Due to the pandemic in 2020, it has been eight years since the Mississippi legislature has had a 120-day session. Other than the first year after statewide elections, the legislature meets for 90 days. With over 3,000 bills introduced in the House and Senate combined, the task of monitoring potential threats and opportunities for the automotive industry in Mississippi is substantial.
Medicaid expansion, education and the state retirement plan dominated the agenda from start to finish. Common ground was found on the formula to fund education and some tweaks to the state retirement plan, but the House and Senate leadership were too far apart to agree on any form of Medicaid expansion. Gov. Tate Reeves remains staunchly opposed to any Medicaid expansion plans and was ready to veto any bill coming to his desk.
For MADA, this legislative session was a departure from previous years, where we were fighting for major revisions to the franchise law. However, the absence of a major campaign did not mean we reduced our presence at the Capitol. MADA’s president scrutinized every bill introduced to ensure it did not inadvertently impact franchised automobile dealerships.
In response to the alarming rise in car thefts at dealerships, MADA focused on increasing the penalties for car thieves with SB 2174. We successfully passed a bill, and on July 1, 2024, car thieves can face imprisonment of up to 30 years for stealing from a dealership with the new law signed by Gov. Tate Reeves.
Additionally, SB 2174 grants judges the authority to fine car thieves up to $20,000. This represents a significant escalation from the previous penalties, which capped fines at $10,000 and imprisonment at 20 years.
By doubling the potential fines and extending the maximum prison sentence, the new law aims to send a clear message that car theft at dealerships is a serious crime.
Lt. Gov. Delbert Hosemann was a driving force in getting a new law. “We want the vehicles to be purchased when they leave the dealership,” Hosemann said after the bill was adopted by the Senate.
Ultimately, we need law enforcement to catch the thieves and have aggressive prosecutors and judges to lock ‘em up.
The bills targeted by MADA cover a range of topics, including but not limited to antibusiness measures, workers’ compensation, taxation and regulatory matters. For instance, proposals to establish a Mississippi Department of Labor, increase workers’ compensation benefits and impose additional taxes on electric vehicles are among the key areas of concern for MADA and its members.
Below are the other bills of interest to MADA:
Car Buyers Given More Time to Obtain Their Tag
Current law requires a new owner of a vehicle to register a car and get a tag within seven working days. After July 1, 2024, buyers of new vehicles will have 30 working days to register their vehicle and obtain a tag.
Counterfeit Airbag Law
MADA worked with The Alliance for Automotive Innovation on a new law addressing counterfeit airbags in preowned vehicles. Counterfeit airbags are a national and growing concern. The counterfeit airbags are generally offered online by unscrupulous vehicle repair shops. These counterfeits are often filled with debris, such as sawdust, newspaper or nothing at all.
MADA had language put into the bill to protect franchised automobile dealers. In short, if a dealer took a vehicle on a trade and did not know that a counterfeit airbag had been installed, there would not be any criminal liability.
Maintaining a proactive stance, MADA is committed to safeguarding the gains achieved through past advocacy efforts, particularly in relation to the franchise law.
