Trouble in NC: Senate Bill 327

[howabout2]

Hi guys. It's been a long time. My wife and I ended up cancelling our Model S reservations because we had a change of heart about the financial sanity of buying two premium cars. We're not wealthy folks so it seemed a little insane after a bit of reality set in. We decided to invest in TSLA stock with the money instead. So far that has proven a good idea. But unfortunately, I now have to read about how awesome the Model S is and live in a state of envy.

In any event, this little bit of trickery by NC gives me a heart ache.

I run a very small activism site as a side business named Brian's Taskforce. I've recently expanded it to all 50 states, but there's nothing going on in most of them yet. I decided to make a task on the "North Carolina Taskforce":

"Allow Tesla to sell Model S in North Carolina, revise SB 327"

The basic gist is like a petition but instead of signing, you donate to charity on behalf of the idea you're promoting as a symbolic gesture. I've decided to donate $10 to Doctors Without Borders since Elon Musk seems to like that particular charity. I'll donate $10 more if the North Carolina General Assembly sees the error of their ways and revises the bill.

 

[C.Ford]

I just had an interesting conversation with my State Senator who is a member of the Commerce Committee and is the Deputy Minority Leader. I informed him of my concerns with the bill and he said he did not realize the bill would restrict auto sales and service directly from manufacturers that did not have a dealer network. He said he was in favor of protecting franchised dealers from direct sales of autos from manufacturers of the autos they sell, but that restriction should not extend to auto manufacturers that do not have established dealerships in the state. He said he would ask the committee and the head of the Dealer's Association why the sales restriction should extend to an auto manufacturer that doesn't have a dealer in the state when the Commerce committee met today. He also said he supported amending the bill to allow auto manufacturers without dealers to sell and service directly to consumers. He may be blowing smoke, but we may have an ally on the committee.

 

[Citizen-T]

Apparently the bill was taken off the agenda for today. Perhaps because we've made enough noise that they realize they need to do some more work on it (no idea what the real reason is).

 

[Born 2 Skydive]

Just left the Legislative Building in Raleigh. Bill 327 was taken off the agenda. Meet with my Senator Dan Soucek and voiced my opinion with the bill and gave him a little background on Tesla. He said he will get in touch with Senator Tom Apodaca, sponsorship of bill 327. Will keep everyone up to date.

 

[stevezzzz]

Way to step in and advocate, citizens!

 

[Citizen-T]

Just left the Legislative Building in Raleigh. Bill 327 was taken off the agenda. Meet with my Senator Dan Soucek and voiced my opinion with the bill and gave him a little background on Tesla. He said he will get in touch with Senator Tom Apodaca, sponsorship of bill 327. Will keep everyone up to date.

Glad you didn't make the trip for nothing. Let's keep an eye on this.

 

[Born 2 Skydive]

Just got an email from my Senator's aide, Bill 327 has be re-schuduled for Thursday

SENATE NOTICE OF COMMITTEE MEETING AND BILL SPONSOR NOTICE

SB 327 Clarify Motor Vehicle Licensing Law. Senator Apodaca
Thursday May 9, 2013 11:00 AM Room 1027/1128 LB

 

[C.Ford]

I offered some change in language to amend the bill to allow manufacturers to sell and service vehicles not available through established franchised dealers to my Senator. He took the proposal to the bill sponsor. He sent me an email that the bill sponsor declined to amend the bill. Looks like the fight to kill the bill is on.

 

[Citizen-T]

Very well then. A fight they shall have.

 

[dflye]

I offered some change in language to amend the bill to allow manufacturers to sell and service vehicles not available through established franchised dealers to my Senator. He took the proposal to the bill sponsor. He sent me an email that the bill sponsor declined to amend the bill. Looks like the fight to kill the bill is on.

Disappointing, but not surprising, that the bill sponsor declined to amend the bill.

Was there indication of where the bill is headed and when?

Trying to get that info from the NCGA web site, all it seems to have is the text of the bill and that it was referred to the Commerce committee back on 3/19:

North Carolina General Assembly - Senate Bill 327 Information/History (2013-2014 Session)

 

[Born 2 Skydive]

And the fight continues........Dealership law change could preclude Tesla electric car sales in NC :: WRAL.com

 

[Al Sherman]

These lying phonies might as well say: "I've been bought and paid for and that's the way it goes."

 

[Krugerrand]

This is what irritates me the most:

"Are you still receiving government subsidy?" asked Sen. Tommy Tucker, R-Union.

O'Connell replied, "Sir, we've never received a government subsidy. We have a loan from the Department of Energy, which we are already paying off, and we're paying it off early."

How can a person in a Sen. position not know the facts of what's in front of him? Just what exactly did you have your assistant doing prior to showing up, since clearly you were too lazy to educate yourself.

 

[Citizen-T]

Finally found the time to email my Senator today. This is what I wrote, feel free to take from it what you like for your own communications.

Senator:

I have never been embarrassed to be a North Carolinian---until today. Today I read this article on WRAL.com which claims that Senate Bill 327 would prohibit an American car maker, which makes cars that run on American fuel sources, employs American workers, and has taken the mantle for inovation in the auto industry back for America---Tesla Motors---from being able to sell its cars in our state.

What's worse is that the only explanation that I can find for such a bill is that the North Carolina Automobile Dealers Association can't find any way to complete with Tesla other than to legislate against them. My reasoning follows.

The Product
The NC auto dealers have nothing to sell to North Carolinians that can compete with Tesla's Model S. The Model S has swept the industries "car of the year" awards and just yesterday was awarded the highest score ever by Consumer Reports. In this video Consumer Reports claims that they would buy the Model S over any of its competitors.

The Price
Tesla's Model S is priced comparable to other cars in its class; however, because EVs require little to no maintenance, and the cost of electricity is a fraction that of gasoline---the Model S is significantly cheaper than anything the auto dealers have to offer on a cost of ownership basis.

The Sales Model
Tesla has turned the auto buying experience on its head---for the better! Again, in the video linked above from Consumer Reports, the magazine raves about how much better the sales and service experience is versus an auto dealership model. Furthermore, Forbes wrote what I believe to be the best case for Tesla's sales model (better than the case I've heard even Tesla make) in their recent article Buying a Car is Awful: Tesla Will Make it Better.

I could go on, but I know your time is valuable. Suffice it to say, the auto dealers cannot compete, and they know it. They have only one advantage over Tesla at this point, they have a lot of cash and long standing relationships with senators like yourself. Make no mistake, they are deploying these tools not to protect consumers as they claim, but to squash out competition and with it innovation.

They are doing it in a coordinated fashion across our entire country, and I never thought that this state, where we value capitalism and free enterprise would fall for such a blatantly anticompetitive move.

The dealerships claim that their model is better. That customers would be better served if Tesla would sell through them. Fine. If they believe that, then let's settle this the old fashioned way---in the marketplace. They claim that they are trying to protect consumers. Nobody buying a $70k luxury sedan needs protection. I am perfectly capable of doing research, weighing the risk, and making an adult decision. I do not need the government to decide what purchasing decisions are too risky for me.

I ask for your immediate attention to this matter. The dealer model is ancient. It was conceived of in a time when there was no Internet. Tesla thinks it has found a better model, and so far it seems to be working. We cannot allow the establishment to user our government to defend their empire. Make them improve their service, marketing, price, and products to defend that empire.

I would appreciate a response so that I can be informed of your position on this matter.

Thank you.

 

[Babylonfive]

Very nice C-T.

In Texas, existing owners had good recent effect of direct lobbying. Many of us went to the capital (and the capitol) and arranged meetings with our local state legislators. Obviously you need South Carolinians from a variety of places to cover multiple members, but once you know who the committees contain, concentrate on those members.

We had a 'Capital Tesla Demo Day' where many of us came out with our cars to show them to members or staff who would come look. Our attempts were meager but we do think they made a difference. We even utilized Todd Burch artwork to make a flyer and distributed to a number of offices - the big players on this were dsm363 (Dave) and Stephen Pace, but many of us participated.

 

[Ajrdu]

I've been recently working with legislators in NC to introduce healthcare legislation. It has really opened my eyes as to how things work. After speaking to some trusted lobbyists today, it seems certain that killing this bill will be extremely difficult because of the sponsors' dedication to pushing it through. It has to pass the senate by 05.16.2013 or it dies. Now that its on the senate floor, we should be preparing to reach out to the house as there may be a better chance of getting a rewrite. The people I talked to just don't believe it can be stopped. If that we're the case, how far in the buying process would one have to be before one would be exempt from it should it go into law? Is a reservation number enough? Do you need a VIN? It just so happens I ordered 2 weeks ago.

 

[Citizen-T]

Sent a similar message to Governor McCory today. He does have veto power, would be nice to have his support as a backstop.

 

[dflye]

Sent a similar message to Governor McCory today. He does have veto power, would be nice to have his support as a backstop.

Given Gov. McCrory's proclivity of favoring his energy cronies from Duke Power, I have absolutely no faith in him vetoing any bill that goes against the fossil fuel based economy that the dealership model depends upon.

If the tax on transferring the title of a Tesla from a neighboring state to NC is less than the current tax on buying the same vehicle in NC, the legislature is definitely either clue-free, incompetent, or fully owned by lobbyists such as those paid for the the NCADA.

 

[Citizen-T]

Given Gov. McCrory's proclivity of favoring his energy cronies from Duke Power, I have absolutely no faith in him vetoing any bill that goes against the fossil fuel based economy that the dealership model depends upon.

If the tax on transferring the title of a Tesla from a neighboring state to NC is less than the current tax on buying the same vehicle in NC, the legislature is definitely either clue-free, incompetent, or fully owned by lobbyists such as those paid for the the NCADA.

Should still make our opinion heard. If we just assume and don't let him know how we feel, then there really is no hope.

 

[bollar]

At least Duke power is on the side that has something to gain if cars are powered by electricity instead of oil.