To make an exception for Tesla in a state law that prohibits car makers from selling directly to a Michigan consumer. The law effectively prohibits a manufacturer from establishing a direct-to-consumer sales method, rather than networks of local dealers granted restricted territories for each brand. The bill is said to partially “codify” in law for Tesla only a previous court settlement that allowed Tesla and other electric car makers to market vehicles through a “gallery” type system.   Official Text and Analysis.

With the recommendation that the substitute (H-2) be adopted and that the bill then pass.

To adopt and amend a substitute that appears to not let Tesla sell vehicles directly to Michigan consumers, and that revises prescribed manufacturer/dealer warranty arrangements in a way said to benefit new car dealers.

To adopt a version of the bill that would exempt Tesla (identified by referencing the lawsuit that invalidated a state ban on direct sales by the firm) from the current law's ban on care makers selling directly to consumers or owning their own dealership in Michigan.

To repeal sections of this law that prescribe certain details of dealer/manufacturer arrangements on vehicle recalls and customer warranty claims. This is said to benefit dealers in this arrangement.

To adopt a version of the bill that would exempt any company that makes "electric motor vehicles" from the current law's ban on care makers selling directly to consumers or owning their own dealership in Michigan.

To revise the definition of "selling" in a state law that prohibits car makers from selling directly to a Michigan consumer, rather than selling through a dealer, and repeal a section of that law prescribes certain details of dealer/manufacturer arrangements on customer warranty claims. It is not clear whether this accommodates the bill's original purpose of bringing the state into compliance with a court ruling that invalidated a law prohibiting Tesla from using a sales model other than the franchised new car manufacturer and dealer territory arrangements otherwise required by state law.