Mississippi passes bill restricting electric car dealerships

JACKSON, Miss. (AP) — The Mississippi Senate gave closing approval Thursday to a invoice to limit electrical automotive producers from opening new brick-and-mortar dealerships within the state except they adjust to the identical legal guidelines conventional carmakers observe.

The laws, launched within the Home by Republican Rep. Trey Lamar of Senatobia, now heads to Republican Gov. Tate Reeves for his signature. On the Senate flooring Thursday, the invoice sparked an intraparty debate amongst GOP lawmakers.

Opponents mentioned it betrayed conservative ideas by enacting a authorities coverage that interferes with the car market and would cease electrical carmakers from bringing new expertise and jobs to the state. Proponents mentioned the regulation would make sure that all automotive producers, no matter their enterprise mannequin, play by the identical guidelines.

Tesla sells automobiles in individual at one facility in Mississippi that’s labeled as a retailer, not a dealership. The excellence permits the corporate to function exterior state legal guidelines governing franchise companies. This exception, and the prospect of different electrical corporations profiting from it, provides these producers particular privileges that conventional automakers don’t take pleasure in, in line with Republican Sen. Daniel Sparks of Belmont.

“We’re saying when you select to have a brick-and-mortar dealership, you must observe the identical legal guidelines that everybody else has to observe,” Sparks mentioned. “Please don’t inform me Tesla’s automotive doesn’t determine as a automotive.”

Sen. Brice Wiggins, a Republican from Pascagoula, mentioned the “protectionist” invoice got here from conventional automotive sellers threatened by competitors from electrical carmakers.

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

“Perhaps we identical to being final on a regular basis. Perhaps 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.”

The Biden administration has incentivized the acquisition of electrical automobiles. That, on prime of an exception to laws underneath state franchise legal guidelines, permits electrical carmakers to function by a unique algorithm, Sparks mentioned.

The invoice doesn’t prohibit the direct sale of electrical automobiles, as individuals can purchase them on-line. But when they need to purchase an electrical automotive in individual, they must drive to the state’s solely Tesla retailer in Pearl, which will probably be allowed to stay open underneath the proposed new regulation. Tesla or another electrical automotive firm couldn’t open a brand new brick-and-mortar location to promote automobiles except they enter a franchise settlement.

The invoice handed in a bipartisan 38-14 vote.

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Michael Goldberg is a corps member for the Related Press/Report for America Statehouse Information Initiative. Report for America is a nonprofit nationwide service program that locations journalists in native newsrooms to report on undercovered points. Observe him on Twitter at twitter.com/mikergoldberg.