As the year gets underway, I want to share an important update on our legislative priorities and outline how member engagement will be critical to our collective success — particularly as we begin preparing for the 2027 Texas Legislative Session.

Texas is one of only four states that convene its legislature biennially. As a result, legislative success requires long-term planning, early engagement and sustained advocacy well before the gavel ever falls. While the 2027 Regular Session may feel distant, the groundwork for success must be laid now.

One of our highest legislative priorities continues to be manufacturer reimbursement for warranty and recall work — specifically, reimbursement for parts. When a vehicle is brought in for warranty work or a recall, dealers perform that work on behalf of the manufacturer. Texas law requires manufacturers to reimburse dealers at the same rate charged to retail customers for non-warranty work, but the lack of a formula has allowed some manufacturers to fail to pay appropriately.

During the 2023 and 2025 Legislative Sessions, TADA advanced legislation designed to strengthen and clarify this statute. Unfortunately, both efforts fell short — once due to a procedural issue, and once because we were unable to reach an agreement with the manufacturers. Despite those setbacks, TADA remains fully committed to achieving a fair and balanced solution.

As we prepare for 2027, efforts are already underway to elevate this issue as a legislative priority. Only three states — Texas, Missouri and Nevada — lack a parts reimbursement formula. Last session, manufacturers attempted to insert language that would have excluded engines and transmissions from the definition of “parts.” Such a provision exists in only one state nationwide and would have represented a step backward for Texas dealers who are already being properly reimbursed for these components. TADA will continue to advocate for a solution that reflects current law and ensures parity between warranty and non-warranty parts reimbursement.

While the issue may seem straightforward, the reality is far more complex. Legislators and their staff do not understand the impact on dealerships when manufacturers reimburse warranty work at a lower rate than what customers pay for the same work outside of warranty.

That is why dealer engagement matters.

Over the coming months, TADA will work closely with our Executive Committee, District Directors and Legislative Committee to ensure that all 181 members of the Texas Legislature are assigned key dealer contacts. Personal stories and local relationships make the difference.

I encourage you to watch the brief videos recently shared by Chair-Elect Mark Stevenson (ValMark Chevrolet, New Braunfels) and incoming Legislative Chair Bentley Durant (Classic Chevrolet, Grapevine). Along with the one previously shared by Past Chair Tim Crenwelge, these videos clearly articulate why and how this issue impacts every one of the 1,450 dealerships across Texas — regardless of size or market. 

I strongly encourage you to create your own story to share and to spend a little time during the interim getting to know your local legislators. These elected officials shape the franchise system under which we operate. If you already have an established relationship, whether with your own legislator or someone from another area of the state, please let TADA know — those connections are invaluable during the legislative session. If you do not, our lobby team is ready to help facilitate introductions and provide talking points for your meetings.

Texas dealerships are the best grassroots advocacy network. Every legislator knows, or wants to know, a local dealer. You are trusted employers, major contributors to local tax bases and leaders in your communities — often among the first to step up when help is needed. Simply put, dealers are an essential engine that keeps Texas running.

Our organization is strong, engaged and well-positioned for the work ahead. With continued participation from our members and leadership, I am confident that we can achieve meaningful progress in 2027. Thank you for your commitment to TADA and for the vital role you play in advancing our shared mission.