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Tesla Model S

(Tesla Motors)

Electric carmaker Tesla Motors may be back in business under new legislation set to be proposed by two state lawmakers.

Under the proposal, Tesla, whose direct to consumer sales model was effectively banned earlier this year by the Motor Vehicle Commission, would be able to set up four stores in the state - two more than it had prior to the rule change -to sell its high-end electric cars.

The car maker, whose Model S was named the 2013 Motor Trend Car of the Year, would also be required to open a second service station, in addition to the charging station opened in Hamilton, Mercer County, earlier this month.

“As you know, I’m an electric car owner,’ said bill sponsor Assemblyman Tim Eustace, (D-Bergen/Passaic. "But more importantly, new technology in New Jersey should be encouraged, more jobs in New Jersey should be encouraged and the tax revenue this will generate should not be given away to another state.”

Last month, the state Motor Vehicle Commission clarified its rules on dealer franchises, which served to ban Tesla’s direct sales model. The company waged a public relations battle in the state, issuing statements calling the new rule the product of back room dealings between the governor and the car dealers.

The governor’s office countered, saying Tesla representatives were told that any change must be done legislatively. While Tesla insisted the new rule was anti-free trade, the car dealers lobby, represented by the New Jersey Coalition of Automotive retailers charged it was Tesla who was eliminating competition by controlling distribution.

Tesla challenged the rulings in the court, saying the traditional dealer model represented a conflict of interest.

“Franchise dealers have an inherent conflict of interest in selling electric vehicles,” Tesla said in the filing. “In order to do so effectively, they would need to enthusiastically tout the reasons why electric vehicles are superior to gasoline vehicles. This is not something that they are going to do since gasoline vehicles represent virtually all of their revenue.”

Reached Wednesday bill sponsor Assemblyman Lou Greenwald (D-Burlington/Camden) said the bill represented a compromise, which walks the line between the carmaker’s ability to sell its products and the dealers’ concerns.

“In the end its still about consumer protection,” said Greenwald, who paid his way through college selling cars. “But we want to make sure this company that has developed what seems to be recognize by the automobile industry as one of the most innovative products on the market today to continue to have a presence in New Jersey.”

Asked if he’d had any discussions with the administration about the viability of the bill, Greenwald said he hadn’t but had in fact, answered a challenge form the governor himself.

“Obviously the governor and the MVC created this issue and then challenged the legislature to come up with a solution,” he said. “That’s exactly what I did.”

A spokesman for NJCAR did not return a call for comment.