Starkville Daily News

Electric car stores will be restricted in Mississipp­i

- By MICHAEL GOLDBERG

JACKSON — Mississipp­i Gov. Tate Reeves signed a bill Tuesday restrictin­g electric car manufactur­ers from selling vehicles in person unless they open franchised dealership­s.

Defying calls from some fellow Republican­s in the Legislatur­e to veto the measure, Reeves enacted into law House Bill 401, introduced by Republican Rep. Trey Lamar of Senatobia. The law will force electric car companies such as Tesla and Rivian to sell vehicles through franchises rather than company-owned stores, which is how they currently operate.

"Almost 200 small businesses in communitie­s across our state are seeking assurances that big manufactur­ers can't just destroy their businesses. That's fair!" Reeves, a Republican, said in a statement posted to social media. "I also recognize that innovation in this industry is inevitable. And with innovation comes new companies with new business models. I am committed to find long-term solutions—in an ever changing market."

The bill does not restrict the sale of electric cars, as people can buy them online. But if they want to buy an electric car in person, they would have to drive to the state's only Tesla store in Brandon, which will be allowed to remain open under the new law. Tesla or any other electric car company could not open a new brick-andmortar location to sell cars unless they enter a franchise agreement.

Before the bill passed in a bipartisan 39-13 vote on March 3, it sparked an intraparty debate among GOP lawmakers. Opponents said it would interfere with the automobile market and stop electric carmakers from bringing new technology and jobs to the state. Proponents said the law would ensure all car manufactur­ers, regardless of their business model, play by the same rules.

Republican Sen. Brice Wiggins, a Republican from Pascagoula, had hoped Reeves would veto the legislatio­n. Lawmakers were aiming to attract Tesla to Mississipp­i's Gulf Coast, an area Wiggins called the state's economic driver.

"In today's world, if you don't innovate, you lose out. We as a state cannot afford to lose out," Wiggins told The Associated Press on Tuesday. "My vote against the bill was a vote for capitalism, competitio­n and innovation rather than for a policy of protection­ism."

Michael Goldberg is a corps member for the Associated Press/report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalist­s in local newsrooms to report on undercover­ed issues. Follow him on Twitter at twitter.com/mikergoldb­erg.

 ?? (AP Photo/rogelio V. Solis, File) ?? FILE - Mississipp­i Republican Gov. Tate Reeves speaks during a news conference on Feb. 28, 2023, in Jackson, Miss. Reeves signed a bill Tuesday, March 14, 2023, that will restrict electric car manufactur­ers from opening dealership­s in the state unless they work with a franchisee, defying calls to veto the legislatio­n from some lawmakers in his party.
(AP Photo/rogelio V. Solis, File) FILE - Mississipp­i Republican Gov. Tate Reeves speaks during a news conference on Feb. 28, 2023, in Jackson, Miss. Reeves signed a bill Tuesday, March 14, 2023, that will restrict electric car manufactur­ers from opening dealership­s in the state unless they work with a franchisee, defying calls to veto the legislatio­n from some lawmakers in his party.

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