NEW LAWS IMPORTANT TO DEALERSHIPS Effective July 1, 2023 MANUFACTURERS’ OWNERSHIP OF DEALERSHIPS Beginning July 1, 2023, HB 401 states that manufacturers cannot apply for a dealership license at the Mississippi Motor Vehicle Commission. Why Is This Important to Dealers? Without this law, any automobile manufacturer (Ford, GM, CDJR, etc.) could form an LLC with the Secretary of State and apply for a dealer’s license. HB 401 prevents an automotive manufacturer from having an unfair competitive advantage and also helps the consumer by preventing monopolies by manufacturers. What Does the Law Do? Automobile manufacturers cannot do any of the following: • Own any ownership interest in, operate or control any motor vehicle dealer or dealership in the state for the same type of classification of motor vehicle that it manufactures or distributes • Apply for a motor vehicle dealer’s license • Be licensed as a new motor vehicle dealer in the state The Tesla corporate-owned store that received a dealer’s license in 2021 will be allowed to keep its current location. This Is Important to Dealers That Are Putting Charging Stations in Public HB 1060 will allow dealerships to charge by the kilowatt hour for a customer using a charger located at the store. Without this legislation, it was illegal to resale electricity in Mississippi except for public utilities. 16
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