Bill
H 3777
The bill allows certain U.S.-based EV manufacturers with no SC dealers in 10 years to own and operate new car stores (and related repair facilities) in South Carolina, enabling dir
Note on source materials
- The packet provided includes an unrelated Massachusetts bill (House Docket No. 541 / An Act relative to an interstate compact for western MA rail service). That Massachusetts text appears to be included in error and is not relevant to the South Carolina bill summarized below.
- The description that follows addresses the South Carolina legislation titled the South Carolina Consumer Freedom Act (amendments to S.C. Code §56-15-45) contained in the materials.
Purpose and intent
- The bill creates a narrowly tailored exception to South Carolina’s longstanding prohibition on manufacturer ownership or control of new motor vehicle dealerships. Its stated purpose is to permit certain automotive manufacturers that operate a manufacturing factory or assembly plant in South Carolina — and that have never had franchise dealer agreements in the State — to sell directly to consumers. The legislative findings emphasize increased consumer choice, competition, and support for a free market while asserting the intent not to undermine existing franchise dealers.
Key provisions (what the bill would change)
- Amends S.C. Code §56-15-45, subsections (A) and (C), to add a new exception (A)(4) to the general prohibition on manufacturers owning/operating dealers. Under (A)(4), a manufacturer or franchisor may own or operate a new motor vehicle dealer if all of the following are true:
- (a) the manufacturer manufactures or assembles vehicles propelled wholly or in part by an electric motor (i.e., electric or electrified vehicles);
- (b) the manufacturer has had no franchised dealers in South Carolina in the ten-year period before this provision became effective; and
- (c) the manufacturer was incorporated in the United States before the effective date of the act.
- Amends subsection (C) to allow such manufacturers (or their affiliates/subsidiaries described at (A)(4)) to own facilities that engage primarily in motor vehicle repair (other than motor homes) — removing the general prohibition on manufacturer-owned repair facilities when repairs are not exclusively warranty/contract-based for franchise agreements.
- Effective date: on approval by the Governor (takes effect upon signature).
Who would be affected
- Eligible manufacturers: U.S.-incorporated companies that operate an assembly plant or factory in South Carolina, produce electric (or partially electric) vehicles, and that have not had franchised dealers in the state during the prior ten years. (Example profile: an EV manufacturer that enters SC with a factory but without an existing dealer network.)
- Consumers: prospective new-vehicle buyers in South Carolina could be able to purchase directly from such manufacturers.
- Franchise dealers: the bill asserts it is not intended to affect existing franchise dealers; however, dealers selling competitive brands could experience competitive impacts in local markets where a manufacturer opens a direct-sales operation.
- Service/repair sector: manufacturer-owned repair facilities for eligible manufacturers would be permitted in more circumstances than under current law.
Procedural and timeline notes
- Introduced: January 16, 2025 (filed as a bill to amend §56-15-45).
- Referred to Committee on Labor, Commerce and Industry (1/16/2025); later recorded as referred to Transportation (2/27/2025) in the action log.
- Sponsor actions: Sponsor Brewer was removed (2/06/2025); members Alexander, Grant, and Reese were added as sponsors (1/30/2025).
- Senate concurred (2/27/2025) per the action list.
- Hearing(s) scheduled: October 14, 2025 (originally/B-1 then rescheduled to A-1 and virtual location updated) for a multi-hour hearing window (1:00 PM–5:00 PM).
- Effective upon Governor’s approval.
Potential impacts and considerations
- Proponents argue this increases consumer choice, encourages investment (manufacturing jobs), and enables modern direct-sales EV business models.
- Opponents/concerns typically include effects on the traditional franchise dealer system (competition for sales/service), consumer protections tied to franchised dealer networks, potential impacts on local tax/revenue and warranty/service access, and legal/regulatory conflicts with existing dealer statutes and franchise contracts.
- The bill limits eligibility (EV production, no prior dealers in SC for 10 years, U.S. incorporation) which narrows but does not eliminate competitive effects; municipalities, regulators, and dealers may still see practical and regulatory questions once a manufacturer seeks to operate direct sales in-state.
If you want, I can:
- Extract the exact redline language change to §56-15-45 for use in legal review,
- Produce a short side-by-side comparison of current law vs. proposed text, or
- Summarize anticipated stakeholder positions (manufacturers, dealers, consumer advocates).
Compiled from official sources — confirm details with the bill’s official record.
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