MADA has received a lot of member outreach about the new dealer license background checks that took effect on January 1, 2026. We’ve been working hard to resolve this issue and wanted to provide a brief update on our efforts. Behind the scenes, MADA has been having conversations with DVS leadership, outlining our frustrations and asking the Department to interpret the law as it was intended during the legislative process. We’ve also been asking for clarity from DVS on the law’s administration and having been sharing those answers with our members. Despite our efforts, DVS did not budge in their position and are requiring dealers renewing their licenses to submit to fingerprinting and a federal background check.

MADA has also drafted legislation that will be introduced in the 2026 Legislative Session, which begins on February 17, that would explicitly state that the fingerprinting and federal background check requirements only apply to initial dealer license applications. Legislators have been empathetic to dealers’ frustrations and have expressed willingness to help fix the law. Government Affairs Director, Amanda Duerr has also been reaching out to other dealer categories affected by the law change (RV’s, motorsports, scrap metal, etc) to build a coalition to work on this issue.

Understanding our members’ deep concerns, the MADA Board met on Jan. 14 to plan our next steps. The Board approved sending the attached letter* to the Department of Public Safety Commissioner, formally requesting that DVS reverse course and interpret the law as it was presented during legislative proceedings. The Board also considered additional actions that could be taken by MADA, and we are currently exploring those options.

If you have any questions about the new dealer background check requirements or MADA’s efforts, please contact Internal Counsel Riley Horan or Government Affairs Director Amanda Duerr.

To read the letter sent, click here.