Provision on electric vehicles is aimed at getting GOP senator who sells Tesla parts to vote for budget

Mary Spicuzza Molly Beck Patrick Marley
Milwaukee Journal Sentinel
Tesla model X, which costs around $78,950, the company website says, is on display.

A last-minute budget provision to make it easier to sell cars made by Tesla is aimed at winning the crucial vote of Sen. Chris Kapenga, who has pushed for the measure in the past and owns a business that sells Tesla parts and salvaged electric vehicles. 

Assembly Republicans added the measure to the budget Tuesday, a day before the GOP-controlled Senate was to take it up. Kapenga is a longtime supporter of the Tesla proposal but said he wasn't sure yet if he would vote for the budget. 

The budget measure would allow Tesla to sell its electric vehicles directly to consumers rather than having to go through dealers.

Kapenga, a Republican from Delafield who works as an accountant, owns Integrity Motorsports of Eagle, which sells Tesla parts and rebuilds and sells salvaged Teslas, according to the company website. A 2019 Tesla Model X sells at prices ranging from $83,000 to $139,000, according to Kelley Blue Book.

Kapenga said in an interview he hasn't sold any Tesla vehicles but has rebuilt two for him and his wife. Kapenga said he previously sold used Lexus-made vehicles through the business. 

State Sen. Chris Kapenga, R-Delafield

"I've made no money from it," Kapenga said. "It's a hobby of mine and just because I enjoy the product and that I’m kind of a gear head, I don't gain materially or economically at all — that would be unethical ... I'm very careful of that."

Kapenga previously supported legislation that mirrors the late addition to the budget. He said he purchased his first Tesla about a year ago after he began sponsoring the legislation.

"I learned about Tesla after I decided to sponsor the bill," he said. "It was fascinating. ... It's been a total blast."

Democratic Rep. Evan Goyke of Milwaukee questioned Kapenga naming his business Integrity Motorsports.

"Conflict of Interest Motorsports?" said Goyke, who sits on the Legislature's budget committee.

"If this is above board and if there are no problems, then why not do it in the light of day? Why try to sneak it in? To me, where there’s smoke, there’s fire. To me it's problematic and I hope he doesn’t get away with it."

GOP Assembly Speaker Robin Vos of Rochester said he didn't see any conflict for Kapenga.

"If you can already do your business (under existing law), what's the difference?" Vos said.

Getting Kapenga's vote is essential for Republicans. 

Republicans control the Senate 19-14. Two Republicans — Steve Nass of Whitewater and David Craig of Big Bend — have said they will vote against the budget, and Republicans can't afford to lose any more because all Democrats oppose it.

The Republican-led Assembly was expected to pass the budget Tuesday and Senate leaders plan to take it up Wednesday. It would then go to Democratic Gov. Tony Evers, who can reshape it using partial vetoes.

The Tesla tweak was just one of a number of provisions unveiled Tuesday as Republicans tried to lock down the last votes needed to pass the $81.5 billion budget in the Assembly and Senate.  

Other new provisions would give counties more prosecutors and prevent a committee of lawmakers from imposing new vehicle fees on its own.

Assembly Majority Leader Jim Steineke of Kaukauna said Tesla vehicles should be sold differently from other cars because they are part of "market disruptions" that are akin to other new technologies. He said he didn't know Kapenga sold Tesla parts.

"I don't know anything about his business interests," Steineke said. "You'd have to talk to the senators about that."

Contact Mary Spicuzza at (414) 224-2324 or mary.spicuzza@jrn.com. Follow her on Twitter at @MSpicuzzaMJS or Facebook at https://www.facebook.com/mary.spicuzza.