2017 Texas Legislative Session Discussion Thread

[ggies07]

Thought I would update this thread with new info....looks like we are headed in the right direction!

Tesla makes progress in Texas, GOP endorses direct car sales

About 90 percent of the more than 8,000 delegates supported the new proposal.

mod note: Moved this to new thread since this applies to 2017 Legislative session

 

[Boourns]

Wow this one is a doozy:

B.J. “Red” McCombs, a car dealer from San Antonio, said the current state ban on direct sale is “as sacred as Paul’s letter to the Corinthians.”

This, from the person after whom the biggest business school in the state is named. He might as well be saying "my wallet is as sacred as Paul’s letter to the Corinthians."

And of course the usual b.s:

“Texas legislators have gotten this right time and time again that current Texas franchise auto dealer laws ensure competition and protect consumers,” he said.

What amazes me is that this argument has any traction. I don't see how anyone who has bought a car from a franchise dealer could possibly say that this model protects consumers.

 

[jerry33]

What amazes me is that this argument has any traction. I don't see how anyone who has bought a car from a franchise dealer could possibly say that this model protects consumers.

Postulations accepted by politicians often don't even remotely match the observed data. The difference is how much money is behind a particular postulation. As far as I can tell, nothing else matters.

 

[Boourns]

Postulations accepted by politicians often don't even remotely match the observed data. The difference is how much money is behind a particular postulation. As far as I can tell, nothing else matters.

And your point is really the most important. Tesla is unwilling and probably unable to match the amount of money given to our elected officials by the dealer interest groups, who believe -- and god willing rightfully so -- that the Tesla business model threatens their financial well being. That being true, we will continue to have an uphill battle.

It just really irks me that the best cover they can muster for their blatant self interest is to feign consumer protection. But I am irked by Texas politicians quite often.

 

[TI Sailor]

Thought I would update this thread with new info....looks like we are headed in the right direction!

Tesla makes progress in Texas, GOP endorses direct car sales

Those 90% are probably all super delegates, ignoring the will of the people who clearly favor dealerships over free choice.

 

[Gentilly7]

I was really excited to hear this news also. Does anyone have any insight as to what the next steps to the process for approval will be and how soon it can happen? I hope they include elgibility for the Texas EV rebate also as it currently includes language for only Texas dealer purchases.

 

[Boourns]

I was really excited to hear this news also. Does anyone have any insight as to what the next steps to the process for approval will be and how soon it can happen? I hope they include elgibility for the Texas EV rebate also as it currently includes language for only Texas dealer purchases.

Well all that's happened is the Republican party of Texas has adopted the issue as a plank in the party platform. So the next step is for a House and Senate member to introduce legislation in their respective chambers once the legislative session begins next year, which will certainly happen. Then the bill will go to committee for approval. This is where the previous bills have died as it is the committee members who decide what bills to address. Then if all goes well and it makes it out of committee, the bill is voted on and sent to the other chamber for approval. Presuming some version of the bill is approved in both chambers, the bill will go to Gov. Abbot's desk. Last he spoke about the issue he was for the status quo, so he could veto it. If he signs it next session the law could go into effect Sept. 1, 2017. I wouldn't be surprised of it's pushed back to Jan 1, 2018 or even later as a concession to the dealer groups in order to make Model 3 deliveries as difficult as possible.

As far as a state tax credit for EVs like California or Colorado have, don't hold your breath. If you think the dealer lobby is powerful, you cannot fathom the power of the oil lobby.

 

[Gentilly7]

Well all that's happened is the Republican party of Texas has adopted the issue as a plank in the party platform. So the next step is for a House and Senate member to introduce legislation in their respective chambers once the legislative session begins next year, which will certainly happen. Then the bill will go to committee for approval. This is where the previous bills have died as it is the committee members who decide what bills to address. Then if all goes well and it makes it out of committee, the bill is voted on and sent to the other chamber for approval. Presuming some version of the bill is approved in both chambers, the bill will go to Gov. Abbot's desk. Last he spoke about the issue he was for the status quo, so he could veto it. If he signs it next session the law could go into effect Sept. 1, 2017. I wouldn't be surprised of it's pushed back to Jan 1, 2018 or even later as a concession to the dealer groups in order to make Model 3 deliveries as difficult as possible.

As far as a state tax credit for EVs like California or Colorado have, don't hold your breath. If you think the dealer lobby is powerful, you cannot fathom the power of the oil lobby.

Thanks for the detailed rundown. Fingers crossed. When does next years legislative session begin? Duly noted about the oil lobby, I will stop thinking about the incentive lol.

 

[wart]

Thanks for the detailed rundown. Fingers crossed. When does next years legislative session begin? Duly noted about the oil lobby, I will stop thinking about the incentive lol.

The 2017 session begins on January 10.

Quick reminder for non-Texans who might be following this: the Texas Legislature meets every 2 years, in odd-numbered years. It might be time to start thinking about moving this to a new thread for the 2017 session.

 

[Boourns]

It starts in January and runs for about 5 months. Hopefully I'm wrong and we finally get this done this year.

 

[bollar]

As far as a state tax credit for EVs like California or Colorado have, don't hold your breath. If you think the dealer lobby is powerful, you cannot fathom the power of the oil lobby.

Texas did offer a $2500 tax credit for alternative fuel vehicles, including EVs from Spring 2014 through August 2015. Teslas weren't eligible (as previously noted). Oil lobby or not, there are occasional benefits.

 

[Boourns]

Texas did offer a $2500 tax credit for alternative fuel vehicles, including EVs from Spring 2014 through August 2015. Teslas weren't eligible (as previously noted). Oil lobby or not, there are occasional benefits.

Now that you mention it do remember something about a credit. I thought it was only for propane/natural gas powered cars?

 

[Chris TX]

Sooooooo, why do we need a new thread? This one already exists and I've asked it to be stickied.

2017 Texas Legislative Session Discussion Thread

 

[purplewalt]

Not exactly the same thing, but it does pertain.

I am summarizing this from memory, so don't shoot me if I miss a detail or two.

This past Tuesday morning (June 14) on local NPR station (KERA), there was a local news report about the recent Texas State Republican Party Convention.
And in the middle of the typical booths there was a Red Model S, and a Tesla representative inviting people to come and sit in the car.
Tesla's goal is to get the Republican Party to amend their plank to allow Tesla to do more than just "show the car", appealing to their free-market sensitivities.
Tesla Motors has spent around $2.5M in Texas trying to get lobbyist to move this along with the State Senators and Representatives (mostly Republican).

Part of the balanced reporting had the Owner of local (NorthTexas) Mitsubishi Dealership and head of TADA, talking about entrepreneurship, and he is not wanting the current laws (from the 1950's) to be altered so that a manufacturer can sell direct to consumers.
He spoke about the number of jobs at the local level (dealerships) that would be impacted/affected if a manufacturer (Tesla) would be able to sell direct to consumers.
One thing the reporter noted was that almost EVERY district has at several car dealerships, so the legislators have a huge bit of folks at home who are vested in what does go on in Austin.

And the Texas State Democratic Party is having their convention this weekend.

Soonest anything can come up for action/review/vote by the Legislature will be Spring of 2017, and then 2019 after that.

Wheels of democracy sure turn slowly in Texas.

 

[ggies07]

I got a response back and wanted to share. I put in bold the part I think is BS....at least he got back to me.


Representative Matt Krause
Today 10:15 AM

Mr. Johnson,

Thank you for writing to me earlier this year about HB 3351. I greatly appreciate you sharing your thoughts about allowing Tesla to operate in Texas. Thank you for updating me on this important issue and I have valued reading your thoughts on this matter.

In your email, you have requested that the Texas Legislature pass a bill that would permit Tesla to conduct business within the state. As a consumer, I can understand how troublesome it is for people who wish to learn more about these cars or to obtain one for themselves, and I can also understand how frustrating it can be when making a purchase at a car dealership. Unfortunately, passing this bill may affect these dealerships in a negative way, which may in turn affect the economy. However, as you have said before, Tesla is gaining popularity in the US, and Texas is a pro-business state.

Please know that I appreciate you reminding me that the Texas Legislature will be looking at this bill again soon. Moreover, I will certainly consider allowing Tesla to operate in our state in the upcoming sessions. Please let my office and me know if we can ever assist you with anything else, as well. We are happy to assist you however we can. Thank you for the honor to serve as your state representative, Tyler.

Sincerely,

Matt Krause

State Representative, House District 93

 

[Boourns]

^ That is infuriating.

 

[SpiceWare]

Should ask him if he's going to put forth a bill to shut down the Apple stores; after all, they're obviously affecting other stores in a negative fashion.

 

[Rhyder]

They should shut down all the Wal-Marts in Texas too. No telling how many mom and pop stores have been driven out of business by the evil corporate giant. Surely, that hurts the Texas economy.

Kidding aside, I'm a 20 year automobile dealership employee who believes in free enterprise and competition. I am amazed at the amount of sway that dealers have over our local and state politics. I'm also amazed at the argument that franchise dealership agreements "protect" the consumer. I have heard dealers and politicians (including Governors Perry and Abbott) espouse the virtues of the current system for the consumer. If they really believed that manufacturer direct sales would hurt the economy or average Texans, they should open the system up to all and let consumers speak with our wallets. Then, we'll find out which system is better.

I think I'll put my money into the better mousetrap...

 

[SW2Fiddler]

He spoke about the number of jobs at the local level (dealerships) that would be impacted/affected if a manufacturer (Tesla) would be able to sell direct to consumers.

Curious, what was that number, the # of jobs at local dealerships that would be impacted if Tesla were able to sell here? And a fair follow-up question would be Why? Other than that people might want the product more than what is in inventory at dealers?

Unfortunately, passing this bill may affect these dealerships in a negative way, which may in turn affect the economy.

"How, Matt, how?? Walk us 'mere voters' through the scenario where that happens. If a sale at a dealership is lost to a Tesla Store in Texas, how does that net negative to our economy??"

 

[jerry33]

"How, Matt, how?? Walk us 'mere voters' through the scenario where that happens. If a sale at a dealership is lost to a Tesla Store in Texas, how does that net negative to our economy??"

Simple. If the dealership sees that their monopoly on car sales isn't being enforced by the Legislators, they are likely to decrease or stop campaign contributions. Remember, when a Legislator refers to "our economy" they are using the royal "our".