(Radio Iowa) – Iowa lawmakers are considering whether to let out-of-state companies that make electric vehicles become a state-licensed automobile dealer. Under current law, vehicles sales in Iowa must be done through a licensed dealer and Senator Mike Bousselot of Ankeny says the bill would help Tesla as well as Rivian, a company which produces battery powered pick-ups, S-U-Vs and vans at a plant in Illinois. “They just want to be able to sell their vehicles directly to consumers in Iowa without using a dealer,” Bousselot said. “There are concerns from the dealers that are not just about protecting the dealership model, but also about impacts on consumers, impacts on their current business.”

The bill cleared a Senate subcommittee yesterday (Tuesday) and Rivian brought some of its vehicles to the statehouse afterwards for lawmakers to examine. “This bill’s making its way through the process and we’ll have a robust debate in the Commerce Committee,” Bousselot says. Iowa is among 18 states that prohibit car manufacturers from selling directly to consumers.

It means companies like Tesla and Rivian must sell their vehicles to a dealership, which then sells the vehicles to Iowans.