The Senate Commerce and Technology Committee voted to send HB 1254 to a summer study committee. The House passed the same version of the bill Feb. 2.
Sen. Jim Buck, R-Kokomo, the committee chairman, had wanted to move forward a version of Rep. Kevin Mahan's bill that would have banned manufacturers from selling directly to consumers. The bill would have caused Tesla's dealer license to expire in 2018, forcing the Palo Alto, Calif.-based company to either adopt a franchise dealer model or stop selling cars in Indiana. Tesla has a showroom at Fashion Mall at Keystone.
General Motors Corp. has expressed support for the bill, arguing that Tesla has a unique advantage. Existing state law prevents General Motors and other automakers from opening sales centers like Tesla's that would compete with its dealerships.
Buck on Thursday opened the committee meeting by saying he has been on the receiving end of "incivility" from Tesla supporters this week.
"So far in this discourse, GM has been the whipping boy," Buck said. "That has irritated me, primarily because it's not true."
Mahan, R-Hartford City, noted Tesla could continue to sell cars in Indiana if his bill were to pass.
"We heard from a competitor that the bill would have ended their ability to do business in Indiana," Mahan said. "That would have been their choice not to comply with the law."
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