Mississippi

Mississippi bill restricting electric car dealerships could close state’s only Tesla store

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Mississippi Gov. Tate Reeves will resolve the destiny of a invoice handed within the state legislature Thursday aimed toward limiting electrical automobile producers from opening new brick-and-mortar dealerships until they adjust to the identical legal guidelines adopted by conventional carmakers.

Launched within the Home in January by Rep. Tray Lamar, a Republican from Senatobia, the HB 401 now awaits a call from the state’s Republican governor, who has not indicated if he’ll signal the measure into legislation or not.

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Shortly earlier than it was handed within the Senate on Thursday, the invoice sparked intense debate amongst GOP lawmakers, based on The Related Press.

Opponents mentioned it might betray conservative ideas by setting a authorities coverage that interferes with the auto market, whereas supporters mentioned it might guarantee all automobile producers play by the identical guidelines, no matter enterprise mannequin.

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Republican Sens. Jeremy England, R-Vancleave, left, and Daniel Sparks of Belmont, hear because the Senate Clerk tallies the vote on Home Invoice 401 following a protracted flooring debate within the Chamber on the Mississippi Capitol in Jackson March 2, 2023. (AP Picture/Rogelio V. Solis)

Opponents additionally expressed issues that the invoice, if signed into legislation, would cease electrical carmakers from bringing new expertise and jobs to the state.

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Republican Sen. Joey Fillingane, of Sumrall, mentioned the brand new implications might trigger Mississippi to fall behind different states within the race to draw funding from electrical automobile corporations.

“Possibly we identical to being final on a regular basis. Possibly it’s a badge of honor — we’re the final ones to alter,” Fillingane mentioned. “If we’re not cautious … we might deprive our residents of alternatives they actually ought to not be disadvantaged of.”

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A low-angle view of a Tesla Motors brand at a U.S. dealership. (Smith Assortment/Gado/Getty Photos)

Tesla has one facility in Mississippi the place clients should buy automobiles in individual, however it’s labeled as a retailer and never a dealership – a distinction that permits the corporate to function exterior state legal guidelines governing franchise companies. If the invoice is signed into legislation, the shop won’t be allowed to remain open until it enters right into a franchise settlement.

Sen. Daniel Sparks, a Republican from Belmont, mentioned the exception provides Tesla, and different electrical automobile corporations seeking to reap the benefits of it particular privileges that aren’t accessible to conventional automakers. 

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“We’re saying in case you select to have a brick-and-mortar dealership, it’s a must to observe the identical legal guidelines that everybody else has to observe,” Sparks mentioned. “Please do not inform me Tesla’s automobile would not determine as a automobile.”

Republican Sen. Daniel Sparks of Belmont, explains the essence of a invoice that might place new restrictions on automobile producers for opening brick-and-mortar automobile dealerships. (AP Picture/Rogelio V. Solis)

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The invoice, which doesn’t limit the direct sale of electrical automobiles since they are often bought on-line, handed in a bipartisan 39-13 vote – with 4 Democrats and 9 Republicans voting no.

The Related Press contributed to this report.



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