MS HB1477

Requires manufacturers to compensate new motor vehicle dealers for all labor and parts needed to perform federal safety or emissions recall repairs at reasonable rates.

Mandates manufacturers provide monthly compensation at a prorated rate of at least 1% of vehicle value per month for used vehicles under stop-sale or do-not-drive orders when repair parts remain unavailable for 30+ days, beginning 30 days after the order is issued.

Vehicle value for compensation purposes is determined using the average trade-in value from an independent third-party guide for the recalled vehicle's year, make, and model.

Prohibits manufacturers from reducing dealer compensation, removing dealers from incentive programs, or otherwise penalizing individual dealers solely because they submitted recall reimbursement claims.

Applies only to used vehicles subject to federal safety or emissions recalls held by franchised dealers, whether in inventory when the stop-sale order was issued or acquired as trade-ins after the order was issued.