Earlier this year in March, Mississippi Governor Phil Bryant signed and approved House Bill 1000, which requires all auto dealers operating in the state to post a $25,000 surety bond.
Prior to this amendment, only new motor vehicle dealers were required to be bonded. The legislation now extends to wholesale dealers and used auto dealers as well. If a principal (dealer owner) has multiple businesses throughout the state, this bill also introduces a “blanket bond” corporate option of $100,000 instead of bonding each location at $25,000 each.
In addition to the new surety bond amendments, this law also allows motor vehicle wholesale dealers in Mississippi to be agents of the Department of Revenue. Surety bonds for such agents are not to exceed $25,000—an increase from the previous $15,000.
Dealers failing to comply with the new requirements are at risk of operating and doing business illegally. Principals must remain in compliance with all provisions stated in the Mississippi Motor Vehicle Commission Law Section 62-21-13 of the Mississippi Code of 1972.
This bill is effective as of July 1, 2015.
Photo by frankieleon (CC BY 2.0)