The credit card surcharge bill, HB 3615, would have codified current case law by repealing an unconstitutional statutory provision that said merchants could not pass through the surcharge that credit card companies charge them to the credit card user. In 2018, a federal district court held that this statute violated the First Amendment, and since then some, Texas merchants have been passing through the surcharge to consumers despite the previously mentioned prohibition. Opposition to the legislation came from American Express as the bill passed the Texas House. Upon referral to the Senate, a broad coalition of Texas businesses coordinated efforts to support the legislation. Opposition increased too with the Texas Bankers Association joining American Express in their effort to ensure these charges remained hidden from Texas consumers. The opposition used language gymnastics and halftruths to convince several Senate Republicans that the bill would essentially create a “new fee,” and in the end, these senators chose to believe the opposition over their local businesses and killed the bill. Not only did the bill NOT create a new fee, but it also had important requirements for the merchant to disclose prior to the purchase to ensure that consumers would be aware of the pass-through and be able to make an informed buying decision. I will also mention again that the current law is unconstitutional. A win for the major national credit card companies. At the end of the day, despite strong Republican majorities in both chambers for more than 20 years, there has been a shift in a once reliable Texas Legislature that worked with their local businesses to create a positive business environment in Texas — one that had appropriate regulation, but also one that provided the opportunity for entrepreneurial achievements and protected consumers. The smoke screen of national special interests this past session lobbying our state leaders to favor national interests versus local businesses is not acceptable. Stated differently, Texas auto dealer and consumer legislation should only be measured by one standard, “Is it good for Texas?” Driving TADA’s Legislative Agenda Forward I hope you will call our team to learn more about how specific members of the Texas Legislature truly stood on our issues, including their choices between big, national companies versus Texas businesses and consumers. Members need to be reminded that the Texas miracle usually begins and ends in their local communities. This challenge provides us with an opportunity, but it is not one that any one individual can overcome. We will continue to build our Texas business coalition to work together for Texas businesses and Texans and against major national companies’ special interests. We will have an aggressive interim plan and will be well-prepared for the next session. Finally, my phone is on; my door is open; and I’m willing to travel and meet with any dealer across our great state as TADA continues to work on the state and federal fronts to promote Texas franchised dealers and protect your customers.
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