Pub. 60 2019-2020 Issue 5

15 FALL 2020 begins. And while it appeared at the beginning of this year that the Repub- licans would maintain their majority in the Texas House, recent polling sug- gests that Democrats could gain the nine seats they need to take control of the House Chamber, something they haven’t had since 2002. Adding to this disruption is another House Speaker’s race to follow the election, and this will likely cause additional organizational delays for the session. “I think if you told any of us at the beginning of the year what we would be facing this year and potentially next year in our business, the economy, and government, no one would have believed you.” For now, Bryan sug- gests a steady course for the dealers and their agenda. “We are going to prepare for a normal session, but we are not necessarily expecting one. We will be prepared and flexible enough to adapt to any changing circumstances on the ground.” With many businesses and individu- als still hampered by the pandemic and unemployment, the Texas budget has been dramatically affected. In the Texas Comptroller Glenn Hegar’s budget update released in mid-July, he projected a 9.5% decrease in revenues from his previous estimate, swinging the bottom line from a $3 billion sur- plus to a $4.5 billion deficit. Under the recent projections, Hegar has sales tax revenue, which accounts for 57% of revenues, holding even with last biennium and motor vehicle sales and rental taxes running slightly be- hind. The big hits are to the oil and gas production taxes andhotel occupancy taxes.With a projected bienniumending balance of $8.8 billion in the Economic Stabilization Fund (Rainy Day Fund), Hegar still anticipates having enough flexibility to manage through the cur- rent budget cycle. Comptroller Hegar will provide an update for lawmakers in January 2021 for both 2020-2021 and 2022-2023. The budget is the only must-pass bill for the Legislature each session. And looking at a potentially large deficit, revenue considerations will likely be on the table. Last session, Members of the Legislature seriously contemplated an increase in the state sales tax rate to fund future property tax relief. There was also an effort to remove sales tax exemptions, and some Members have already headed down that road again. On the transportation funding front, there will likely be renewed interest in finding additional revenues to fund Texas road building, including electric vehicle fees to approximate the num- ber of gas tax dollars other vehicles provide. “I think a lot of things are on the table now that were probably not earlier in the year, and we know where the risks are as businesses and dealers.” One should expect a good amount of legislative attention this upcoming session on COVID-19 related legis- lation. Legal liability protection for COVID 19 related claims remains a key question for the business commu- nity, particularly if the issue remains unresolved at the Federal level. The Legislature will also likely seek to permanently eliminate government requirements that have been suspended during the pandemic. And the ef- ficiency of government operations at all levels in response to the pandemic will be evaluated, providing opportuni- ties to improve processes throughout the government. Dealers should also expect that agencies, including the Department of Motor Vehicles, will have their own wish list of legislative items ready. As for dealer specif ic issues, Case indicates there are three main buckets of interest to the committee. One, he expects manufacturer ownership of dealerships to remain a hot issue, particularly with all the new manufac- turers coming to market. Second, there are some dealership priorities focused on ensuring that dealers are treated fairly under the franchise laws and not mistreated by their manufacturers and other related entities. And third, we have identified some other items that give us opportunities to support and perhaps champion to try and get them over the finish line. Whether on offense or defense, there are plenty of issues out there, but it remains to be seen what the real bandwidth of the 87th Legislature will be come January. “Despite the uncertainty, I consider it a great privilege to lead the commit- tee during this challenging time, and I am very thankful for the team we have at TADA to guide us through the session. We have a great commit- tee appointed by Nancy Harper, and I look forward to working with them and 2021 TADA Chair April Ancira next year at the Capitol.”  “Despite the uncertainty, I consider it a great privilege to lead the committee during this challenging time, and I am very thankful for the team we have at TADA to guide us through the session. ”