Advocacy for
Minnesota Dealerships
Stay informed and protected with MADA’s legal resources and legislative efforts
Legislative Advocacy & Legal Resources
Advocating for Minnesota’s Auto Industry
MADA is your voice at the Capitol, advocating on legislative issues that directly impact Minnesota dealerships. From franchise protections and compliance requirements to tax policy and EV readiness, we work to shape fair legislation while keeping members informed. Our goal is to ensure you have the clarity and support needed to navigate changes with confidence.
Key Legislative Topics
MADA tracks and engages on legislative activity that shapes the business environment for Minnesota’s auto dealers. From franchise protections to emerging EV policies, we provide updates on the key issues moving through the Capitol. Stay informed on how these developments impact your dealership and the industry.
Title and Registration
Minnesota’s title and registration system is a foundational link between dealerships, customers, and the state. Because vehicle titling is governed by state statute, regulatory clarity and operational consistency are critical for dealers and consumers alike.
Warranty Reimbursement
Warranty repair work is an essential customer service and dealers must be fairly and fully reimbursed by manufacturers under franchise agreements.
Land Use
Real estate decisions — zoning, land-use entitlements, redevelopment authority, and local ordinances — directly impact where and how dealers can build, expand, or optimize their facilities.
Dealer Operations
Day-to-day operational regulations—covering advertising, disclosure, pricing, recordkeeping, consumer protection, franchise law, and compliance—are complex and ever-shifting.
Employment Laws
Labor and employment statutes — from wages and overtime to, leave, hiring, and workplace safety — directly affect dealership staffing and costs.
Electric Vehicles
Electric vehicles (EVs) represent both opportunity and challenge: new inventory, training costs, charging infrastructure, and evolving state/federal incentives all affect dealers’ strategies.
Latest Updates
MADA protects Minnesota auto dealers by engaging on legislative issues important toyour business’ operations.
New Deductions for “Qualified Overtime Compensation”
IRS Issues FAQs on the New Deduction for “Qualified Overtime Compensation” — What Dealerships Need to Know The “Big Beautiful Bill Act” created a new above-the-line federal income tax deduction for certain overtime compensation, often referred to as the “No Tax on...
NEW AD STANDARD REGARDING RETIRED COURTESY VEHICLES
The MADA Advertising Standards Steering Committee has adopted a new Advertising Standard addressing how dealers advertise retired courtesy vehicles. The standard received the support of the MADA Board and will take effect March 1, 2026.Below is the full text of the...
PFAS is Top Priority
As for MADA, we are pleased we no longer have to advance legislation to address the dealer license background check issue. Our top legislative priority for 2026 will be fixing PFAS reporting requirements. Currently, manufacturers will be required to report to the...
Session Starts February 17
The 2026 Legislative Session begins on February 17, and there will be many changes as lawmakers convene. Opening day promises to be somber, with it being the first day back in session since the assassination of former Speaker Melissa Hortman. Due to increased threats...
MADA Secures Positive Outcome for Dealer License Renewals
MADA spent the past several months in communication with DVS, asking the department to interpret the new dealer license background check law consistent with how it was conveyed to lawmakers and stakeholders: applying only to initial applications. We appealed to...
ComplyAuto Webinar: 2026 Automated Deal Verification Update
New compliance requirements are coming — and dealerships need to understand what automated deal verification will mean for operations, documentation, and risk exposure. Our partner, ComplyAuto, is hosting a timely webinar to walk Minnesota dealers through what’s...
Legal Resources
Franchised dealers navigate daily requirements spanning franchise/manufacturer relations, advertising and pricing disclosures, sales and F&I compliance, titling and registration, privacy and data security, employment rules, environmental obligations, warranties/recalls, and recordkeeping. This page highlights the most common obligations and best practices—so your store stays compliant and focused on serving customers.
Advertising Standards
Find all the documents for the Minnesota Automobile Advertising Program, plus Federal rules covering claims about leasing, “free” items, and fuel economy.
Employment Laws
Stay up to date on wage laws, hiring practices, workplace policies, new state rules like MN Paid Leave and ESST, and how to correctly classify employees under the FLSA.
Consumer Issues
Everything you need on key consumer protection mandates, including Federal rules for data privacy and identity theft prevention, required credit score disclosures in financing, mandated damage disclosure laws, and adherence to state warranty and Lemon Law statutes.
Motor Vehicle Franchise Protection Act
Find information on warranty reimbursement rules, compensation for vehicles under recall, and protection against unfair practices.
Dealer License and Procedures
Find the state dealer licensing laws, a link to the DVS website for forms and important information, and FAQs for using dealer plates.
Parts & Service
Get legal guidance on repair estimates and invoices, shop practices, and mechanic’s liens.
Frequently Asked Questions
Quick answers to common legal concerns facing Minnesota dealerships.
Is there a cap on the doc fee?
Yes. Effective July 1, 2025, the maximum document fee is the lesser of $350 or 10% of the value of the sale or lease. This is a cap — a dealer may charge any amount up to that limit, including no fee at all.
Does any law prohibit the sale of a used vehicle under a recall or stop-sale order?
No. Neither Minnesota nor federal law prohibits selling a used vehicle under a recall or stop-sale. However, your manufacturer may impose different requirements, so consult your franchise agreement and OEM policies.
Do I need to title and register a courtesy vehicle in the dealership’s name if I use dealer plates?
No. If you place dealer plates on a courtesy vehicle, you do not need to title or register the vehicle in the dealership’s name.
Can a manufacturer require me to accept delivery of a vehicle I do not want?
No. Minnesota law prohibits manufacturers from requiring dealers to order or accept delivery of any new motor vehicle the dealer has not voluntarily ordered. Note: This law does not override reasonable franchise provisions that require a dealer to market a representative line of vehicles that the manufacturer publicly advertises.
Is there a statutory cap on a shop supply fee?
No. Minnesota law does not cap the shop supply fee. However, you should ensure that the amount charged is proportional to the cost of materials used. Any required shop supply fee must be included in the advertised or quoted service price.
Do I need to keep original hard copies of vehicle transaction records?
No. In most cases, you may retain electronic copies of original documents. However, your dealership must receive approval from DVS using this form:
Dealer Electronic Records Form (2024-12)
“MADA’s legislative affairs team is an invaluable asset to our dealership. It’s an incredible partnership that allows us to focus on what we are best at: selling and serving automobiles. Their tireless advocacy of the issues that impact us all at the State Capitol ensures our interests are protected, from franchise laws to fair regulations, again allowing us to focus on running our business with confidence today and in the future.”
Legal Questions? Ask Here
MADA members can submit legal inquiries to our in-house legal team for guidance on matters related to dealership operations, regulatory compliance, consumer issues, and more. Please complete the following form so our team can respond accurately and efficiently.