Texas Dealer December 2023

Also in this issue: – Michael W. Dunagan: Maximum Finance Charge Rates for 2024 – What to Expect When You Receive a Notice of Examination from the OCCC – Considering a Credit Applicant’s Immigration Status: What the Feds Want You To Know – Changes to Filing Form 8300 Coming in January

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Volume XXIII / Is sue 12 / December 2023

TIADA Board of Directors

TexasDealer

PRESIDENT Eddie Hale/Neighborhood Autos PO Box 1719 Decatur, TX 76234 PRESIDENT ELECT Vicki Davis/A-OK Auto Sales 23980 FM 1314 Porter, TX 77365 CHAIRMAN OF THE BOARD Ryan Winkelmann/BJ’s Autohaus 5005 Telephone Road Houston, TX 77087 SECRETARY Greg Phea/Austin Rising Fast 8024 IH 35 North Austin, TX 78753 TREASURER Brad Kalivoda/Fiesta Motors 2599 74th Street Lubbock, TX 79423 VICE PRESIDENT, WEST TEXAS (REGION 1) Cesar Stark/S&S Motors 7699 Alameda Ave. El Paso, TX 77915 VICE PRESIDENT, FORT WORTH (REGION 2) Tyler Simmons/Abilene Used Car Sales, Inc. 2150 N. 1st Street Abilene, TX 79603 VICE PRESIDENT, DALLAS (REGION 3) Greg Reine/Auto Liquidators 39670 LBJ Freeway Dallas, TX 75237 VICE PRESIDENT, HOUSTON (REGION 4) Lowell Rogers/11th Street Motors 1355 N 11th St, Beaumont, TX 77702 VICE PRESIDENT, CENTRAL TEXAS (REGION 5) Chad Lancaster/Chacon Autos 11800 E. Northwest Hwy Dallas, TX 75218 VICE PRESIDENT, SOUTH TEXAS (REGION 6) Cesar Torres/Lofi Motors 4634 Ayers St. Corpus Christi, TX 78415 VICE PRESIDENT AT LARGE Armando Villarreal/McAllen Auto Sales, LLC 4215 S. 23rd St McAllen, TX 78503 VICE PRESIDENT AT LARGE Russell Moore/Top Notch Used Cars 900 East Davis Conroe, TX 77301

TIADA EXECUTIVE DIRECTOR John Frullo 9951 Anderson Mill Rd., Suite 101 Austin, TX 78750 Office Hours M-F 8:30am – 4:30pm 512.244.6060 • Fax 512.244.6218 john.frullo@txiada.org

contents

5

Officers’ Message

by Vicki Davis, TIADA President Elect

9

Legal Corner: Maximum Finance Charge Rates for 2024

by Michael W. Dunagan

10 Upcoming Events 12 TIADA Auction Directory 14 TxDMV Updates

by Daniel Avitia

17 Regulation Matters: Changes to Filing Form 8300 Coming in January

by Earl Cooke

20 TIADA Membership Application 22 Board of Directors Meeting Minutes 24 On The Cover: 2023 Dealer Proficiency Quiz

by TIADA Staff

29 Scholarship Application 31 I Received a Notice of Examination From the OCCC. What can I expect?

by Eric Fancher

34 Local Chapters 35 Save the Date: 2024 TIADA Conference & Expo 39 Considering a Credit Applicant’s Immigration Status: What the Feds Want You To Know

by Jean Noonan

41 New Members 46 Behind the Wheel

by John Frullo

Did You Know?As a TIADA member, you

can submit your legal and compliance questions online anytime by going to txiada.org/legal_ consultation_form and logging in to your account.

Notice to all members concerning services and products: TIADA was established in 1944 to develop professional standards of service and conduct for the independent auto industry. Opinions expressed herein are not necessarily those of the TIADA management, the Board of Directors or the membership. Likewise, the appearance of advertisers or their indemnifications of TIADA does not constitute endorsement of the products or services featured.

Editor: Stephen Pallas

Magazine Ad Sales: Patty Huber, 512-310-9795

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officers’ message

by Vicki Davis

Retirement

R

etirement is a significant consideration that might have crossed your mind. Some people have thought about it, while others may not have given it much thought yet. Determining the right time to start planning for retirement varies from person to person, and each individual will have their own reasons for doing so. Let’s explore the available options: As you approach retirement age, it’s natural to contemplate your future. I’ve had the opportunity to listen to various experts on this topic, including attending a breakout session at the last TIADA convention to gain more insights. Different perspectives exist, so it’s crucial to find what suits you and your company best.

Besides selling your notes, you also need to consider factors such as your employees, inventory, office, and shop equipment. If you own property, you must decide whether to sell or lease it. This decision requires careful thought and consideration.

One option is selling your notes to companies that buy portfolios. However, this process involves providing a data download of your accounts and receiving multiple offers, depending on whether it’s non-recourse or with recourse. Selling your entire portfolio might not yield as much profit as cherry-picking specific accounts.

A-OK Auto Sales (Porter) TIADA PRESIDENT ELECT

Another possibility is passing your business to a capable employee or a family member interested in taking over. Although the specifics of this arrangement may vary, many people have succession plans in place. The successor should possess comprehensive knowledge about the business to ensure a smooth transition.

A third option involves collecting outstanding debts.

To make this financially viable, it’s essential to minimize expenses. Evaluate areas where you can cut costs, such as advertising, phone lines, and software usage.

Consider downsizing your workforce and decide on severance packages or job placement assistance. If you offer warranties, continue honoring them. Determine the necessary staff for your shop and address the handling of repossessed items — whether to sell them for cash or send them to auctions. Organize your files and keep them for a few years in case of audits. If you choose this path, decide when it’s practical to sell the remaining notes. If you have a reinsurance account, plan when and how to withdraw funds and close the account.

Regardless of the path you choose, the decision to retire is significant and not one to be taken lightly. It requires careful consideration and planning to ensure a smooth transition for you and your business.

It requires careful consideration and planning to ensure a smooth transition for you and your business.

December 2023

T e x a s

D e a l e r

5

TIADA Membership Renewal No6ce Dear Member, As we close yet another year, the TIADA staff and our Board of Directors would like to thank you for suppor>ng your associa>on. Your commitment to the associa>on has enabled us to:

•

Be Your Voice at the Capitol. This year, during the 88th Legisla>ve Session, TIADA worked closely with legislators to ensure favorable condi>ons for independent dealers throughout the state, especially in the transi>on away from paper temporary tags. Your membership really maGers and is the source of our strength at the Capitol so TIADA can con>nue to protect your interests now and in the future.

•

Keep you abreast of what is happening in the industry through the Texas Dealer magazine, industry enewsleGer, and txiada.org. Whether it’s compliance, changes to state requirements, new products and services or best prac>ces, our goal is to make sure we are providing the industry informa>on you need in our ar>cles, blogs, and through our social media.

•

Provide Professional Dealership Compliance Consulta6on. We are available and ready to take your phone call or email and assist you with that tricky compliance ques>on. We have a number of aGorneys working with us; If we don’t know the answer (and we usually do) we will find it for you.

Remember that your membership can easily pay for itself by taking advantage of your member benefits, namely the TIADA Auc>on App, where our members have access to over $10,000 in buy/sell fee coupon savings at 50 par>cipa>ng auc>ons across Texas with the vast majority of them now accep>ng coupons for online as well as on-site purchases.

With your renewal, you will receive your 2024 coupons right to your smart phone.

Simply put, TIADA is your associa6on, and we are here to protect your interests and commiHed to seeing you succeed for many years to come. Please do not hesitate to contact us if you have any ques>ons about your membership benefits: www.txiada.org/dealer_benefits.

My very best to you and your family this holiday season, 2024 Membership Dues: $499 Login to your account at txiada.org to renew online

John Frullo TIADA Execu>ve Director

Membership dues paid or gifts given to TIADA are not deductible as charitable contributions for income tax purposes but may be deducted as miscellaneous itemized deductions, subject to IRS restrictions. It is estimated that 20% of your dues dollar is used for lobbying activities and is therefore not deductible.

Company Name: Contact Person: Address: Phone:

Email:

Payment type (please check one): Credit Card #

Check or money order (payable to TIADA) Sec. Code:

Credit Card Exp. Date

Name on Card (please print): Mail to: TIADA Renewals │ 9951 Anderson Mill Rd. Suite 101 │ Austin, TX 78750 Email to: membership@txiada.org 6

T e x a s

D e a l e r

December 2023

Auto Dealer Solutions

Insurance Matters!

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8

T e x a s

D e a l e r

December 2023

legal corner Maximum Finance Charge Rates for 2024

by Michael W.

Dunagan

Dealer Question: What is the

maximum finance charge rate I can use on a motor vehicle retail installment contract?

Answer: Dealers who hold vehicle finance licenses issued by the Office of Consumer Credit Commissioner (OCCC) are authorized to finance the sale of vehicles, and are allowed to add finance charge or time-price-differential to the amount financed (while the term “interest” is commonly used interchangeably with finance charge and time-price-differential, “interest” actually is the amount charged on a loan of money, and should not technically be used in the context of financing the sale of a motor vehicle).

T

he legislature has established a sliding scale of maximum rates, with higher rates allowed on older cars. The maximum rate that sellers of older vehicles can add to the amount financed is $15 per $100 per annum or, stated another way, 15 per cent add on (see accompanying chart). Depending on such variables as the length of the repayment period, the amount

TIADA COUNSEL

Chapter 348 of the Texas Finance Code allows sellers of vehicles to finance any unpaid balance at rates that generally exceed the rates of interest that can be legally charged by banks and traditional lenders. of each payment, and the frequency of payment (weekly, bi-weekly, semi-monthly or monthly), the annual percentage rate on 15 per cent add on can exceed 26 per cent.

Chapter 348 of the Texas Finance Code allows sellers of vehicles to finance any unpaid balance at rates that generally exceed the rates of interest that can be legally charged by banks and traditional lenders.

For purposes of setting maximum rates of finance charge, Chapter 348 establishes four classes of vehicles

based of the vehicle’s model year.

The attached chart shows allowable rates for calendar year 2024. These rates are valid on sales that take place between January 1, 2024, and December 31, 2024. The maximum rates “roll over” on January 1 of each year.

The maximum rates of finance charges are stated in the Finance Code as “add-on” rates. For example, for vehicles that fall into the class-four category, sellers can charge fifteen dollars per one

Maximum Finance Charge Rates for Calendar Year 2024 Class One Two Three Four December 2023

Year Models

Max. Rate

Alternate Rate

2025 and 2024 new Any new not appearing in Class One above; 2024, 2023 and 2022 used 2021 and 2020 2019 and older

7.5 per cent add-on 10 per cent add-on

18 per cent APR 18 per cent APR

12.5 per cent add-on 15 per cent add-on

18 per cent APR 18 per cent APR

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9

Upcoming Events 2024 TIADA DEALER ACADEMY For online registration and information, see www.txiada.org

OTHER TIADA EVENTS

January

29 Board of Directors Meeting

Austin, TX

April

29 Board of Directors Meeting

Austin, TX

July 21 Board of Directors Meeting

JW Marriott Hill Country Resort San Antonio, TX

21-23 TIADA Conference and Expo

JW Marriott Hill Country Resort San Antonio, TX

10

hundred dollars financed per annum. These are maximum rates, and any rate lower than the maximum can be charged.

“Add-on” rates should not be confused with “annual percentage rates” which are the rates required to be disclosed on loans and retail installment sales by federal law. The Annual Percentage Rate (or APR), which appears in the so-called “Fed Box”, will usually be substantially higher than the add-on rate.

All financing sellers, with a few exceptions, are required by federal law to disclose the rate of finance charge as an annual percentage rate, or APR, on their contracts. Since Texas law sets maximum rates as add-on rates, it is necessary to first calculate the amount of finance charge the creditor chooses to assess within the legal limit, then determine the APR for disclosure purposes. Federal Truth-In-Lending requires that any finance charge rate be advertised or expressed to a consumer as an APR. It is thus improper to advertise or discuss addon rates with customers.

The process of calculating the APR on contracts that provide for payments other than equal monthly payments is extremely difficult. Most dealers rely on specialized software (often referred to as dealer management software, or DMS) to perform this function. (For a list of reviewed programs, see the OCCC website at https://www.occc.texas.gov).

Without appropriate software, it is virtually impossible for a creditor who collects weekly, bi-weekly, or semi-monthly payments to accurately calculate an APR and other required disclosures. Dealers should not guess at or estimate an APR as incorrect disclosures are the basis for claims for statutory damages and attorneys fees.

Note that the chart also includes a column for what is referred to as an “Alternate Rate.” This rate is 18 per cent APR for all four classes. Many

dealers have questioned what the alternate rate is, and how it affects the rates they can charge.

The alternate rate is an optional rate. A dealer has the option to use either the standard or alternate rate.

As an example, a dealer financing the sale of a 2018 model- year vehicle can charge up to 15 per cent add-on (since this year model falls into Class Four) or the alternative rate of 18 per cent A.P.R. Since the 15 per cent addon rate translates to over 26 per cent A.P.R. on a typical weekly payment contract, a higher legal return can be achieved using the standard rate than the alternative rate.

On the other hand, the sale of a class-two vehicle would be subject to a 10 per cent add-on maximum.

Since the actual yield on 10 per cent add-on would be lower than 18 per cent, the alternative rate would allow the seller a higher legal return.

OCCC rules also require the disclosure of a “contract rate” which is different from the add on rate and A.P.R. DMS providers that comply with Texas requirements properly calculate and disclose the contract rate. The OCCC website has additional information about maximum rates and contract rates.

Remember that the so-called “add-on rate,” which is the rate used to calculate the finance charge added to a contract, shouldn’t be used on the contract documents or in any communication with consumers, such as advertising. In order that credit consumers can shop rates on an “apples to apples” basis, federal law requires all discussions about rates to refer to the chosen universal rate, or the A.P.R. Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for over 45 years. He has written a number of books and hundreds of articles for trade journals and law reviews. His clientele includes dealers, banks, finance companies, auto auctions and credit unions.

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December 2023

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Save thousands on buy or sell fees at these participating auctions! * VALID FOR SELL FEE ONLY AT INSURANCE AA LOCATIONS ** ONLINE AUCTION AVAILABLE

Abilene

IAA AUSTIN*

IAA DALLAS*

www.allianceautoauction.com 6657 US Highway 80 West, Abilene, TX 79605 325.698.4391 GM: Brandon Denison Friday, 9:45 a.m.

$AVE : up to $200 Sell Fee

$AVE : up to $200 Sell Fee

ALLIANCE AUTO AUCTION ABILENE**

$AVE : $200

IAA ABILENE*

www.iaai.com 7700 US 277, Hawley, TX 79601 325.675.0699 GM: Shaun Lemke Thursday, 9:30 a.m.

$AVE : up to $200 Sell Fee

Amarillo

DAX of AMARILLO** NEW

www.daxofamarillo.com 3208 SE 10th Ave., Amarillo, TX 79104 806.374.8982 GM: Kelsy Allen Every Tuesday, 11:00 a.m.

$AVE : $200

IAA AMARILLO*

www.iaai.com 11150 S. FM 1541, Amarillo, TX 79118 806.622.1322 GM: Shawn Norris Monday, 9:30 a.m.

$AVE : up to $200 Sell Fee

Austin

ADESA AUSTIN**

www.adesa.com 2108 Ferguson Ln., Austin, TX 78754 512.873.4000 GM: Michele Arguijo Tuesday, 9:30 a.m.

$AVE : $200

ALLIANCE AUTO AUCTION AUSTIN**

www.iaai.com 204 Mars Rd., Wilmer, TX 75172 972.525.6401 GM: Terrie Smith Wednesday, 9:30 a.m.

METRO AUTO AUCTION AUSTIN

IAA DFW*

$AVE : $200

$AVE : up to $200 Sell Fee

www.metroautoauction.com 2221 Hwy 21 W., Dale, TX 78616 512.282.7900 GM: Brent Rhodes 3rd Saturday monthly, 9:00 a.m.

www.iaai.com 4226 East Main St., Grand Prairie, TX 75050 972.522.5000 GM: Julissa Reyes Monday, 9:30 a.m.

Corpus Christi

IAA FORT WORTH NORTH*

www.corpuschristiautoauction.com 2149 IH-69 Access Road, Corpus Christi, TX 78380 361.767.4100 GM: Hunter Dunn Friday, 10:00 a.m.

$AVE : up to $200 Sell Fee

CORPUS CHRISTI AUTO AUCTION**

$AVE : $200

IAA CORPUS CHRISTI*

www.iaai.com 4701 Agnes Street, Corpus Christi, TX 78405 361.881.9555 GM: Patricia Kohlstrand Wednesday, 9:30 a.m.

$AVE : up to $200 Sell Fee

Dallas-Ft. Worth Metroplex ADESA DALLAS**

www.adesa.com 3501 Lancaster-Hutchins Rd., Hutchins, TX 75141 972.225.6000 GM: Eric Jenkins Thursday, 9:30 a.m.

$AVE : $200

ALLIANCE AUTO AUCTION DALLAS**

www.allianceautoauction.com 1550 CR 107, Hutto, TX 78634 737.300.6300 GM: Brad Wilson Thursday, 9:15 a.m.

www.allianceautoauction.com 9426 Lakefield Blvd., Dallas, TX 75220 214.646.3136 GM: Robert Kersh Wednesday, 12:30 p.m.

$AVE : $200

$AVE : $200

AMERICA’S AA AUSTIN**

AMERICA’S AA DALLAS**

$AVE : $200

$AVE : $200

www.americasaa.com 16611 S. IH-35, Buda, TX 78610 512.268.6600 GM: Jamie McCollum Tuesday, 1:00 p.m. / Thursday, 1:00 p.m.

www.americasaa.com 219 N. Loop 12, Irving, TX 75061 972.445.1044 GM: Ruben Figueroa Tuesday, 12:00 p.m. / Thursday, 12:30 p.m.

www.iaai.com 3748 McPherson Dr., Justin, TX 76247 940.648.5541 GM: Jack Panczyk Tuesday, 9:30 a.m.

MANHEIM DALLAS**

www.manheim.com 5333 W. Kiest Blvd., Dallas, TX 75236 214.330.1800 GM: Rich Curtis Tuesday 9:30am / Wednesday, 9:00 a.m.

$AVE : $100

MANHEIM DALLAS FORT WORTH**

www.manheim.com 12101 Trinity Blvd., Fort Worth, TX 76040 817.399.4000 GM: Glenna Bishop Thursday, 9:30 a.m.

$AVE : $100

METRO AUTO AUCTION DALLAS**

www.metroaa.com 1836 Midway Road, Lewisville, TX 75056 972.492.0900 GM: Scott Stalder Tuesday, 9:30 a.m.

$AVE : $200

El Paso AMERICA’S AUTO AUCTION EL PASO www.aaaelpaso.com 7930 Artcraft Rd., El Paso, TX 79932 915.587.6700 GM: Judith Ayub Wednesday, 9:30 a.m. MST

$AVE : $200

AMERICA’S AA LONE STAR AUSTIN NEW

DAX of ROCKWALL** NEW

IAA EL PASO*

$AVE : $200

$AVE : $200

$AVE : up to $200 Sell Fee

www.americasaa.com 8408 Shoal Creek Blvd., Austin, TX 78757 214.483.3597 GM: Sara Edgington Friday and Every Other Thursday, 11:00 a.m.

12

www.iaai.com 2191 Highway 21 West, Dale, TX 78616 512.385.3126 GM: Rick Hahn Tuesday, 9:30 a.m.

www.daxofrockwall.com 1810 E I-30, Rockwall, TX 75087 972.771.9919 GM: Tim Clement Tuesday, 6:00 p.m. / Thursday, 2:00 p.m.

www.iaai.com 14651 Gateway Blvd. W, El Paso, TX 79927 915.852.2489 GM: Hector Escobar Wednesday, 9:30 a.m. MST T e x a s

D e a l e r

December 2023

MANHEIM EL PASO**

www.manheim.com 485 Coates Drive, El Paso, TX 79932 915.833.9333 GM: JD Guerrero Thursday, 10:00 a.m. MST

$AVE : $100

IAA HOUSTON SOUTH*

www.iaai.com 2839 E. FM 1462, Rosharon, TX 77583 281.369.1010 GM: Roxy Castillo Friday, 9:30 a.m.

$AVE : up to $200 Sell Fee

Harlingen/McAllen

MANHEIM HOUSTON**

IAA McALLEN*

www.iaai.com 900 N. Hutto Road, Donna, TX 78537 956.464.8393 GM: Ydalia Sandoval Tuesday, 9:30 a.m.

$AVE : up to $200 Sell Fee

BIG VALLEY AUTO AUCTION**

www.manheim.com 14450 West Road, Houston, TX 77041 281.890.4300 GM: Nick Hanson Tuesday, 9:30 a.m.

$AVE : $100

MANHEIM TEXAS HOBBY**

www.bigvalleyaa.com 4315 N. Hutto Road, Donna, TX 78537 956.461.9000 GM: Lisa Franz Thursday, 9:30 a.m.

www.manheim.com 8215 Kopman Road, Houston, TX 77061 713.649.8233 GM: Darren Slack Thursday, 9:00 a.m.

Houston

Longview

www.adesa.com 4526 N. Sam Houston, Houston, TX 77086 281.580.1800 GM: Keyvan Nayeri Wednesday, 9:30 a.m.

www.allianceautoauction.com 6000 SE Loop 281, Longview, TX 75602 903.212.2955 GM: Billy Fitzgerald Friday, 9:30 a.m.

$AVE : $200

ADESA HOUSTON**

$AVE : $200

$AVE : $100

ALLIANCE AUTO AUCTION LONGVIEW**

$AVE : $200

AMERICA’S AA HOUSTON**

www.americasaa.com 1826 Almeda Genoa Rd., Houston, TX 77047 281.819.3600 GM: Buddy Cheney Thursday, 2:00 p.m.

$AVE : $200

AMERICA’S AA NORTH HOUSTON** www.americasaa.com 1440 FM 3083, Conroe, TX 77301 936.441.2882 GM: Buddy Cheney Tuesday, 1:00 p.m.

$AVE : $200

AUTONATION AUTO AUCTION - HOUSTON** www.autonationautoauction.com 608 W. Mitchell Road, Houston, TX 77037 855.905.2622 GM: Juan Gallo Friday, 9:15 a.m.

$AVE : $200

HOUSTON AUTO AUCTION**

www.houstonautoauction.com 2000 Cavalcade, Houston, TX 77009 713.644.5566 GM: Rich Levene Tuesday, 12:00 p.m.

$AVE : $200

IAA HOUSTON*

www.iaai.com 2535 West. Mt. Houston, Houston, TX 77038 281.847.4700 GM: Alvin Banks Wednesday, 9:30 a.m.

$AVE : up to $200 Sell Fee

IAA LONGVIEW*

www.iaai.com 5577 Highway 80 East, Longview, TX 75605 903.553.9248 GM: Ulysses Else Thursday, 9:30 a.m.

$AVE : up to $200 Sell Fee

Lubbock AMERICAS AA LONE STAR LUBBOCK** www.americasaa.com 2706 E. Slaton Road., Lubbock, TX 79404 806.745.6606 GM: Dale Martin Wednesday, 9:00 a.m

$AVE : $75/Quarterly

IAA LUBBOCK*

www.iaai.com 5311 N. CR 2000, Lubbock, TX 79415 806.747.5458 GM: Chris Foster Tuesday, 9:30 a.m.

$AVE : up to $200 Sell Fee

Lufkin LUFKIN DEALERS AUTO AUCTION

www.lufkindealers.com 2109 N. John Reddit Dr., Lufkin, TX 75904 936.632.4299 GM: Wayne Cook Thursday, 5:30 p.m.

$AVE : up to $200 Sell Fee

$AVE : up to $200 Sell Fee

T e x a s

D e a l e r

www.adesa.com 200 S. Callaghan Rd., San Antonio, TX 78227 210.434.4999 GM: Clifton Sprenger Thursday, 9:00 a.m.

$AVE : $200

IAA SAN ANTONIO*

www.iaai.com 11275 S. Zarzamora, San Antonio, TX 78224 210.628.6770 GM: Paula Booker Monday, 9:30 a.m.

$AVE : up to $200 Sell Fee

MANHEIM SAN ANTONIO**

www.manheim.com 2042 Ackerman Road, San Antonio, TX 78219 210.661.4200 GM: Mike Browning Wednesday, 9:00 a.m.

$AVE : $100

SAN ANTONIO AUTO AUCTION**

www.sanantonioautoauction.com 13510 Toepperwein Rd., San Antonio, TX 78233 210.298.5477 GM: Brandon Walston Tuesday, 9:00 a.m

$AVE : $200

Tyler GREATER TYLER AUTO AUCTION** www.greatertyleraa.com 11654 Hwy 64W, Tyler, TX 75704 903.597.2800 GM: Wayne Cook Tuesday, 5:00 p.m.

$AVE : $200

Waco ALLIANCE AUTO AUCTION WACO**

www.allianceautoauction.com 15735 I-35 Frontage Road, Elm Mott, TX 76640 254.829.0123 GM: Christina Thomas Friday, 9:45 a.m.

$AVE : $200

Wichita Falls

DAX of WICHITA FALLS** NEW

www.daxofwichitafalls.com 2206 Sheppard Access Rd., Wichita Falls, TX 76306 940.720.0435 GM: Lisa Shelton Every Other Wednesday, 5:00 p.m.

$AVE : $200

Midland Odessa IAA PERMIAN BASIN*

December 2023

ADESA SAN ANTONIO**

$AVE : $200

IAA HOUSTON NORTH*

www.iaai.com 16602 East Hardy Rd., Houston-North, TX 77032 281.443.1300 GM: Aracelia Palacios Thursday, 9:30 a.m.

San Antonio

www.iaai.com 701 W. 81st Street, Odessa, TX 79764 432.550.7277 GM: Sheila Gray Thursday, 9:30 a.m.

13

feature

TxDMV Updates

by Daniel Avitia

Executive Director Texas Department of Motor Vehicles

Transition from Temporary Tags to Metal Plates

A

nother year has brought yet more change and opportunity for the ongoing partnership between the Texas Independent Automobile Dealers Association (TIADA) and the Texas Department of Motor Vehicles (TxDMV). I am grateful for the support and input from TIADA and member dealerships across the state as we tackled the challenges of the last year. Your contributions and engagement in the department’s efforts to continue improving motor vehicle regulation in Texas has never been more critical, and we will be asking for your thoughts again throughout the coming year.

The most significant change for TxDMV since last December was the completion of the regular legislative session in May. The Texas Legislature enacted 70 bills impacting department operations in both major and minor ways; those bills have resulted in more than 80 implementation projects to meet the new statutory requirements and serve the people of Texas. Perhaps the most consequential, and complicated, of these efforts is the implementation of House Bill 718, by Representative Craig Goldman (Fort Worth) and Senator Royce West (Dallas).

14

In last year’s TxDMV article, I wrote about numerous ongoing activities to address historic temporary tag abuses by fraudulent actors and mitigate the prevalence of such actions in the future. While the legislature was supportive of our efforts, they felt bad actors continued to rapidly move beyond our solutions, and passed House Bill 718 as a response.

The bill alters statutory requirements and regulatory structures related to vehicle sales and registration — replacing paper temporary buyer tags with metal plates. These metal plates are the permanent plates that will be registered for the buyer with the county, not temporary metal plates to be replaced at the completion of vehicle titling and registration. In addition to the dealer placing the plates on the vehicle at the time of delivery to the buyer, the buyer will be required to keep a new sales receipt in the vehicle until the title and registration processes are complete and the window sticker is delivered.

These new requirements and processes will mean that dealers must maintain, secure, and manage an inventory of metal plates so they can affix them to a vehicle at the time of vehicle delivery without inconveniencing the customer. We recognize that this change represents a significant shift in your standard business processes, as well as our enforcement and compliance operations. The good news is that the changes will not take effect until July 2025, so we have time to work with dealers, manufacturers, tax assessor-collectors, law enforcement, and other involved stakeholders to build a process that meets your operational needs as closely as possible while ensuring we are achieving the public safety standards intended by the legislation. To do this effectively we will need input and engagement from TIADA and your dealerships to understand your needs and the ultimate impact of any decisions we make.

Opportunities for Dealer Input and Engagement

While there are many elements involved in implementing HB 718 — obtaining a more robust inventory management system, designing new metal plates for new uses, and producing and distributing metal T e x a s

D e a l e r

December 2023

plates throughout the state in advance of their use in the car buying process — the development and adoption of administrative rules is expected to be the most impactful to our stakeholder populations and business partners.

The administrative rules will define the operations and processes required by the elimination of temporary tags and set the expectations and ground rules to help you adjust your business practices. Because of the incredible importance of input and feedback from those groups most affected by these changes, we intend to provide multiple opportunities for TIADA, individual dealers, and members of the public to comment on the drafts throughout next year.

Department staff are already working to draft initial proposals for the rules, explaining the internal policies and external requirements that will be in place when the bill takes effect in July 2025. These initial proposals will be based on the statutory requirements included in the legislation and the department’s understanding of the most effective way to implement the changes. We expect to distribute draft proposals to stakeholder associations, legislative offices, and TxDMV Board advisory committees in early calendar year 2024 for review and comment.

Comments received at that time will help us refine the proposals prior to presentation of revised drafts to the TxDMV Board in June 2024. With the Board’s approval, the drafts will be released for public review and comment, providing all dealers and stakeholders another opportunity to provide input. The TxDMV Board will consider adoption of final rule proposals during the fall of 2024, a schedule driven by the bill’s requirement that rules related to HB 718 implementation be adopted no later than December 1, 2024.

We have built an implementation process centered on the idea of full transparency and public input to ensure we hear from all interested parties. Once the rules are adopted, the department will have seven months to work with TIADA and dealers on education and awareness of the final process requirements before the new processes become effective.

Importance of Technology to Transaction Processing

With the expansion of distribution of metal plates to all actively licensed dealers in advance of vehicle sales, technology will become an even more important component in managing vehicle titling and registration transactions. The department is looking to

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December 2023

T e x a s

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15

improve related technology through a separate project to modernize the Registration and Titling System (RTS) and enhance plate production, distribution, and related controls by obtaining a more robust inventory management system. But technology only helps if it is appropriately and consistently used. To that end, HB 718 contains a requirement for all dealers to use the webDEALER transaction system for the electronic processing of title and registration applications.

While this requirement is not effective until July 2025 when the metal plate changes take effect, the system is available today to any dealers who want to begin using it to process sales transactions. In fact, most transactions are already processed through webDEALER. If you are not currently using webDEALER to process title and registration applications, we encourage you to reach out to your county tax offices to set up access to the system as soon as possible. Transitioning dealers over to the system evenly over the next 18 months will ensure assistance and resources are available to everyone and no backlogs or delays result that could impact dealer operations.

Department staff from the Vehicle Titles and Registration, Motor Vehicle, and Consumer Relations divisions are available to provide technical assistance

and education about the system’s functionality. We also have educational and instructional materials on the TxDMV website providing webDEALER 101 information, webDEALER resources and training materials, and system troubleshooting help. Once you start using the full functionality of webDEALER you will see how efficient and quick it is.

Final Thoughts

The Texas Department of Motor Vehicles remains grateful for the renewed and productive relationship we have built with TIADA over the last two years.

It is a relationship that we will not take for granted because it benefits us all. Please know that we want dealers throughout the state to feel comfortable reaching out to the department, either individually for assistance with unique concerns, or through TIADA staff for issues central to the support and benefit of all dealers. While it is our responsibility to regulate the automotive industry in Texas, we want to do so in a cooperative and responsible way that supports the economic, transportation, and social benefits inherent in a robust dealer network. We look forward to continuing to work with you through the coming years.

6/22

16

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regulation matters Changes to Filing Form 8300 Coming in January

O

8300

nts Over $10,000 Report of Cash Payme or Business Received in a nsTrade for definition of cash.

8300 n January 1, 2024, IRS Form 8300 must be filed electronically. It is essential for independent dealers to understand IRS Form 8300. Let’s unravel the layers of this critical reporting requirement and equip you with the knowledge you need to stay } compliant. Generally, if you’re in a trade or business and receive more than $10,000 in cash in a single transaction or in related transactions, you must file Form 8300. With that change in mind, this article explores what this form is, who must file, and the recent change to the law.

The Form 8300, Report of Cash Payments Over $10,000 in a Trade or Business, provides valuable information to the Internal Revenue Service and the Financial Crimes Enforcement Network (FinCEN) in their efforts to combat money laundering.

Money is “laundered” to conceal illegal activity, including the crimes that generate the money itself, such as drug trafficking, tax evasion and terrorist financing.

IRS Form

FinCEN Form (Rev. August 2014) OMB No. 1506-0018

of the Treasury versions after this date. Department Financial Crimes 29, 2014. Do not use prior s occurring after August Enforcement Network page.

Act Notice, see the last Paperwork Reduction n.

For Privacy Act and Suspicious transactio Department of the Treasury b Internal Revenue Service Amends prior report; a if: Received Check appropriate box(es) . . . .▶ Was .

1 .

Cash . . the . . . . .

From Whom . . . . . . . on number Identity of Individual Part I and see instructions 6 Taxpayer identificati 5 M.I. is involved, check here 4 First name If more than one individual 2 Y Y Y Y Last name 3 . ▶ M M D D 8 Date of birth . . (see instructions) and apt. or suite no.)

Address (number, street, profession, or business 7 Occupation, 13 12 Country (if not U.S.) 10 State 11 ZIP code ▶ See instructio

(Rev. August 2014)

▶ Use this form for transaction

9

City

14

Identifying document (ID)

a Describe ID c Number ▶

b Issued by

Was Conducted

15 16

This Transaction s . check here and see instruction more than one person, 18 M.I. conducted on behalf of 17 First name If this transaction was or organization’s name Individual’s last name

20

Doing business as (DBA)

21

Address (number, street,

23

City

27

▶ a Describe ID Alien ▶ identification (ID) c Number

.

▶

. .▶ . . . . . . . on number 19 Taxpayer identificati Employer identification

s)

name (see instruction

24 State

Descrip

following the reportable transaction. This statement must include the name, address, contact person and telephone number of your business and the aggregate amount of reportable cash. The statement must also indicate that you provided this information to the IRS. Persons who file the required Form 8300 and do not provide a written statement to each person named on Form 8300 are subject to penalties. Penalty amounts are adjusted annually for inflation.

Keep in mind, when Forms 8300 filed due to suspicious activity that are filed under the $10,000 threshold and box 1b is checked off on the form, the statement is not to be provided to the individuals identified on the form. Forms filed under the dollar threshold are not required to be filed. Filing under the threshold is done on a voluntary basis. IRS highly encourages you to file suspicious activity when identified regardless of the dollar amount. Forms marked as suspicious are also treaded confidentially.

26 Country (if not U.S.)

25 ZIP code

29 Total cash received

number

, or business

22 Occupation, profession

and apt. or suite no.)

b Issued by

t

Method of Paymen tion of Transaction and

Part III

TIADA DIRECTOR OF COMPLIANCE AND BUSINESS DEVELOPMENT

▶

Person on Whose Behalf

Part II

by Earl Cooke

30

If cash was received in more than one payment, ▶ check here . . .

▶

31 Total price if different item 29

from

.00 Date cash received $ Y Y Y M M D D Y .00 $ (see instructions): ) (must equal item 29) .00 ) (in U.S. dollar equivalent or higher $ Amount of cash received (Amount in $100 bills .00 ) $ a U.S. currency (Country ▶ t(s) ▶ instrumen .00 monetary $ the number(s) of b Foreign currency Issuer’s name(s) and serial .00 $ c Cashier’s check(s) .00 $ d Money order(s) .00 $ shown in e Bank draft(s) n of property or service .00 $ 34 Specific descriptio f Traveler’s check(s) n number, address, docket 33. Give serial or registratio Type of transaction Debt obligations paid 33 f number, etc. ▶ Personal property purchased a Exchange of cash g Real property purchased funds b trust or Escrow h clerks Personal services provided c Bail received by court i 34) ▶ Business services provided d Other (specify in item j Intangible property purchased on number e 36 Employer identificati

28

32

Part IV

d Cash

Business That Receive

received cash

35

Name of business that

37

Address (number, street,

39 State

38

City

42

Under penalties of perjury, and complete.

M

IRS Form 8300 (Rev.

M

D

8-2014)

D

Y

40 ZIP code

I declare that to the best

of my knowledge the

Cat. No. 62133S

A “person” who must file Form 8300 includes an individual, company, corporation, partnership, association, trust or estate.

You must file Form 8300 electronically with FinCEN, or in paper-form with the IRS, if any part of the transaction occurs within any of the 50 states, the District of Columbia or a U.S. possession or territory (American Samoa, The Commonwealth of the Northern Mariana Islands, Guam, Puerto Rico and the U.S. Virgin Islands).

You must file Form 8300 within 15 days after the date the cash transaction occurred.

Besides filing Form 8300, you also need to provide a written statement to each party whose name you included on the Form 8300 by January 31 of the year

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Title

Authorized official name of contact person Y Y 44 Type or print

Y

Who Must File

When to File

41 Nature of your business

▲

43 Date of signature

▲

Signature

Social security number

and apt. or suite no.)

information I have furnished

above is true, correct,

45 Contact telephone

number

FinCEN Form 8300

(Rev. 8-2014)

How to File

Effective January 1, 2024, you must electronically file (e-file) Forms 8300 if you’re required to e-file other information returns, such as Forms 1099 series and Forms W-2. You must e-file your Forms 8300 if you’re required to file at least 10 information returns of one or more type(s) other than Form 8300 during a calendar year.

For example, if you’re required to file five Forms W-2 and five Forms 1099-INT, then you’re required to file certain other information returns during that year electronically, including any Forms 8300. However, if you file less than 10 total information returns other than Forms 8300, you’re not required to file the 17

information returns electronically and not required to file any Forms 8300 electronically. The number of Forms 8300 you file does not affect the electronic filing requirement.

Keep in mind, if you’re not required to e-file, you can still choose to do so.

Businesses that are not required to file their Forms 8300 electronically that choose to physically mail in their Forms 8300 to the IRS, will send their forms to: Internal Revenue Service Detroit Federal Building P.O. Box 32621 Detroit, MI 48232

Waivers

You may file a request for a waiver from filing information returns electronically due to undue hardship. For more information, refer to Form 8508, Request

for Waiver from Filing of Information Returns PDF. If

the IRS grants you a waiver from electronically filing information returns, the waiver automatically applies to all Forms 8300 for the duration of the calendar year.

You must include the word ‘WAIVER’ on the center top of each Form 8300 (Page 1) when submitting the paper filed returns.

Note: Waivers for electronic filing are not required when

business files less than 10 total information returns other than Forms 8300.

Exemptions

If using the technology required to e-file conflicts with your religious beliefs, you are automatically exempt from filing Form 8300 electronically. You must include the words “RELIGIOUS EXEMPTION” on the center top of each Form 8300 (Page 1) when submitting the paper filed returns.

Penalty for Paper Filing

If you are required to e-file but file by paper and you don’t have a waiver or religious exemption, you will be subject to a failure to file penalty.

Late Returns

You must identify late returns.

You must file a late Form 8300 in the same way, either electronically or on paper, as a timely filed Form 8300. When filing a late Form 8300 electronically you must include the word “LATE” in the comments section of the return. When filing a late Form 8300 on paper you must write “LATE” on the center top of each Form 8300 (Page 1).

Note: Failure to file timely includes a failure to file in the required manner. If you are required to file electronically and failed to do so, Form 8300 would be considered late. Forms 8300 that are late are subject to penalty.

Recordkeeping

Remember, you must keep a copy of Form 8300 for five years.

When e-filing, be sure to save a copy of the form before you finish submitting the return.

Confirmation receipts don’t meet the recordkeeping requirement.

You should associate the confirmation number with the saved copy.

18

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December 2023

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TIADA texas independent automobile dealers association

Become a TIADA Member

TIADA texas independent automobile dealers association

Business Name: ____________________________________________ Select one:

Dealer Member

Associate Member

Contact Person: ____________________________________________ Address: __________________________________________________ City: _________________________________________ State: _______ Zip: __________________ County: _____________________________ E-mail address: _____________________________________________ Business Phone: _______________________Fax: ________________________ Cell Phone: ___________________________________________ Dealer P Number: ___________________________________________

Membership Dues: $499 New Member

Good through 12/31/2024.

Pay full amount today and receive the rest of 2023 for free.

Renewing Member

good through 12/31/2023.

Dues include NIADA and local chapter membership where applicable.

Who referred you to TIADA? __________________________________ Mailing Address (if different from above): __________________________________________________________ City: _________________________ State: _______ Zip: ___________

PLEASE INDICATE PAYMENT METHOD: Check or Money Order payable to TIADA Check # __________ Credit Card Card Number: __________________________________________________ Sec.Code: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Expiration Date: ____________ Monthly Payments - $41.58 per month Via Credit Card (Please enter card information above)

Mail or Fax Application To: TIADA Membership Services 9951 Anderson Mill Rd., Suite 101, Austin, TX 78750 FAX 512.244.6218

www.txiada.org

512.244.6060

Dues are not deductible as charitable contributions for income tax purposes but may be deductible as miscellaneous itemized deductions, subject to IRS restrictions. It is estimated that 20 percent of your dues dollars is used for lobbying activities and is therefore not deductible.

20

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December 2023

o

tex

dealers

as ind

le

ep

e

nt autom

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e nd

a s TIADA n s o c i at i o

Recruitment Challenge *

Have a cup of coffee on us.

Actually, have 4 cups. Recruit a new member and we will send you a $10 gift card — and we’ll do that for the first 4 members you recruit.

Receive top-notch education.

Recruit 5 new members by June 30th and you will receive one free registration to the 2024 TIADA Conference & Expo.

JULY 21-23, 2024 SAN ANTONIO, TX

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Relax with the family and turn work into pleasure.

Recruit 10 new members by June 30th and you will also receive your hotel room for free (up to two nights) at the JW Marriott Hill Country Resort in San Antonio during the TIADA conference.

Travel to Vegas, Orlando or somewhere else!

Recruit 20 members and you will receive an all-expense trip for you and a guest to attend 2025 NIADA Convention & Expo.

* This promotion is only valid for active dealer members.

Contact TIADA for details.

512.244.6060

board of directors meeting minutes October 30, 2023 | Cambria Hotel Austin Uptown

by TIADA Staff

Board Members in Attendance: Lowell Rogers, Russell Moore, Greg Reine, Vicki Davis, Eddie Hale, Ryan Winkelmann, Brad Kalivoda, Greg Phea, Tyler Simmons, Cesar Torres, and Armando Villarreal.

TIADA Staff in Attendance: John Frullo, Earl Cooke, Teresa Orkun, and Patty Huber. Stephen Pallas joined

remotely for part of the meeting.

At its meeting on Monday, October 30, 2023, TIADA took the following actions:

Moved by Greg Phea, seconded by Lowell Rogers - PASSED

President Eddie called the meeting to order at 12:58 p.m.

President’s Report

A motion was made to accept the minutes.

Eddie Hale discussed TIADA’s attendance at the El Paso IADA golf event, the NIADA Policy Conference and the Corpus Christi and Donna Townhall dealer meetings. He also shared the committee appointments with the board.

Board members reported on their member outreach calls.

Moved by Vicki Davis, seconded by Brad Kalivoda - PASSED

Executive Director’s Report

Minutes of Last Meeting

Secretary Greg Phea presented the minutes from the last meeting.

Treasurer’s Report

Treasurer Brad Kalivoda presented the Treasurer’s Report.

A motion was made to accept the Treasurer’s report.

Executive Director John Frullo updated the board on recent staff changes and reported on various meetings and conferences staff attended. He gave an update on the Lobbyist situation and accounting firm changes and provided a report on the 2023 Conference & Expo.

Associate Executive Director Teresa Orkun presented a report on dealer professional development and membership.

THURSDAYS 3 AM SALE STARTS at 9:00

Director of Associate Member Relations Patty Huber presented an associate member update.

8:30 AM SALVAGE AND INOPS SALE

Brad Kalivoda presented the FY’23 and FY’24 budgets.

MONTHLY: GSA General Services Adminitration— open to the public www.autoauctions.gsa.gov

Staff reported on the progress of the first two years of the Five-Year Strategic Plan.

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Director of Business Development and Compliance Earl Cooke presented a report on governmental relations.

New Business

A discussion took place regarding the different fraud scenarios dealers are facing.

A motion was made to adjourn the meeting.

Moved by Greg Phea, seconded by Cesar Torres - PASSED Eddie Hale adjourned the meeting at 5:13 p.m.

Respectfully submitted, Greg Phea, Secretary A complete copy of any reports referenced in this document and more detailed notes from the meeting are on file at the TIADA office and available upon request.

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December 2023

W hy Choose Us? W hy Choose Us? • 40 Years Serving Texas Dealers • 4.9 Star Avg. Customer Rating • Independently Owned

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M U L L ENINSU RANC E.C O M

on the cover

by TIADA Staff

24

[Editor’s note: The first ten questions have been taken from information that appeared in the “Legal Corner” section of Texas Dealer magazine in 2023. The five bonus questions at the end come from information that has appeared in our industry emails and/or blogs posted on the TIADA website this year.]

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December 2023

Compliance Questions 1 . In what year did TIADA’s deferred sales tax bill get passed by the Texas legislature? (a) 1993 (b) 2015 (c) 1999 (d) 2001

2. A liability insurance company, when settling a case for damages to collateral which is subject to a recorded lien caused by their insured:

6. True or False:

If more than 60 per cent of the original purchase price of the vehicle has been paid to the car creditor prior to repossession, the creditor must use the strict foreclosure procedure.

7. The alternative (18 percent APR) maximum finance charge can be used:

(a) Only if the yield would be less than the maximum stated add-on rate. (b) Only if the yield would be more than the maximum stated addon rate. (c) On any transaction. (d) On any transaction that falls outside the four model-year categories.

(a) Must include any recorded lien holders’ names on all settlement checks issued to cover damage to the collateral. (b) Must make all checks for property damage payable to both the owner and lien holder 8. True or False: if the amount exceeds $5,000.

Under the 2021 U.S. Supreme (c) Must investigate lien status only Court’s decision in the City of if the damage exceeds $2,000.

Chicago v Fulton case, a car creditor (d) May pay the repair shop who repossesses the collateral prior directly to avoid including the to the debtor’s filing of bankruptcy lien holder in the settlement. can retain the vehicle and resell it outside the bankruptcy case.

3. True or False: Texas law requiresa 14-day 9. House Bill 4142, passed grace period after payment by the 2023 session of the due date beforea motor vehicle Texas Legislature, adds a retailinstallment contract can be provision to Chapter 61 declared to be in default.

4. True or False:

A person making a claim on the bond that was filed with a bonded title does not have to first obtain a court judgment to establish the validity of his claim.

5. Which of the following puts a creditor on official notice that a debtor has filed bankruptcy: (a) A hand-written note from the debtor. (b) A file-marked notice from a bankruptcy court. (c) A fax from the debtor’s attorney’s office. (d) A phone call from the debtor. (e) All of the above.

December 2023

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of the Property Code that requires liability insurance carriers to:

(a) Use due diligence in assessing vehicle liability claims (b) Pay attorneys fees to a prevailing lien holder who sues to enforce its rights to proceeds under Chapter 61 (c) Pay valid liability claims within 60 days (d) Cancel the policy after paying a claim

10. APR is the abbreviation for: (a) Average payment residual (b) Assigned parental rights (c) Always prepared (and) ready (d) Annual percentage rate

Bonus Questions 1 . When a customer fails to make the first (or second) payment, and the dealer repossesses the vehicle before applying for title and registration, does the dealer still have to transfer the vehicle? (a) Yes (b) No (c) It Depends

2. True or False:

TxDMV has taken the position that an electronic signature may be used on any non-secure document submitted to a county tax assessorcollector’s office or the department, whether submitted electronically through webDEALER (including webSALVAGE) or physically provided on the paper document.

3. What is the effective date of the elimination of paper temporary tags? (a) January 1, 2024 (b) July 1, 2024 (c) January 1, 2025 (d) July 1, 2025

4. When is or was the deadline for implementing the new FTC Safeguards Rule requirements? (a) December 9, 2022 (b) June 9, 2023 (c) December 9, 2023 (d) June 9, 2024

5. How much is the new annual fee for electric vehicle registration in Texas? (a) $100 (b) $150 (c) $200 (d) $400

Answers can be found on page 43.

25

Please fill out the form on the next page to help our efforts out at the Capitol!

Thank you to all those who have contributed to INDEPAC in 2023!

A List of INDEPAC ** Contributors through October Bathija, Navin Blankenship, Erika Brown, Mark Browning, Justin Bryan, Kaleb Buchelly, Harry Christian, Amos Cockerell, Clint Cooney, Michael Davis, Brad Davis, Vicki Downey, Mike Edenfield, Robert* Fox, Rob Goodman, Jason* Gregory, Tommy* Hagler, Keith & Marcia* Hale, Eddie Hanson, April*

Hobson, James In Memory of Mario Martinez Jones, Mark* Kanelakos, Collin Kaya, Selcuk Keate, Kyle Labaj, Kanton Lathrop, Phillip Lazo, Deyla Lucio, Jesse Milligan, Robert Moore, Russell* Murphy, Bill Peters, Mark Petersen, Shaun Reine, Greg Rice, Jenissa Rodriguez, Edgar*

Rogers, Lowell* Ruckel, Matt Sabillon, Juan M. Sanchez, Hugo Scott, Paul Simmons, Tyler* Smith, Linda Sommer, Ariad Stark, Cesar Sutton, James Torres, Cesar Turan, Jon Tutor, Corinna Villarreal, Armando Winkelmann, Janette Winkelmann, Ryan* Zak, Gregory* Zak, Michael

*Monthly donor **Special thanks to our anonymous donors

Total Contributions in 2023 to Date 26

$76,020 T e x a s

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December 2023

Yes, I would like to help with TIADA’s grassroots effort!

Please list me as a sustaining donor. I would like to support my industry by making a monthly credit card donation of $______________ Add me to the KEY-PERSON list! I know (Name of Legislator) _______________________________________________ as a ____ Acquaintance

____ Personal Friend

____ Professional Contact

I would like to attend political fundraisers in my area I would like to support my industry by pledging a one-time donation of ___$1,000

___$500

___$250

___$100

Other $________

______________________________________________________________________________________

____ Personal Check Payable to INDEPAC

_____Personal Credit Card

Name_______________________________________________________________________________ Company ____________________________________________________________________________ Home Address________________________________________________________________________ Email _______________________________________________________________________________

** Personal Check or Personal Credit Card only. Corporate contributions are prohibited by state law.

Contributions are not tax deductible as charitable contributions for federal income tax purposes. ** Charge my Credit Card V MC D AM __________________________________________________ Exp: _____/_____ CVV: _____ Name on Card: ____________________________________________________________________________ Card Billing Address (if different):

______________________________________________________

______________________________________________________________________________________

Or donate online at www.txiada.org >> Resources >> Advocacy >> Political Action Committee

______________________________________________________________________________________

c/o TIADA 9951 Anderson Mill Rd

Referred by:

Suite 101, Austin Texas 78750

PHONE 512.244.6060 FAX 512.244.6218 EMAIL accounting@txiada.org

December 2023

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Name:

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Address: City:

Criteria and Guidelines 1. Each applicant must be entering or currently enrolled in an accredited college or a trade school. Proof of enrollment must be included with this application.

State:

Email: (You will receive an email confirmation of receipt.)

Telephone Number: High School Last Attended:

2. Each applicant must provide a letter from their TIADA member sponsor that includes the sponsor’s address and phone number.

Address:

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Date of Graduation:

4. A copy of high school transcripts is required for applicants who are college freshmen. If applicant is currently enrolled, provide college transcripts with official university imprint.

Other High Schools Attended (Names and Addresses):

5. Provide a detailed description of participation in any academic, honorary, civic or extracurricular activities in college. In addition, a detailed description of high school activities is required from college freshmen along with a college acceptance letter.

6. Compose an essay of no more than two typed, double-spaced 8 ½” x 11” pages. The essay should discuss the applicant’s relationship with their TIADA scholarship sponsor, current education goals and future aspirations as it relates to the applicant’s subject/training area.

7. Provide at least two (but no more than three) letters of recommendation, no older than one year, from college/high school faculty, employers or other appropriate sources (not related).

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Zip:

City:

State:

Zip:

Dates of Attendance:

College(s) you are attending or plan to attend for admission:

Parents Name(s): TIADA Member Name (Sponsor): TIADA Member Company Name: TIADA Member Address: City:

State:

Zip:

Sponsor Signature Should you have any questions, please contact TIADA at 512.244.6060. Please return the completed application with all required documents to: TIADA Attention: Scholarship Applications 9951 Anderson Mill Rd. Suite 101, Austin, TX 78750

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feature

I Received a Notice of Examination From the OCCC. What Can I Expect?

by Eric Fancher OCCC

T

he OCCC performs examinations to determine and ensure compliance with the Texas Finance Code, its administering regulations, and other applicable state and federal law. Examinations are routine and every licensee has been or will be examined. The agency’s goal is to foster and promote compliant business practices, thus examinations are “compliance examinations,” not “audits.” Examinations are beneficial and can validate good business practices. Compliant business practices protect consumers and provide for a level playing field. Accordingly, each licensee is encouraged to have a system in place to monitor and self-test for compliance. The OCCC calls this “CMS,” short for “compliance management system.”

Examination of any licensee holding a Motor Vehicle Sales Finance license begins with notification. Examiners are required by law to notify a licensee prior to arriving

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for an examination. Notification is made by email through the licensee account in ALECS using the information on file. Accordingly, and by regulation, all licensees are required to ensure their information is up to date and accurate, naming the person within the business who is responsible for compliance (“compliance officer”), their email address, and phone number. Incorrect information won’t prevent an examination, but it may cause an unnecessary delay.

[Reminder – Keep your ALECS user ID and passwords secure and be careful who you trust with your credentials if you delegate access to others] Although not required, examiners will likely try and make contact by phone or email, before or shortly after the ALECS notification, to introduce themselves, answer 31

any questions about the process, and to establish a date and time agreeable to both. Within reason, examiners will accommodate schedules, but it is important to remember that the examination will occur during regular business hours.

Many licensees ask, “how do I prepare?” The Finance Code authorizes examiners free access to a licensee’s place of business, office, files, and anywhere records may be kept. This includes access to computers and

software programs used to prepare or service financed sales. If dealer management system (“DMS”) software is used and has assigned users, temporary login credentials may be required for the examiner to access transactions. Also, know the software, how to run reports, and how to reach tech support if questions arise. This includes tech support for so-called dealer portals and websites that certain finance sources require dealers to use. Other than providing

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access to records, the examiner must be provided with a place to work and reasonable access to account records. Because the examiner will be working with records containing sensitive private personal information, it is best to provide a desk or office that is at least semi-private and secure. As a reminder, examinations are confidential, but examiners must be allowed to make copies or scans of records as necessary.

Another common question is “what records must I keep?”

Generally, any document or record prepared for or related to a financed sale is likely a record needed to prove compliance. There are three regulations that list specific records that must be maintained, depending on the nature of the business.

However, records other than the required records may be needed to prove compliance and may be requested pursuant to Texas Finance Code, Sec. 348.517. An example might be the VIT factor letter sent each year by the county taxing authority. Additionally, it is important to know that although the OCCC does not regulate cash sales, wholesale, rentals, or leases, nor does the agency examine sales in which the purpose of the vehicle is designated for commercial use, the OCCC has the authority to look at any transaction to determine if it falls within examination authority.

[Fun fact – The most common missing required record is . . . the Application for Texas Title and/ or Registration, form 130-U. Please make a copy of the completed and signed 130-U for the buyer’s file. It is a required record for any retail sale, financed or cash.]

Regarding the examination process, for a seller who assigns or sells contracts to financial institutions, the examiner will ask for a list of all financed sales. For a buy-here-payhere dealer, in addition to a list of all financed sales, the examiner will ask

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for a list of all open accounts and a list of all repossessions. These are lists required to be maintained by regulation. A list of paid accounts is helpful, but not required.

The examiner may select a sample of transactions to review from the lists or select files right from the filing system. Keep in mind, part of the examination process is to determine that records are adequately maintained and secure.

Once transactions are selected, the examiner will thoroughly examine all related records. The origination examination will be of the contract and all supporting records to check for completeness, accuracy, and to substantiate each disclosure, charge, or credit contained within. Each line-item will be scrutinized and compared with supporting documentation. Again, supporting documentation includes applicable records required by regulation as well as other supporting documentation proving compliance.

For sellers collecting on retail installment transactions, the examination continues to account servicing. The examiner will perform an in-depth analysis of open, paid, and repossession accounts. For open and paid accounts, the examination will include the account history (ledger), collection notes and correspondence, and release of lien and title for paid accounts. For all accounts, examiners will test for the correct beginning and final balances,

application of payments, correct finance charge, and collection of late fees and other charges.

For accounts resulting in repossession, the examination will include default, disposition, and redemption records. Examiners will verify the default and that commercially reasonable disposition occurred. This includes determining the appropriate disposition notice was provided, and the account record correctly reflects the disposition. Regardless of the method of disposition, any expenses charged or added to the account balance will be verified by receipts for those out-of-pocket expenses. If a redemption occurs, examiners will verify the amounts paid by the buyer were authorized and accurate.

For disposition by acceptance of collateral, examiners look for the appropriate notice and verify the account balance was waived to a zero balance. For disposition by public or private sale, examiners will review the sale and the application of proceeds to derive the final outstanding balance. If the sale resulted in a surplus balance, examiners will verify the surplus was distributed to the buyer or other entitled party. For a deficiency balance, examiners will verify proper notice was provided prior to any attempt to collect the remaining balance.

Throughout the examination, the examiner will make note of any non-compliance. Non-compliance violations are called a “finding.” A report of findings will be

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Local Chapters CORPUS CHRISTI G.R. Moore The Car Shack (dates announced at

www.txiada.org)

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FORT WORTH Jerry Smith H J Smith Automobiles (dates announced at

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delivered through ALECS upon conclusion of the examination. The report will identify each finding, provide the law, regulation, or contract provision that was violated, and describe the corrective action.

The examiner should review each finding and the action required to correct and prevent the errors in an exit interview. To be clear, most examination findings are easily corrected going forward and do not result in material consumer harm. However, on occasion, a finding of monetary harm will require corrective action to be taken, which may include a refund to the buyer or a credit to the account.

Keep in mind, refunds are not penalties. Refunds are required when more was charged or collected than legally authorized, or more than the buyer was contractually obligated to pay.

[Reminder – The most common monetary finding is license, title, registration, or inspection fee overcharges. Fees may be different from sale to sale or change over time.

Monitoring in real-time can prevent overcharges and should be part of a robust compliance program in your business.]

More serious or systemic findings may result in Special Instructions in the report. Special Instructions require a written response, usually within 60 days of the report date.

Depending on the seriousness of the findings, a follow-up examination may also be required.

Finally, the OCCC understands honest mistakes occur. The OCCC’s examination program is designed to test, fix, and prevent reoccurrence of non-compliance. Accordingly, the OCCC encourages all licensees to have a robust process or compliance management system in place with real-time monitoring of financed sales.

The information presented in this article is for general and informational purposes only and is not a formal interpretation of statutes or regulations. If you have any questions or seek additional information about examinations and compliance, please reach out to the author or to the OCCC directly.

Eric Fancher is a Senior Financial Examiner specializing in auto finance exam operations and industry outreach. Eric may be reached via email at eric.fancher@occc.texas.gov or you may contact the OCCC directly by calling (512) 936-7600.

HOUSTON Robert Edenfield Mi Pueblo BRP Meeting – 2nd Tuesday (Monthly)

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On-Demand Offerings

Featured Courses TIADA designed and implemented some important on-demand courses to give dealers quality educational programs they can access throughout the year. These programs are essential for dealers to stay compliant. They offer flexibility, so you can complete them according to your schedule. These courses are designed for any dealers with questions related to various regulations that affect their businesses.

Repossession 101: What You Need to Know In this two-part video course TIADA counsel Michael Dunagan answers repossession related questions for both the dealer starting out and those dealers who want a refresher. Dunagan goes through the basics of self-help repossession, repossession when a client has filed bankruptcy, and using the courts to regain collateral through sequestration. The course also covers all the repossession letters and includes a downloadable deck of slides to follow along with the course.

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The Basics of Transferring Titles* Want to avoid having your title transfer paperwork rejected at the tax office? This online course is designed to walk you through the title transfer process and is best suited for people new to transferring titles or those who want to brush up on the basics. This course has been reviewed for accuracy by the Tax Assessor-Collectors Association of Texas.

$48 for the course

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feature

Considering a Credit Applicant’s Immigration Status: What the Feds Want You To Know

by Jean Noonan

Hudson Cook, LLP

T

he Consumer Financial Protection Bureau and the U.S. Department of Justice made a splash last month with a joint statement — “Fair Lending and Credit Opportunities for Noncitizen Borrowers under the Equal Credit Opportunity Act.” But the result might have you paddling through murkier compliance waters rather than clearer ones.

First, let’s review the long-standing rules. The ECOA prohibits discrimination based on race and national origin. At a minimum, a creditor cannot favor credit applicants who come — or whose ancestors came — from, say, England over those from Nigeria, China, or Mexico. In fact, taking into account a person’s home country or the country of their ancestors is generally a non-starter. (I say “generally” because national origin

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and race may be considered under a special-purpose credit program.)

The ECOA’s Regulation B allows a creditor to consider an applicant’s immigration status or status as a permanent resident, as well as any additional information that may be necessary to determine the creditor’s rights and remedies regarding repayment. The official interpretation of this provision makes clear that a creditor may legitimately consider a person’s ties to the community in assessing repayment risk. For instance, a long-time resident with permanent resident status can be considered more favorably than an applicant on a student visa that is about to expire. That certainly makes sense!

In the new joint statement, the agencies caution that “unnecessary or overbroad reliance on immigration 39

status … may run afoul of ECOA’s antidiscrimination provisions.” They warn that “Regulation B does not … provide a safe harbor for all consideration of immigration status.”

What’s changed? Well, in Reg. B, the ability to consider immigration status is expressed broadly. In the joint statement, the agencies say that considering immigration status is permitted only when necessary to determine a creditor’s rights and remedies regarding repayment. If knowing immigration status is not necessary, the creditor risks violating the ECOA and Reg. B. That seems reasonably okay, doesn’t it? One would think that a borrower who is required to leave the country or is subject to deportation during the loan term would be an inherent risk. Although some auto creditors, including some buy-here, pay-here dealers, have found a profitable niche in extending credit to immigrants, including undocumented immigrants, most commonly restrict credit extension to citizens, permanent residents, and foreign nationals with a remaining visa term that exceeds the term of the credit extension.

That practice seemed well within the rules of Reg. B. After all, a borrower compelled to leave the country before the financing is repaid creates a greater risk of loss. Collecting from a person not in the country is hard enough, but if the borrower takes the collateral when he

40

or she leaves, the risk of loss is even greater. These factors seem central to assessing the creditor’s rights and remedies regarding repayment.

But the joint statement casts doubt on whether the agencies agree. The statement says that a “blanket policy of refusing to consider applications from certain groups of noncitizens regardless of the credit qualifications of individual [group members] may risk violating ECOA and Regulation B.” The agencies suggest that having a good credit score will “resolve concerns about the creditor’s rights and remedies regarding repayment.” But does it?

A credit score is not designed to predict the risk of nonpayment by a person forced to leave the country well before the financing is scheduled to be repaid.

While some borrowers in this situation may prepay the debt before they leave or continue making monthly payments even though they are no longer in the country, a creditor may understandably be reluctant to count on that. In fact, collecting a debt from a person no longer in the country is notoriously difficult. And if the car is also absent, the creditor’s most reliable security for the debt is also gone.

Yet, the joint statement indicates that it may not be enough to consider the effect of immigration status on a creditor’s rights and remedies. Instead, the creditor must weigh an applicant’s individual circumstances in

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assessing whether the risk posed by certain (short-term) immigration statuses is mitigated by other strengths.

Although that duty might be reasonable in theory, I suspect few creditors have access to such data. What circumstances distinguish immigrants with temporary visas, or no visas at all, who repay and those who do not?

Perhaps some cultures have a stronger sense of honor or financial responsibility that motivates them to repay debts they might be able easily to walk away from, but, even if this were true, it seems far too close to considering national origin to be a good idea.

Further, if creditors traditionally have not extended auto credit to people who lack a legal right to remain in the country long enough to complete a repayment term, little data on what circumstances might distinguish low risks from higher risks would exist.

The agencies also warn about criteria apart from immigration status that present compliance risks. For instance, services exist that tell a creditor when a consumer’s Social Security Number was issued. Today, parents usually obtain SSNs for their children when they are quite young. A recently issued SSN for an adult may indicate that the person arrived in the U.S. more recently. It would be a mistake for a creditor to assume that a newly issued SSN indicated that the person was an immigrant with temporary status.

Some creditors worry that an adult with a newly issued SSN could be engaged in fraud. Indeed, some scams have encouraged consumers with poor credit histories to obtain new SSNs to hide their past credit problems. There may be valid reasons to inquire further of an applicant with a recently issued SSN. The agencies caution creditors against adopting “overbroad” policies that could implicate a protected characteristic like national origin or race.

Creditors that consider immigration status and deny credit to those who lack the right to remain in the country long enough to repay a loan no doubt believe they are doing so based on their impaired ability to collect the debt if the consumer must leave the country before the obligation is paid. In contrast, the CFPB’s blog post on the day the joint statement was issued called denying credit to consumers based on immigration status instead of their ability to repay a “problematic practice” and encouraged immigrant consumers to submit complaints.

Accurately predicting credit risk has always been challenging, and the joint statement has made a tough task even harder.

Jean Noonan is a partner in the Washington, D.C., office of Hudson Cook, LLP. Jean can be reached at 202.327.9700 or by email at jnoonan@hudco.com.

Please Welcome Our Newest TIADA Members DEALER MEMBERS Car Experts Group LLC . . . . . . . . Mauro Gonzalez 1500 Crescent Dr, Suite 400, Carrollton, TX 75006

Cars by Woody. . . . . . . . . . . . . . . Johanna Rodriguez

2735 Blanco Rd, San Antonio, TX 78212

Easy Auto Financial LLC . . . . . . . . . . Arthur Torres 5826 S, 23rd St, McAllen, TX 78503

El Trebol Auto Sales LLC . . . . . . . . Paola Guzman 9525 North FM 493, Donna, TX 78537

Euromex Cars LLC . . . . . . . . . . . . . . Brygida Ugarte P.O. BOX 543054, Grand Prairie, TX 75054

Grand Lux Motor Cars . . . . . . . . . . . . Daniel Velani 2510 Southwell Road, 110, Dallas, TX 75229

My Car Store . . . . . . . . . . . . . . . . . . .Edward Pedroza 8900 Camp Bowie Blvd, Fort Worth, TX 76116

OTS Truck Centers. . . . . . . . . . . . . . . . Kyle Blackett 115 Illinois St, Rhome, TX 76087

Texas Auto Corporation . . . . . . Amin Mehdizadeh 9332 Alberene Dr, Houston, TX 77074 The Motorplex . . . . . . . . . . . . . . . . . . . Joseph Garcia

1230 SW Military Dr, San Antonio, TX 78221

TX Work Trucks . . . . . . . . . . . . . . . . . Karen Boisture 5101 E University Drive # 300, Denton, TX 76208

Worldwide Approval Station . . . . . .Gary Jackson 965 First St. SW, Paris, TX 75460

ASSOCIATE MEMBERS B. Riley Advisory Services . . . . . . . Scott Boehler

L and M Car Sales LLC . . . . . . . . . . Manuel Ponce 2905 South Garland Ave, Garland, TX 75041

19800 MacArthur Blvd., Suite 820, Irvine, CA 92612

Menchaca Auto Sales . . . . . . . Manuel Menchaca 1230 W Harrison, Harlingen, TX 78550

EpiCar . . . . . . . . . . . . . . . . . . . . . . . . . . . Jurgis Plikaitis 2035 NE 151st St, North Miami Beach, FL 33162

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Answers to the 2023 Dealer Proficiency Quiz (Questions found on pg. 25)

1. a. 1993. (February, 2023; A Look Back at Legislative Successes)

resource guide The TIADA Website: www.txiada.org Members can log in with their username/ password and access our Dealer Member Directory, Legislative Action Center, Compliance Consultation Service and much more. Register for all upcoming TIADA events online through the Calendar of Events, access our online membership application, find contact information for all our Local Chapters, and access many additional resources through our Knowledge Base.

License Renewal Certificate TexasDealerEducation.com

Texas Department of Motor Vehicles 888.368.4689 www.txdmv.gov

Office of Consumer Credit Commissioner 800.538.1579 occc.texas.gov

Texas Comptroller 800.252.1382 comptroller.texas.gov

NIADA

2. a. There is no minimum amount of loss that triggers the liability carrier’s obligation to include a recorded lien holder on the settlement check. (September, 2023; New Law Adds to Lien-Holder Protections in Liability Insurance Claims) 3. False. There is no mandatory grace period on contract payments in Texas law. (May, 2023; Is There a Mandatory Grace Period?)

4. True. Unlike a claim on a dealer’s bond, which requires a court judgement, a claim on a bonded title bond does not require a judgement. However, should the surety company deny the claim, a lawsuit may be necessary to pursue the claim. (April, 2023; Protecting a Lien Holder’s Rights When a Bonded Title Is Applied For) 5. e. All of the above. Notice of bankruptcy filing can take any form.

Courts will hold creditors to the terms of the automatic bankruptcy stay if they have gotten any type of notice. (November, 2023; Bankruptcy Basics for Car Creditors: Separating Fact from Fiction) 6. False. The “60-per-cent” rule requires a creditor to use the private sale procedure after repossession, using the so-called “10-day letter.”

(March, 2023; Applying the 60-Percent Rule to Strict Foreclosure) 7. c. Any finance transaction, regardless of the model year of the vehicle, can be calculated at 18 per cent APR. (December, 2023; Maximum Finance Charge Rates for 2024) 8. False. The Supreme Court held in the Fulton case that the mere refusal to immediately return collateral repossessed prior to the bankruptcy filing was not a violation of the bankruptcy stay.

However, the bankruptcy court can order the return of the vehicle and it remains subject to the bankruptcy stay and thus under the control of the court. (November, 2023; Bankruptcy Basis for Car Creditors: Separating Fact from Fiction) 9. b. House Bill 4142 requires the payment of attorney fees to a lien holder who prevails in a claim against a liability insurance company that failed to include a perfected lien holder as payee on a settlement check. (September, 2023; New Law Adds to Lien-Holder Protection in Liability Insurance Claims)

800.682.3837 www.niada.com

10. d. APR is the abbreviation for Annual Percentage Rate, a federally mandated disclosure that advises a consumer of the actual cost of credit. (December, 2023; Maximum Finance Charge Rates for 2024)

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2. a. (March 14, 2023: Guidance on Electronic Signatures: Here’s What You Need to Know)

American Recovery Association

3. d. (May 31, 2023: Texas Legislature Eliminates Temporary Tags)

FORMS Burrell Printing

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1. c. (January 1, 2023: What to Do When a Customer Defaults on Their First Payment)

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4. b. (June 13, 2023: The Deadline Has Passed: Safeguarding Your Dealership’s Future) 5. c. (August 1, 2023: New Registration Fee for Electric Vehicles Begins September 1, 2023) 43

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The Texas License Renewal Education Course provides the ins and outs of being a dealer in Texas in a self-guided online course, available 24/7. This is the same course required by the TxDMV to renew a GDN license, so it covers all the important subjects including: • Staying compliant with TxDMV regarding premises requirements • Acquiring Inventory • Temp Tags and Metal Dealer Plates • Buyer’s Guide • Deal Jacket Documents

• Transferring Titles • Record Keeping • Special Inventory Tax (VIT) • Federal Requirements • The OCCC • Enforcement and Investigation • Advertising Rules

Register your staff today!

Just $99 This course is perfect for managers that need an overall refresher or for the new employee that needs to be brought up to speed on all aspects of this industry in a fast, convenient and reliable way.

In addition to TxDMV’s approval, this course has been reviewed by the Tax-Assessor Collectors Association of Texas for accuracy so you’ll never have your title transfer paperwork rejected again.

To register visit TexasDealerEducation .com and select the Texas License Renewal Education Course.

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behind the wheel

by John Frullo

TIADA Kicks Off the Metal Tag Roadshow Tour!

Y

our association, guided by President Eddie Hale, has hit Texas’s highways and byways to talk about everything in the conversion from paper to metal plates. If you were able to attend one of the timely and informative presentations, you undoubtedly learned a lot about this epic transformation from the most knowledgeable sources in the Great State of Texas.

So far, there have been events hosted in Corpus Christi, the Rio Grande Valley, Abilene, and Arlington to capacity crowds covering the aspects and requirements behind this monumental task. If you did not attend one of these, don’t feel left out. We are working on a tour schedule for the rest of the state next year!

Gathered as presenters were the most knowledgeable experts in the state. Under the direction of Daniel Avitia, Executive Director of the Texas Department of Motor Vehicles, a group of the top TxDMV officials presented and answered hours of questions across the various presentations. This distinguished group included Deputy Executive Director Roland Luna, Sr., Director of Enforcement Corrie Thompson, Director of Government & Strategic Communications Keith Yawn, Director of Motor Vehicles Monique Johnston, Director of Vehicle Titles & Registration Annette Quintero, Division Deputy Director of Vehicle Titles & Registration Clint Thompson, and Deputy Director of Enforcement Division Brian Ge. In each town hall city, we invited their respective Tax Assessor-Collectors to provide their take on how they will be integral in this transformation.

TIADA EXECUTIVE DIRECTOR

At the Arlington event, Arturo Ballesteros, Director of Government Affairs for NTTA, touched upon the implications for the toll authorities; Kelvin Bass, Legislative Aide of Senator West’s office, provided a legislative perspective. It is inspiring to see the level of interest and support of the various stakeholders working closely together, including many of our fellow dealers.

One key takeaway from these well-attended town halls is that the legislative directive will be complicated with many moving parts. However, with this advanced planning, input from TIADA and our members, and the deferred timeframe TIADA worked to be added to this legislation, this group can reach the intended goal in a true partnership fashion.

What can you do to ensure you are ready? The first and one of the most important items is to become proficient in using webDEALER as soon as possible, as you will be required to use it in July 2025 to register your automobiles. Many parts of this conversion are being reviewed, addressed in a variety of ways, and are being developed as the clock ticks. To best prepare your dealership, read your monthly Texas Dealer magazine, email blasts, attend town halls, and make plans to attend the annual TIADA conference at the JW Marriott Hill County Resort & Spa in San Antonio July 21st -23rd, 2024, where we will also cover this important topic in depth. This will be a challenging task, but with all parties continuing to work together, we will make it as streamlined as possible.

...the legislative directive will be complicated with many moving parts.

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