James Briggs

james.briggs@indystar.com

You won't find the word "Tesla" in House Bill 1592. But the Palo Alto, Calif.-based car maker sees itself in the bill and is once again preparing to make its name known throughout the Indiana Statehouse.

State Rep. Ed Soliday, R-Valparaiso, has filed legislation that would ban manufacturers of "all-electric vehicles" from selling directly to consumers. The bill, similar to legislation introduced last year, includes a list of criteria that explain what kind of company would be affected.

The bill applies to manufacturers that have sold cars in Indiana since July 2015 and have never used a franchised dealership. Such a company would have to stop selling cars directly to consumers either after its sales surpass 1,000 cars per year, or six years after its dealer's license is granted.

Hey, what do you know, there's exactly one company that will soon be out of compliance with this bill. Tesla, which received its dealer license in December 2013, would have to shut down its Indiana sales in 2019.

It's no secret that automakers, dealers and some legislators want to stop Tesla from doing business in Indiana and other states. That's because Tesla is the only company that sells straight to consumers.

Other automakers, such as General Motors Co. and Ford Motors Co., use a long-established network of dealers that negotiate with buyers and provide services ranging from oil changes to repairs. The politically influential groups argue Tesla's model allows the company to evade laws that impose strict rules on how dealers do business. In essence, they say, Tesla has an unfair advantage and no accountability to its buyers.

That case isn't new, but it is intensifying. Tesla makes all-electric cars that start in the $60,000 range and go up from there. Soon, though, Tesla plans to roll out a car called the Model 3, which would sell in the $30,000 range after rebates. That car would directly compete with a new GM car, the Chevy Bolt, which would sell in a similar price range and appeal to the same kind of buyer.

Nick Dellen, president of the Greenfield-based Dellen Automotive Family, said in an interview that Tesla's new mass-market car raises concerns that middle-class buyers could be harmed if their car breaks down and they can't get it fixed. Tesla has a store at the Fashion Mall at Keystone in Indianapolis, but no service center. The company plans to open a service center in Castleton by April.

Beyond that, Dellen said, he's worried other, less reputable manufacturers could follow in Tesla's footsteps. Dellen, a third-generation dealer, runs 11 franchises in Indiana.

"Tesla's not the enemy," Dellen said. "I'm afraid of so many ways that (Tesla's business model) could go awry. I'm concerned that another company could be importing vehicles with no dealer system for dealerships."

It's a valid concern that warrants the legislature's attention. But Soliday's bill doesn't address it.

HB 1592 will prevent Tesla — and only Tesla — from selling cars in Indiana.

Soliday did not respond to a request for comment. During a September hearing, Soliday said he did not want the debate over a direct-sales ban to be solely about Tesla. Last year's proposal died in committee after Tesla fans bombarded lawmakers.

"I wish we could take the Tesla name off it and (determine) what is the right way to regulate automotive sales in the state of Indiana going forward, and is there a transition to a brave new world," Soliday said Sept. 20. "I don't know the answer to that."

Soliday's bill provides no answer. It would simply eliminate the only company that is threatening the status quo of car buying.

HB 1592 will get its first hearing Wednesday in the House Roads and Transportation Committee, which is chaired by Soliday. Tesla has created a website, freemarketindiana.com, in hopes of exciting the same level of opposition that defeated last year's proposed Tesla ban.

It's understandable that lawmakers would prefer not to discuss Tesla while they squash the company's business model. Tesla is widely considered one of the most innovative companies in America. Its cars are beloved by gearheads and tech geeks alike.

But HB 1592 is all about Tesla — and the debate will be, too. Legislators can expect Tesla and its superfans to confront them like Walter White in the television show "Breaking Bad."

"You know exactly who I am," White, played by Bryan Cranston, said in perhaps the show's most famous scene. "Now, say my name."

Call IndyStar business columnist James Briggs at (317) 444-6307. Follow him on Twitter: @JamesEBriggs.