Texas Dealers Win Big in 2025 Legislative Session

Texas Dealers Win Big in 2025 Legislative Session

The 2025 Texas legislative session has officially concluded, and the Texas Independent Automobile Dealers Association (TIADA) was on the ground every step of the way, advocating on behalf of you and your dealership. Thanks to the dedicated efforts of TIADA and the support of numerous industry stakeholders, Texas dealers are now in a stronger position following the passage of two key bills.

SB 1902 serves as a much-needed correction to the unintended consequences of HB 718 (2023), which required licensed dealers to issue metal license plates at the time of sale to combat fraudulent paper tags. While that law aimed to address a real problem, it created significant logistical and security challenges for dealerships—requiring plates to be removed from trade-ins, stored on-site, and tied to the vehicle instead of the customer.

SB 1902 addresses those concerns by allowing the license plate to remain with the customer, not the vehicle. This change simplifies dealership processes, reduces security risks, and eases the operational burden. It’s a clear example of how effective legislative advocacy, driven by dealer voices, leads to meaningful change.

HB 4134 is another key victory, giving dealers and related finance companies more flexibility in how they accept electronic payments. The bill authorizes holders of retail installment contracts to charge a convenience fee when buyers choose to make payments electronically—such as by credit card, debit card, or electronic funds transfer—without having to route those payments through a third-party processor.

The convenience fee must be reasonably related to the actual cost of processing the electronic payment and is capped at the lesser of $10 or 5% of the payment amount. Dealers must offer at least one fee-free payment option, such as cash. Buyers must also be informed of the fee amount before completing an electronic transaction.

These legislative wins underscore the real value of membership in TIADA. When you are part of this association, your voice is amplified at the Capitol, your concerns are heard, and your business is represented with professionalism and strength.

 
How You Can Support Future Advocacy

Our ability to influence legislation that protects and empowers Texas dealers depends on the ongoing support of our members. One of the most impactful ways you can contribute is by donating to the TIADA Political Action Committee (PAC).

Your donation helps us support legislators who understand our industry and are committed to fair, practical regulations.

You can also strengthen our advocacy efforts by encouraging other independent dealers to join TIADA. Ask your friends and colleagues in the industry to become members—because the more united our voice, the stronger our influence.

Whether it’s staying engaged, responding to calls to action, making a PAC contribution, or helping grow our membership, your involvement makes a real difference.

To donate or learn more about TIADA’s advocacy work, visit TIADA Political Action Committee (PAC).