TRENTON — When his administration stopped Tesla from selling its electric cars directly to customers at its New Jersey showrooms almost exactly one year ago, Gov. Chris Christie blamed the state Legislature for writing the law he said forced him to act.

"I have no problem with Tesla selling directly to customers, except that it's against the law in New Jersey," Christie said at a March 2014 town hall. "What they were asking for was an exception from the law. I'm not the king. I don't get to grant exceptions to the law."

Now the Legislature has acted to change that law, with the state Senate today giving final legislative passage to a bill that would allow Tesla to restart sales at its two New Jersey showrooms, and to open two more.



The bill (A3216), which passed 30-2 with no debate, is now on Christie's desk. He has 45 days to act on it.

"We must boost our economy with innovative industries that can help drive revenue and energy solutions while providing a cleaner environment for our residents. Last year's decision is having a serious affect on our progress," said bill sponsor state Sen. Shirley Turner (D-Mercer) in a statement. "It is now up to the Legislature to reverse this inflexible policy to help support promising companies like Tesla Motors in expanding their sales in New Jersey."

A spokesman for Christie said the bill "will be reviewed."

Tesla had been selling cars at its Paramus and Short Hills showrooms until last spring, when the state Motor Vehicle Commission revoked their license because, it said, a state law on the books since the 1970s required cars to be sold through dealerships.

Since then, the company has kept the showrooms open. But while potential customers can gawk at the cars and look inside them, Tesla employees cannot sell or discuss pricing with them. Those who want to own Teslas, which start at more than $70,000, can purchase them in other states or online.

The bill only applies to manufacturers of zero-emission vehicles that were licensed by the Motor Vehicle Commission before Jan. 1, 2014. The only company that fits that mold is Tesla.

The bill also requires Tesla to open a service center in New Jersey, something it did in December in Paramus.

The car dealers' association is opposed to the legislation.

"The love affair with Tesla has got everybody gooey, but this is special legislation to accommodate one Silicon Valley startup," said Jim Appleton, president of the New Jersey Coalition of Automotive Retailers. "You've got to question whether that's good public policy.

Appleton said that "nobody wants to see Tesla out of business." Instead, he said his group would support a compromise proposal that would allow Tesla or any other electric car manufacturer to begin by selling directly to customers, but to convert to a dealership model "when they reach critical mass."

Tesla representatives have said that model won't work for them. Dealerships make much of their money on maintenance, they said, which their cars require less of. Dealers would have more incentive to sell gas-powered cars, they argued.

But Appleton said allowing automakers to sell directly to consumers "eliminates competition," and that manufacturers have "a financial interest in resisting and denying claims under warranty and safety recall services for defects for vehicles they manufacture."

The two senators who voted against the bill were Joe Pennacchio and Anthony R. Bucco (both R-Morris).

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Matt Friedman may be reached at mfriedman@njadvancemedia.com. Follow him on Twitter @MattFriedmanSL. Find NJ.com Politics on Facebook.