Pub. 60 2019-2020 Issue 4
15 SUMMER 2020 in automobile and truck dealerships throughout the state. That same day, NADA, AIADA, NAMAD, and the Alli- ance for Automotive Innovation wrote to CISA seeking the inclusion of sales in the next version of critical infrastructure that CISA was in the process of developing. After the initial Dallas County order, the regional asso- ciations ramped up their local efforts to keep dealership operations, including sales, moving forward. Pam Crail in San Antonio, Wyatt Wainwright in the Houston area, Mike Marks in the Austin area, Lexi and D’Anne Buquet in the Valley and El Paso, and Morris Wilkes in Lubbock were all able to keep dealerships fully operating under local orders adopted in their areas. Perhaps the most challenging environment was the North Texas one, given the original Dallas County order and the desire to follow that order in neighboring jurisdictions. Still, Brent Franks, with the North Texas Association, was able to come to an agreement onMarch 25th with Dallas and other counties to allow for online sales and completion of sales at the dealership by appointment. Recognizing the need to continue to work together through this crisis, TADA staff and the regional executives began weekly Friday Zoom meetings on March 27th. CISA 2.0 was issued Sunday, March 29th. CISA 2.0’s transportation and logistics listing added workers critical to the rental and leasing of motor vehicles and equipment, but still took no definitive or specific action regarding sales. However, the financial services section of CISA contemplated the writing of retail installment contracts by franchised dealers as an essential function. On Tuesday, March 31st, Governor Abbott issued a new set of Executive Orders providing for a statewide stay at home order closing all but essential businesses beginning Thursday, April 2nd. Instead of developing the state’s defi- nitions, however, the Governor adopted the newly released CISA 2.0 as his guidepost for defining essential businesses. Throughout the day on April 1st, Rob Braziel, TADACEO for Legislative Affairs, had discussions with the Governor’s office regarding the sales issue in the context of the new CISA 2.0. At the end of the day, it was determined that sales would continue in jurisdictions where currently al- lowed and that TADA would submit a request to the Texas Division of Emergency Management (TDEM) seeking clarification on the sales issue. Thursday, April 2nd, TADA General Counsel Karen Phillips submitted TADA’s request to TDEM on behalf of all franchised dealers. With the question now at TDEM, Texas dealer and DMV Board Member Stacey Gillman reached out to the Governor’s office seeking a definitive clarification. In the meantime, TADA bolstered its argument with the Speaker’s office, the Lieutenant Governor’s office, and the Governor’s office that sales were included under CISA 2.0 by advocating the following: First, dealerships were clearly open as an es- sential business based on their automotive maintenance and repair function. Second, CISA 2.0 added workers critical to the rental and leasing of vehicles, and those same workers are the ones who conduct sales. Third, the financial services section in CISA 2.0 defines a lending transaction by a non- bank lender as an essential service, clearly covering a retail installment contract written by a franchised dealership. While all these issues were being discussed at high-level meetings with TDEMand the Governor’s office, Lieutenant Governor Patrick reached out to KateMcGrath, TADA vice president of Legislative Affairs, to offer his help with Gov- ernor Abbott and through his advisory group on reopening Texas businesses to ensure that dealership sales functions continued. And the lieutenant governor followed through on his offer to help, meeting with the governor and speaker directly about the dealership/sales issue. On April 17th, the issue was officially resolved when Gov- ernor Abbott issued a new executive order citing CISA 2.0 or any subsequent version to define an essential business. At the same time, CISA issued version 3.0 and officially added the sales of motor vehicles to critical infrastructure after yet another request from NADA to add the language. As TADA President Darren Whitehurst remarked, “this truly was a team effort.” TADA, the regional Texas as- sociations, and NADA all worked together to keep the dealerships of Texas up and operating during this most challenging time. CISA 2.0 was issued Sunday, Ma r c h 29 t h . C I SA 2 . 0 ’ s transportation and logistics listing added workers critical to the rental and leasing of motor vehicles and equipment, but still took no definitive or specific action regarding sales. However, the financial services section of CISA contemplated the writing of retail installment contracts by franchised dealers as an essential function.
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