FIMDA tours USA: Indiana

20 October 2022

From left: Deputy Director and Senior Counsel IN Secretary of State Auto Dealer Services Division, Kyle Bonick; Director IN Secretary of State Auto Dealer Services Division, Rachael C Ehlich; VACC Industry Policy Advisor, Michael McKenna

As part of the Farm and Industrial Machinery and Dealers Association's USA tour, VACC's Michael McKenna headed to Indiana for a meeting with Director IN Secretary of State Auto Dealer Services Division, Rachael C Ehlich and Deputy Director and Senior Counsel IN Secretary of State Auto Dealer Services Division, Kyle Bonick. 

Executive Vice President of the Automobile Dealers Association of Indiana (ADAI), Marty Murphy brokered the meeting.

A key responsibility of the Indiana Secretary of State is to regulate the automotive motor vehicle industry. The end-to-end process this encompasses includes regulation of the vehicle manufacturer (six manufacturers are Indiana-based), regulation of the franchise dealer and used car dealer, as well as other industry participants.

The Secretary of State adjudicates on issues where the Indianian Franchise Statue is involved, and also has the authority to issue and revoke industry licenses.

Notably, the Secretary of State has created the Motor Vehicle Sales Advisory Board (MVAB) as mandated under the Indiana Code. The advisory board is composed of the Secretary of State and eleven people appointed by the governor upon the recommendation of the secretary.

The MVAB is vested with the following powers:

• To consult with and advise the secretary
• To suggest rules, including the contents of forms; methods and procedures for the investigation and evaluation of the qualifications of applicants for licenses; the criteria upon which to issue, deny, suspend, and revoke licenses; procedures for the investigation into and conduct of hearings on unfair practices.

A key observation from the tour to the mid-west USA is that regulators consider industry groups as partners, and take every opportunity to work with this sector before implementing legislation or regulation.

VACC and ADAI thank Rachael and Kyle for their insights and time.

Useful links
VACC: FIMDA tours USA: Indiana (part two)