Bill Description: Senate Bill 1424 would prohibit new direct-sale vehicle dealerships (i.e., the Tesla model) not already established before January 1, 2026.
Rating: -3
Does it give government any new, additional, or expanded power to prohibit, restrict, or regulate activities in the free market? Conversely, does it eliminate or reduce government intervention in the market?
Senate Bill 1424 would amend Section 49-1613, Idaho Code, to change the law that says it’s unlawful for vehicle manufacturers and distributors to “compete with their franchised dealers in this state” to say that they cannot “compete with licensed dealers in this state.”
This change completely alters the meaning of the law. Under the current law, Ford could not open a Ford-owned dealership to compete with its own existing, franchised Ford dealerships. Under this bill, a new manufacturer — that has no franchised dealerships in Idaho — would not be able to open up its own dealership to sell directly to consumers in the manner that Tesla does now.
(-1)
Does it increase barriers to entry into the market? Examples include occupational licensure, the minimum wage, and restrictions on home businesses. Conversely, does it remove barriers to entry into the market?
The bill doesn’t just create barriers to entry. It creates insurmountable obstacles. Many new and innovative vehicle manufacturers don’t have the necessary market footprint to establish franchise dealerships across the country, and this bill would prevent them from making direct sales to willing buyers in the state of Idaho.
(-1)
Does it violate the principle of equal protection under the law? Examples include laws that discriminate or differentiate based on age, gender, or religion or which apply laws, regulations, rules, or penalties differently based on such characteristics. Conversely, does it restore or protect the principle of equal protection under the law?
The bill would add a carve-out to the law, stating, “A manufacturer or distributor with a manufacturer-owned or distributor-owned dealership operating in Idaho as of January 1, 2026, shall be exempt from the provisions of this paragraph.”
This exception would apply to Tesla and possibly Rivian (which operates a manufacturer-owned Service + Demo Center in Boise), but it would exclude any other current or future manufacturer (such as Lucid) that has not yet opened a sales facility in Idaho.
(-1)
