The 88th Texas Legislature recently passed the midway point of the session — now that there are less than 70 days left, the real work begins. The March 10 deadline for legislators to file bills to be considered by the Texas Senate and House this session left us with 5,301 HBs and 2,565 SBs filed for a record-setting 7,866 total bills.
When our Board Chair, Charlie Gilchrist, asked me if we are winning, I immediately wanted to jump to “yes.” The truth of the matter is that “winning” occurs towards the end of session, and the typical session consists of many twists and turns that come with the legislative process. Just getting bills filed can be a challenge. TADA got legislation filed in both the House and Senate on our TADA Legislative priorities this session — one focuses on strengthening the existing franchise law to ensure that dealers are reimbursed by a manufacturer or distributor for warranty and recall work at the same rate that retail customers pay for non-warranty work. Senator Lois Kolkhorst of Brenham is carrying SB 2099 while State Representative Charlie Geren of Fort Worth authored the House companion HB 4078.
The other priority requires insurers to use OEM parts, products, and repair processes in the restoration of the vehicle to pre-damaged condition for the first 36 months of a new vehicle unless the customer chooses to use non-OEM parts. It also prohibits insurance companies from requiring a certain percentage of non-OEM parts in repairs. Senator Phil King of Weatherford is carrying SB 1083 while State Representative Jeff Leach of Plano authored the House companion HB 3476.
There are so many other issues that have the potential to impact Texas dealers, and TADA is working diligently to represent your interests in supporting positive bills of interest, trying to address concerns with problematic legislation and opposing other bills that we believe will hurt Texas dealers and Texas consumers.
A few of these issues include: (1) changing the advertising for certain used vehicles; (2) allowing businesses to pass through credit card charges to customers; (3) establishing a regulatory process for EV charging stations; (4) addressing property tax changes; (5) working to establish a fair allocation formula for vehicles; (6) charging a road-use fee for EVs similar to what ICE vehicles pay in gas tax; (7) enhancing penalties for catalytic converter theft; (8) eliminating the state’s safety inspection system; and (9) eliminating paper tags and replacing them with hard plates, among other concerns.
In every instance, and certainly with our priority issues, there are opponents on the other side working for their company’s interests and against the position of TADA, Texas dealers, and your customers.
We are so thankful a number of dealers have lent a hand by joining our lobby team in visiting with legislators about these issues. It is important to make sure legislators understand the impact these changes will have on your ability to take care of customers — their constituents.
We also had members of the Texas Dealer Academy meet with legislators carrying the positive message of what franchised dealerships mean to the communities they serve. I hope there will be a strong group of dealers at the TADA Board Meeting on April 16–17, and I know that many of these dealers will be talking with their legislators as well.
This team approach is a significant part of what makes TADA so effective at the State Capitol. Every legislator (and their staff for that matter) has a relationship with their local dealer(s) as well as fond memories regarding many of the cars they have driven over the years. It is these personal connections, coupled with the dedicated work of dealers and TADA staff over the years, that have resulted in the consumer-friendly franchise system that we have today in Texas.
