On The Cover: Independent Dealers Play a Major Role in the Legislative Process

by Stephen Pallas

TIADA Director of Marketing and Communications

On January 10, the Texas Legislature will convene in Austin to approve the state budget, discuss various policy issues, and pass laws that will govern In most cases, the association is highly aware of bills that may have a negative impact on the industry, and they can usually work with stakeholders to find some the state for years to come. Since 1944, TIADA has been compromise that ends up being mutually beneficial. participating in this process by actively building relation- Martin remembers a bill that was introduced in 2009 ships and serving as the sole voice for independent auto- that would increase the independent dealer bond to mobile dealers at the Capitol. TIADA Executive Director $250,000. The TIADA team immediately went to the Jeff Martin explains that author of the bill to see if 2023 will be no different. they could better under“It’s important that the as- stand what her concern sociation have a consistent "Legislators want to know was and what she was presence year-round and trying to accomplish with especially throughout the session,” he said. “When the dealers in their district. the bill. It turns out, the legislator was concerned an issue pops up, we must be available to make sure They want to know about curbstoning in her district. Once she underwe can explain how that issue will affect our indus- how a specific piece of stood the negative impact such a high bond would try. It is the number one have on legitimate dealreason dealers belong to legislation will affect their ers, she worked with the the association. It’s what association and, two years the members before us did and what we must do constituents. We talk about later, signed on to a bill that gave law enforcefor the current and next generation of used car how important that is ment broad authority to remove vehicles that were dealers.” During the ses- all year, but now that we being sold by unlicensed individuals. This is just sion, which lasts for six months, over 9,000 bills are in session, the meeting one example of negative legislation that could easwill be filed. TIADA has a ily slip through and have team, anchored by Mike place for the next six unintended consequences Dunagan, that reviews if TIADA was not keeping every bill filed. Once it is determined that a bill months is at the Capitol.... a keen eye on the process. Stopping bad legislamay have some impact on the industry, it is added Come to the Day at tion is not the only way TIADA participates in the to the TIADA watch list and tracked throughout the Capitol, and we will legislative process. The association has chamthe legislative process. “We are simply monitor- put you in front of the pioned many pieces of legislation and worked ing most bills on our with various legislators watch list, and we take a right people." to help introduce posineutral position unless tive change for consumers the bill changes due to an ~Jeff Martin, and the industry. But that amendment,” said Martin. “However, if we see a bill TIADA Executive Director change does not happen overnight. TIADA Past we support or oppose, President Robert Beck, we notify the author and who owns Stop N’ Drive then state our position on the Legislative Action Center.” Motors in San Antonio, recalls working on the namedTIADA’s Legislative Action Center can be found on driver-only legislation for four years. “Everyone in the the TIADA website, and members can follow every bill industry knew these were junk policies,” said Beck. TIADA is tracking under “key legislation.” That section “They were bad for consumers and lienholders, but it will be updated on January 10 as soon as the session gets takes time to educate people. We had to be present and underway. For TIADA members, it is the best way to persistent every time there was a chance to tell our side stay abreast of legislation that affects the industry. of the story.”

Beck should know since he testified numerous times at the Capitol between 2015 to 2019 before State Representative Ed Thompson authored a piece of legislation that finally passed and eliminated the practice of named-driver-only insurance policies in Texas.

Over the years, independent dealers have been the beneficiary of some very important pieces of legislation TIADA has championed, including:

Deferred Sales Tax

Dealers no longer must require insurance prior to transferring a vehicle

TxDMV Board Position for an Independent Dealer

Doc fee increase

Mechanic’s lien reform

Deferred sales tax for Related Finance Companies

Eliminating named-driver-only insurance policies

Third-party insurance checks must include the lienholder

There are great opportunities for dealer members to help or become more involved throughout the year. Martin is more than happy to discuss how dealers can get involved in the process, and he emphasizes that the TIADA Day at the Capitol on February 7 is a great place to start. “We must build relationships in the district,” said Martin. “That is important for us and for the legislators. Legislators want to know the dealers in their district. They want to know how a specific piece of legislation will affect their constituents. We talk about how important that is all year, but now that we are in session, the meeting place for the next six months is at the Capitol. If we haven’t yet made those contacts in the district, let’s do it in Austin. Come to the Day at the Capitol, and we will put you in front of the right people.”

The TIADA Day at the Capitol is free and open to all TIADA dealer members. It’s an opportunity for dealers to discuss legislative issues with legislators and their staff. Dealers are grouped together primarily by geography, and they attend prearranged meetings with their legislators. The TIADA staff schedules all the legislative meetings, provides talking points for each group, and assigns a group leader to help navigate the Capitol and speak on behalf of the group.

TIADA Past President Mark Jones from MCMC in Burleson has attended the event several times and can speak to any reservations a first-time attendee might have. “The TIADA staff makes it very easy,” said Jones. “They provide training and maps, and they are constantly checking in with you throughout the day to make sure you are in the right place and feel comfortable.” During Jones’ first Day at the Capitol, he was put in a group with a dealer who had several sessions under his belt. Jones is now a group leader and regularly takes new attendees to meet with their legislators.

TIADA will focus on two issues at this year’s Day at the Capitol. First, the association supports increasing the timeframe for a safety inspection acquired by a dealer from 180 days to 12 months. This change will save consumers and dealers from time wasted reinspecting vehicles with little, if any, correlating benefit to dealers, consumers, or the public. It is expensive and time-consuming, especially in rural areas where inspection stations are not as readily available. All that expense is passed along to the consumer in one way or another.

Secondly, dealers who attend will be educating legislators on an issue that has come up during the last two sessions and is expected to be around again. As previously introduced, the bill would allow crushers, dismantlers, and recyclers to purchase a vehicle without a

title if the vehicle was 10 years old or older and had not been subject to a lien in the last four years. TIADA has actively opposed the bill and has been able to stop it in the last two sessions.

TIADA expects around 70 dealers to attend this year’s Day at the Capitol. It’s free for dealer members to attend, but they must register for the event. Registration can be found on the TIADA website. TIADA President Ryan Winkelmann owns and operates BJ’s Autohaus in Houston. He expects this to be the largest attendance ever. “Dealers know how important this day is for our industry,” said Winkelmann. “When we have a big showing at an event like this, it speaks volumes, and people really start to pay attention.”