July 1, 2026, marked an important milestone for the Mississippi Automobile Dealers Association (MADA) and the state’s automotive industry: the 5th anniversary of “Operation 47” and the enactment of House Bill 746, one of MADA’s most important legislative achievements to date.

This legislation was needed to protect the rights of automobile dealers and to ensure fair compensation for technicians performing repairs on vehicles still under the manufacturer’s warranty.

The Backstory

Operation 47 was the internal code name for MADA’s strategic effort to enact a law requiring automotive manufacturers to reimburse dealers at retail rates for parts and labor on warranty work. Five years ago, Mississippi stood as one of the few remaining states where dealers weren’t fairly compensated for warranty work.

The goal of Operation 47 was clear and direct: Join the 46 other states that already had such protections in place, requiring automotive manufacturers to pay true retail rates to dealerships for parts and labor when repairing customers’ automobiles covered under the factory warranty.

The Strategy

Manufacturers were, of course, reticent to pay retail rates for warranty parts and labor, so legislation was necessary. MADA worked directly with manufacturers’ representatives to reach an agreement on legislative language.

The Mississippi dealer body rallied behind the legislative effort with a unified, statewide voice. By advocating in the halls of the Capitol, they secured overwhelming support from both the Mississippi House of Representatives and Senate. Gov. Tate Reeves signed HB 746 into law on May 6, 2021, delivering a major win for every dealership across our state.

The Results

The law has given dealers a clear, structured process to establish fair retail rates for warranty parts and labor while securing fair compensation for hard-working service technicians.

Why It Matters

The passage of HB 746 remains one of the most significant legislative victories in MADA’s history. As we look back on five years under this law, Operation 47 serves as a powerful reminder of what MADA can accomplish when Mississippi dealers stand together.

MADA Recommends Armatus for Warranty Reimbursement

Five years ago, during the fight to pass a warranty reimbursement law, one company proved invaluable to MADA: Armatus Dealer Uplift. Joe Jankowski and his team at Armatus provided critical knowledge and counsel that MADA relied on to draft the legislation.

MADA strongly endorses Armatus as the preferred provider for warranty reimbursement. Their unparalleled expertise working with dealers and manufacturers, as well as their ongoing support of MADA, makes them an outstanding partner for our members.

Explore what Armatus can do for your dealership with no risk and no obligation:

• Free Analysis: Armatus will analyze your DMS data at no cost and provide an evaluation of your potential profit.
• Performance-Based Service: Armatus only gets paid when a dealer’s submission is successfully approved.

Watch a quick video highlighting Armatus’ track record of success for dealers.