SUBMITTED OR COULD HAVE BEEN SUBMITTED; TO REPEAL SECTION 63-17-141, MISSISSIPPI CODE OF 1972, WHICH PROVIDES DUTIES OF DEALERS AND MANUFACTURERS OF MOTOR VEHICLES UPON RENEWAL OF FRANCHISE AGREEMENTS; AND FOR RELATED PURPOSES.

In the House of Representatives

• Mark Baker

  Sponsor

l9n doesn't hold this bill's text yet.

In the House of Representatives Jan 20 – Feb 6

1. Jan 20Referred to the House committee on Judiciary A
2. Jan 28Reported from committee in the House: title sufficient, do pass
3. Feb 6Passed the House

In the Senate Feb 7 – Mar 5

1. Feb 7Sent to the Senate
2. Feb 14Referred to the Senate committee on Judiciary, Division A
3. Feb 27Reported from committee in the Senate: title sufficient, do pass
4. Mar 5Passed the Senate

To the Governor Mar 6 – Mar 17

1. Mar 6Returned to the House for enrolling
2. Mar 11Enrolled bill signed in the House
3. Enrolled bill signed in the Senate
4. Mar 17Approved by the Governor