MS HB1475

Creates Section 63-17-118 requiring manufacturers or distributors to pay dealers reasonable compensation upon franchise termination, including net cost of unsold vehicles with less than 750 miles, parts inventory at net cost, plus 5% handling charge and shipping costs, with payment due within 90 days.

Requires additional compensation for franchise discontinuation including 12 months of facility rent or fair market value, computer/equipment leases, manufacturer-required sign and equipment fair market value, and fair market value of the franchise itself if the line-make is discontinued in the state.

Prohibits dealers from selling extended service contracts not endorsed by manufacturers without written disclosure, and prohibits manufacturers from conditioning franchise renewal on materially changing dealer business methods, imposing site control agreements, or arbitrarily changing market areas.

Prohibits manufacturers from requiring exclusive extended service contract sales through coercion, measuring dealer performance on contract sales, requiring customer lists without legitimate purpose, releasing customer information to competing dealers, or requiring specific financing institutions.

Allows dealers 60 days to submit amended or supplemental claims for sales incentives, service incentives, and rebates, and repeals prior provisions governing franchise renewal duties; takes effect July 1, 2012.