Texas 2023 88th Regular

Texas House Bill HB718 Senate Amendments Printing / Analysis

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                    H.B. No. 718




 AN ACT
 relating to the issuance of certain tags, permits, and license
 plates authorizing the movement of vehicles and the transfer and
 renewal of certain license plates.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  The heading to Section 152.027, Tax Code, is
 amended to read as follows:
 Sec. 152.027.  TAX ON [METAL] DEALER PLATES.
 SECTION 2.  Section 152.027(a), Tax Code, is amended to read
 as follows:
 (a)  A use tax is imposed on each person to whom is issued a
 [metal] dealer's plate under Section 503.061 or 503.0615,
 [authorized by Chapter 503,] Transportation Code.
 SECTION 3.  Section 152.042, Tax Code, is amended to read as
 follows:
 Sec. 152.042.  COLLECTION OF TAX ON DEALER'S LICENSE [METAL
 DEALER] PLATES.  A person required to pay the tax imposed by Section
 152.027 shall pay the tax to the Texas Department of Motor Vehicles,
 and the department may not issue the [metal] dealer's license
 plates until the tax is paid.
 SECTION 4.  Section 501.022(d), Transportation Code, is
 amended to read as follows:
 (d)  Subsection (c) does not apply to a motor vehicle
 operated on a public highway in this state with a [metal] dealer's
 license plate [or a dealer's or buyer's temporary tag] attached to
 the vehicle as provided by Chapter 503.
 SECTION 5.  Sections 501.0236(b) and (d), Transportation
 Code, are amended to read as follows:
 (b)  A purchaser to whom this section applies may apply for[:
 [(1)]  a title in the manner prescribed by the
 department by rule[; and
 [(2)  on expiration of the buyer's tag issued to the
 purchaser under Section 503.063, a 30-day permit under Section
 502.095].
 (d)  The department shall waive the payment of fees for[:
 [(1)]  a title issued to a purchaser described by this
 section[,] if the purchaser can show that fees for a title were paid
 to the dealer[; and
 [(2)  one 30-day permit issued to a purchaser described
 by this section].
 SECTION 6.  Section 502.095, Transportation Code, is amended
 to read as follows:
 Sec. 502.095.  ONE-TRIP OR 30-DAY TRIP LICENSE PLATES
 [PERMITS].  (a)  The department may issue a temporary metal license
 plate [permit] in lieu of registration for a vehicle subject to
 registration in this state that  is not authorized to travel on a
 public highway because of the lack of registration in this state or
 the lack of reciprocity with the state or country in which the
 vehicle is registered.
 (b)  A license plate [permit] issued under this section is
 valid for:
 (1)  one trip, as provided by Subsection (c); or
 (2)  30 days, as provided by Subsection (d).
 (c)  A one-trip license plate [permit] is valid for one trip
 between the points of origin and destination and those intermediate
 points specified in the application and registration receipt.
 Unless the vehicle is a bus operating under charter that is not
 covered by a reciprocity agreement with the state or country in
 which the bus is registered, a one-trip license plate [permit] is
 for the transit of the vehicle only, and the vehicle may not be used
 for the transportation of any passenger or property.  A one-trip
 license plate [permit] may not be valid for longer than 15 days from
 the effective date of registration.
 (d)  A 30-day license plate [permit] may be issued only to a
 passenger vehicle, a private bus, a trailer or semitrailer with a
 gross weight of not more than 10,000 pounds, a light truck, or a
 light commercial vehicle with a gross vehicle weight of more than
 10,000 pounds that will operate unladen.  A person may request from
 the department an extension of the period a [obtain multiple]
 30-day license plate is valid [permits].  The department may issue a
 single registration receipt to apply to all of the periods for which
 the vehicle is registered.
 (e)  A person may obtain a license plate [permit] under this
 section by:
 (1)  applying as provided by the department to:
 (A)  the county assessor-collector of the county
 in which the vehicle will first be operated on a public highway; or
 (B)  the department in Austin or at one of the
 department's vehicle title and registration regional offices;
 (2)  paying a fee, in the manner prescribed by the
 department including a registration service charge for a credit
 card payment or escrow account of:
 (A)  $5 for a one-trip license plate [permit]; or
 (B)  $25 for each 30-day license plate [period];
 and
 (3)  furnishing evidence of financial responsibility
 for the vehicle in a form listed under Section 502.046(c).
 (f)  The department shall prepare the design and
 specifications of a license plate issued under this section.  [A
 registration receipt shall be carried in the vehicle at all times
 during the period in which it is valid.]  The license plate
 [temporary tag] must contain all pertinent information required by
 this section and must be displayed as prescribed by department
 rule. [in the rear window of the vehicle so that the tag is clearly
 visible and legible when viewed from the rear of the vehicle.  If
 the vehicle does not have a rear window, the temporary tag must be
 attached on or carried in the vehicle to allow ready inspection.]
 The registration receipt must be carried in the vehicle at all times
 during the period in which it is valid.
 (g)  The department may refuse and may instruct a county
 assessor-collector to refuse to issue a license plate [temporary
 registration] for any vehicle if, in the department's opinion, the
 vehicle or the owner of the vehicle has been involved in operations
 that constitute an abuse of the privilege granted by this
 section.  A license plate [registration] issued after notice to a
 county assessor-collector under this subsection is void.
 (h)  A vehicle operated with a license plate under this
 section is exempt from the inspection requirements of Chapter 548.
 SECTION 7.  Section 501.147, Transportation Code, is amended
 by amending Subsection (a) and adding Subsection (a-1) to read as
 follows:
 (a)  On receipt of a written notice of transfer from the
 seller of a motor vehicle or a dealer who holds a general
 distinguishing number issued under Chapter 503, the department
 shall indicate the transfer on the motor vehicle records maintained
 by the department. As an alternative to a written notice of
 transfer, the department shall establish procedures that permit the
 seller of a motor vehicle or a dealer who holds a general
 distinguishing number issued under Chapter 503 to electronically
 submit a notice of transfer to the department through the
 department's Internet website.  A notice of transfer provided
 through the department's Internet website is not required to bear
 the signature of the seller or include the date of signing.
 (a-1)  On the sale or transfer of a motor vehicle to a dealer
 who holds a general distinguishing number issued under Chapter 503,
 the dealer shall submit the notice of transfer under Subsection
 (a).
 SECTION 8.  Section 502.410(b), Transportation Code, is
 amended to read as follows:
 (b)  Subsection (a) does not apply to a statement or
 application filed or given under Section 502.060, [502.092,]
 502.093, 502.094, 502.095, 504.201, 504.202(b-1), 504.508, or
 504.515.
 SECTION 9.  Section 503.008(a), Transportation Code, is
 amended to read as follows:
 (a)  The fee for:
 (1)  a [metal] dealer's license plate issued under
 Section 503.061 is $20 a year; and
 (2)  a dealer's temporary license plate issued under
 Section 503.062 is $10.
 SECTION 10.  Sections 503.038(a) and (c), Transportation
 Code, are amended to read as follows:
 (a)  The department may cancel a dealer's general
 distinguishing number if the dealer:
 (1)  falsifies or forges a title document, including an
 affidavit making application for a certified copy of a title;
 (2)  files a false or forged tax document, including a
 sales tax affidavit;
 (3)  fails to take assignment of any basic evidence of
 ownership, including a certificate of title or manufacturer's
 certificate, for a vehicle the dealer acquires;
 (4)  fails to assign any basic evidence of ownership,
 including a certificate of title or manufacturer's certificate, for
 a vehicle the dealer sells;
 (5)  uses or permits the use of a [metal] dealer's
 license plate [or a dealer's temporary tag] on a vehicle that the
 dealer does not own or control or that is not in stock and offered
 for sale;
 (6)  makes a material misrepresentation in an
 application or other information filed with the department;
 (7)  fails to maintain the qualifications for a general
 distinguishing number;
 (8)  fails to provide to the department within 30 days
 after the date of demand by the department satisfactory and
 reasonable evidence that the person is regularly and actively
 engaged in business as a wholesale or retail dealer;
 (9)  has been licensed for at least 12 months and has
 not assigned at least five vehicles during the previous 12-month
 period;
 (10)  has failed to demonstrate compliance with
 Sections 23.12, 23.121, and 23.122, Tax Code;
 (11)  uses or allows the use of the dealer's general
 distinguishing number or the location for which the general
 distinguishing number is issued to avoid the requirements of this
 chapter; or
 (12)  [misuses or allows the misuse of a temporary tag
 authorized under this chapter;
 [(13)  refuses to show on a buyer's temporary tag the
 date of sale or other reasonable information required by the
 department; or
 [(14)]  otherwise violates this chapter or a rule
 adopted under this chapter.
 (c)  A person whose general distinguishing number is
 canceled under this chapter shall surrender to a representative of
 the department each license, license plate, [temporary tag,]
 sticker, and receipt issued under this chapter not later than the
 10th day after the date the general distinguishing number is
 canceled.  The department shall direct any peace officer or
 designated department employee to secure and return to the
 department any plate, [tag,] sticker, or receipt of a person who
 does not comply with this subsection.
 SECTION 11.  The heading to Subchapter C, Chapter 503,
 Transportation Code, is amended to read as follows:
 SUBCHAPTER C.  LICENSE PLATES [AND TAGS]
 SECTION 12.  Section 503.061(a), Transportation Code, is
 amended to read as follows:
 (a)  Instead of registering under Chapter 502 a vehicle that
 the dealer owns, operates, or permits to be operated on a public
 street or highway, the dealer may apply for, receive, and attach
 [metal] dealer's license plates to the vehicle if it is the type of
 vehicle:
 (1)  that the dealer sells; and
 (2)  for which the dealer has been issued a general
 distinguishing number.
 SECTION 13.  Sections 503.0618(b) and (c), Transportation
 Code, are amended to read as follows:
 (b)  Instead of registering under Chapter 502 a vehicle that
 a converter operates or permits to be operated on a public street or
 highway, the converter may apply for, receive, and attach [metal]
 converter's license plates to the vehicle if it is the type of
 vehicle that the converter is engaged in the business of assembling
 or modifying.
 (c)  The fee for a [metal] converter's license plate is $20 a
 year.
 SECTION 14.  The heading to Section 503.062, Transportation
 Code, is amended to read as follows:
 Sec. 503.062.  DEALER'S TEMPORARY LICENSE PLATE [TAGS].
 SECTION 15.  Section 503.062(a), Transportation Code, is
 amended to read as follows:
 (a)  A dealer may issue a temporary license plate [tag] for
 use on an unregistered vehicle by the dealer or the dealer's
 employees only to:
 (1)  demonstrate or cause to be demonstrated to a
 prospective buyer the vehicle for sale purposes only;
 (2)  convey or cause to be conveyed the vehicle:
 (A)  from one of the dealer's places of business
 in this state to another of the dealer's places of business in this
 state;
 (B)  from the dealer's place of business to a
 place the vehicle is to be repaired, reconditioned, or serviced;
 (C)  from the state line or a location in this
 state where the vehicle is unloaded to the dealer's place of
 business;
 (D)  from the dealer's place of business to a
 place of business of another dealer;
 (E)  from the point of purchase by the dealer to
 the dealer's place of business; or
 (F)  to road test the vehicle; or
 (3)  use the vehicle for or allow its use by a
 charitable organization.
 SECTION 16.  Section 503.063, Transportation Code, is
 amended to read as follows:
 Sec. 503.063.  DEALER-ISSUED LICENSE PLATES FOR BUYER
 [BUYER'S TEMPORARY TAGS].  (a)  Except as provided by this section,
 a dealer shall issue to a person who buys a vehicle:
 (1)  a license plate or set of license plates, if a
 license plate is required by law to be displayed on [one temporary
 buyer's tag for] the vehicle; and
 (2)  a completed and signed form required by, as
 applicable, Section 503.0631(c) or (d).
 (b)  A license plate or set of license plates issued under
 this section [Except as provided by this section, the buyer's tag]
 is valid for the operation of the vehicle while the registration
 application submitted by the dealer on behalf of the buyer under
 Section 501.0234 is pending [until the earlier of:
 [(1)  the date on which the vehicle is registered; or
 [(2)  the 60th day after the date of purchase].
 (c)  Except as otherwise provided by this subsection, at the
 time of issuance of a license plate or set of license plates under
 this section, the [The] dealer[:
 [(1)  must show in ink on the buyer's tag the actual date
 of sale and any other required information; and
 [(2)]  is responsible for displaying the license plate
 or set of license plates in compliance with department rules [tag].
 If a vehicle is a passenger car or light truck that is not equipped
 by the manufacturer with an exterior front feature to which a
 license plate may be fastened without drilling through the exterior
 of the vehicle, the dealer shall affix the rear license plate in
 compliance with department rules and provide the unmounted
 remaining license plate to the vehicle buyer.
 (d)  The dealer is responsible for the safekeeping and
 distribution of each license plate or set of license plates
 [buyer's tag] the dealer obtains from the department.  The dealer is
 liable for missing or misused license plates. The department may
 conduct a review of a dealer's compliance with this subsection.
 (e)  A dealer shall obtain license plates and sets of license
 plates from the [The] department in the manner provided by
 department rules [may not issue a buyer's tag or contract for the
 issuance of a buyer's tag but shall prescribe:
 [(1)  the specifications, color, and form of a buyer's
 tag; and
 [(2)  procedures for a dealer to:
 [(A)  generate a vehicle-specific number using
 the database developed under Section 503.0631 and assign it to each
 tag;
 [(B)  generate a vehicle-specific number using
 the database developed under Section 503.0631 for future use for
 when a dealer is unable to access the Internet at the time of sale;
 and
 [(C)  clearly display the vehicle-specific number
 on the tag].
 (f)  The department shall ensure that a dealer may obtain
 [generate] in advance a sufficient amount of license plates or sets
 of license plates [vehicle-specific numbers under Subsection
 (e)(2)(B)] in order to continue selling vehicles without an
 unreasonable disruption of business due to the unavailability of
 license plates [for a period of up to one week in which a dealer is
 unable to access the Internet due to an emergency].  The department
 shall establish an expedited procedure to allow a dealer [affected
 dealers] to obtain [apply for] additional license plates or sets of
 license plates [vehicle-specific numbers] so the dealer [they] may
 remain in business [during an emergency].
 (g)  For each license plate or set of license plates issued
 to a buyer under this section, the [buyer's temporary tag, a] dealer
 shall charge the buyer a registration fee [of not more than $5 as]
 prescribed by the department to be sent to the comptroller for
 deposit to the credit of the Texas Department of Motor Vehicles
 fund.
 (h)  A federal, state, or local governmental agency that is
 exempt under Section 503.024 from the requirement to obtain a
 dealer general distinguishing number may issue one license plate or
 set of license plates [temporary buyer's tag] in accordance with
 this section for a vehicle sold or otherwise disposed of by the
 governmental agency under Chapter 2175, Government Code, or other
 law that authorizes the governmental agency to sell or otherwise
 dispose of the vehicle.  A governmental agency that issues a license
 plate or set of license plates [temporary buyer's tag] under this
 subsection:
 (1)  is subject to the provisions of Section [Sections]
 503.0631 [and 503.067] applicable to a dealer; and
 (2)  is not required to charge the registration fee
 under Subsection (g).
 (i)  A vehicle may be issued and display a temporary license
 plate under this section [buyer's tag] without satisfying the
 inspection requirements of Chapter 548 if:
 (1)  the buyer of the vehicle is not a resident of this
 state; and
 (2)  the vehicle:
 (A)  at the time of purchase, is not located or
 required to be titled or registered in this state;
 (B)  will be titled and registered in accordance
 with the laws of the buyer's state of residence; and
 (C)  will be inspected in accordance with the laws
 of the buyer's state of residence, if the laws of that state require
 inspection.
 (i-1)  A temporary license plate issued to a vehicle
 described by Subsection (i) is valid for 60 days.
 (j)  A vehicle may be issued and display a license plate or
 set of license plates under this section [buyer's tag] without
 satisfying the inspection requirements of Chapter 548 if the
 vehicle is purchased at public auction in this state and is:
 (1)  an antique vehicle as defined by Section
 683.077(b); or
 (2)  a special interest vehicle as defined by Section
 683.077(b) that:
 (A)  is at least 12 years of age; and
 (B)  has been the subject of a retail sale.
 (k)  A dealer may not issue a license plate or set of license
 plates for a vehicle that is exempt from the payment of registration
 fees under Subchapter J, Chapter 502, until the department approves
 the application for registration of the vehicle.
 SECTION 17.  The heading to Section 503.0631, Transportation
 Code, is amended to read as follows:
 Sec. 503.0631.  [BUYER'S TEMPORARY TAG] DATABASE OF
 DEALER-ISSUED LICENSE PLATES.
 SECTION 18.  Section 503.0631, Transportation Code, is
 amended by amending Subsections (a), (b), (c), and (d) and adding
 Subsections (c-1), (d-1), and (d-2) to read as follows:
 (a)  The department shall develop, manage, and maintain a
 secure, real-time database of information on buyers [persons] to
 whom dealers issue a license plate or set of license plates under
 Section 503.063 or 503.065 [temporary buyer's tags are issued] that
 may be used by a law enforcement agency in the same manner that the
 agency uses vehicle registration information.
 (b)  The database must allow law enforcement agencies to use
 the information required to be included on a license plate [a
 vehicle-specific number assigned to and displayed on the tag as
 required by Section 503.063(e)(2)] to obtain information about the
 person to whom the license plate [tag] was issued.
 (c)  Except as provided by Subsection (d), before a license
 plate or set of license plates issued under Section 503.063 or
 503.065 [buyer's temporary tag] may be displayed on a vehicle, a
 dealer must, as prescribed by the department:
 (1)  enter into the database through the Internet
 information about the buyer of the vehicle for which the license
 plate or set of license plates [tag] was issued; [as prescribed by
 the department] and
 (2)  complete and sign a form prescribed by the
 department stating that the dealer entered the buyer's information
 into the database as required by Subdivision (1) [generate a
 vehicle-specific number for the tag as required by Section
 503.063(e)].
 (c-1)  Except as provided by Section 503.0633(f)
 [506.0632(f)], the department may not deny access to the database
 to any dealer who holds a general distinguishing number issued
 under this chapter or who is licensed under Chapter 2301,
 Occupations Code.
 (d)  A dealer shall obtain 24-hour Internet access at its
 place of business, but if the dealer is unable to access the
 Internet at the time of the sale of a vehicle, the dealer shall
 complete and sign a form, as prescribed by the department, that
 states the dealer has Internet access, but was unable to access the
 Internet at the time of sale to enter the buyer's information into
 the database as required by Subsection (c).  [The buyer shall keep
 the original copy of the form in the vehicle until the vehicle is
 registered to the buyer.]  Not later than the next business day
 after the time of sale, the dealer shall submit the information
 required under Subsection (c).
 (d-1)  The forms prescribed by the department under
 Subsections (c) and (d) must contain a notice to the buyer
 describing the procedure by which the vehicle's registration
 insignia will be provided to the buyer.
 (d-2)  Until a vehicle displaying a license plate or set of
 license plates issued under Section 503.063 is registered to the
 buyer, the buyer shall keep in the vehicle the original copy of the
 form provided by the dealer as required by, as applicable,
 Subsection (c) or (d).
 SECTION 19.  Subchapter C, Chapter 503, Transportation Code,
 is amended by adding Section 503.0633 to read as follows:
 Sec. 503.0633.  DEPARTMENT REGULATION OF DEALER-ISSUED
 LICENSE PLATES AND ACCESS TO DATABASE OF DEALER-ISSUED LICENSE
 PLATES.  (a)  The department by rule may establish the maximum
 number of license plates or sets of license plates that a dealer may
 obtain in a calendar year under Sections 503.063 and 503.065.
 (b)  The maximum number of license plates or sets of license
 plates that the department determines a dealer may obtain under
 this section must be based on the dealer's anticipated need for
 license plates and sets of license plates, taking into
 consideration:
 (1)  the dealer's:
 (A)  time in operation;
 (B)  sales data; and
 (C)  expected growth;
 (2)  expected changes in the dealer's market;
 (3)  temporary conditions that may affect sales by the
 dealer; and
 (4)  any other information the department considers
 relevant.
 (c)  At the request of a dealer, the department may authorize
 additional license plates or sets of license plates for the dealer
 if the dealer demonstrates a need for additional license plates or
 sets of license plates resulting from business operations,
 including anticipated need.
 (d)  The department's denial of a request under Subsection
 (c) may be overturned if a dealer shows by a preponderance of the
 evidence the need for additional license plates or sets of license
 plates.
 (e)  The department shall monitor the number of license
 plates and sets of license plates obtained by a dealer.
 (f)  If the department determines that a dealer is
 fraudulently obtaining license plates or sets of license plates or
 fraudulently using the database of dealer-issued license plates,
 the department may, after giving notice electronically and by
 certified mail to the dealer, deny access to the database of
 dealer-issued license plates to the dealer.  A dealer denied access
 to the database of dealer-issued license plates under this
 subsection may request a hearing on the denial as provided by
 Subchapter O, Chapter 2301, Occupations Code.
 SECTION 20.  Sections 503.065(a), (b), (c), (d), and (e),
 Transportation Code, are amended to read as follows:
 (a)  The department may issue or cause to be issued to a
 person a temporary  metal license plate authorizing the person to
 operate a new unregistered vehicle on a public highway of this state
 if the person:
 (1)  buys the vehicle from a dealer outside this state
 and intends to drive the vehicle from the dealer's place of
 business; or
 (2)  buys the vehicle from a dealer in this state but
 intends to drive the vehicle from the manufacturer's place of
 business outside this state.
 (b)  The department may not issue a [temporary] license plate
 under this section to a manufacturer or dealer of a motor vehicle,
 trailer, or semitrailer or to a representative of such a dealer.
 (c)  A person may not use a [temporary] license plate issued
 under this section on a vehicle transporting property.
 (d)  A [temporary] license plate issued under this section
 expires on [not later than] the 60th [30th] day after the date on
 which it is issued.  The department shall place or cause to be
 placed on the license plate at the time of issuance the date of
 expiration and the type of vehicle for which the license plate is
 issued.
 (e)  The fee for a [temporary] license plate issued under
 this section is $3. Only one license plate may be issued for each
 vehicle.
 SECTION 21.  Section 503.066(d), Transportation Code, is
 amended to read as follows:
 (d)  A [metal] license plate issued under Section 503.061,
 503.062, or 503.064 [this chapter] expires on the same date as the
 expiration of the license under which it is issued.
 SECTION 22.  Subchapter C, Chapter 503, Transportation Code,
 is amended by adding Section 503.0671 to read as follows:
 Sec. 503.0671.  UNAUTHORIZED USE OR DISTRIBUTION OF
 DEALER-ISSUED LICENSE PLATE.  (a)  A person may not operate in
 violation of this chapter or Chapter 502 a vehicle that displays a
 dealer-issued license plate or set of license plates.
 (b)  A person may not sell or distribute a dealer-issued
 license plate or set of license plates or an item represented to be
 a dealer-issued license plate or set of license plates unless the
 person is a dealer issuing the license plate or set of license
 plates in connection with the sale of a vehicle.
 SECTION 23.  The heading to Section 503.068, Transportation
 Code, is amended to read as follows:
 Sec. 503.068.  LIMITATION ON USE OF DEALER'S LICENSE PLATES
 [AND TAGS].
 SECTION 24.  Sections 503.068(b), (c), and (d),
 Transportation Code, are amended to read as follows:
 (b)  A person may not use a metal dealer's license plate [or
 dealer's temporary tag] on:
 (1)  a service or work vehicle, except as provided by
 Subsection (b-1); or
 (2)  a commercial vehicle that is carrying a load.
 (c)  For purposes of this section, a boat trailer carrying a
 boat is not a commercial vehicle carrying a load.  A dealer
 complying with this chapter may affix to the rear of a boat trailer
 the dealer owns or sells a metal dealer's license plate issued under
 Section 503.061 or a license plate [temporary tag] issued by a
 dealer under Section [503.061, 503.062, or] 503.063 or 503.065.
 (d)  This section does not prohibit the operation or
 conveyance of an unregistered vehicle using the full-mount method,
 saddle-mount method, tow-bar method, or a combination of those
 methods in accordance with Section [503.062 or] 503.063.
 SECTION 25.  The heading to Section 503.069, Transportation
 Code, is amended to read as follows:
 Sec. 503.069.  DISPLAY OF LICENSE PLATES [AND TAGS].
 SECTION 26.  Section 503.069(a), Transportation Code, is
 amended to read as follows:
 (a)  A license plate, other than an in-transit license plate,
 [or a temporary tag] issued under this chapter shall be displayed in
 accordance with commission rules.
 SECTION 27.  The heading to Section 504.901, Transportation
 Code, is amended to read as follows:
 Sec. 504.901.  TRANSFER [AND REMOVAL] OF LICENSE PLATES.
 SECTION 28.  Section 504.901, Transportation Code, is
 amended by amending Subsections (a) and (b) and adding Subsection
 (b-1) to read as follows:
 (a)  On the sale or transfer of a motor vehicle to a dealer
 who holds a general distinguishing number issued under Chapter 503,
 the dealer shall remove each license plate issued for the motor
 vehicle. Each license plate issued for the motor vehicle shall be
 assigned to a subsequent purchaser of the motor vehicle at retail
 sale as required by Section 503.063. [A person may use the license
 plates removed from a motor vehicle on a new motor vehicle purchased
 from a dealer after the person obtains the department's approval of
 a title and registration application.]
 (b)  On the sale or transfer of a motor vehicle to a person
 who does not hold a general distinguishing number issued under
 Chapter 503, [the seller may remove] each license plate issued for
 the motor vehicle shall remain with the motor vehicle. [The license
 plates may be transferred to another vehicle titled in the seller's
 name if the seller obtains:
 [(1) the department's approval of an application to
 transfer the license plates; and
 [(2) a new registration insignia for the motor
 vehicle.]
 (b-1)  The purchaser of a motor vehicle may request
 replacement license plates under Section 504.007.
 SECTION 29.  Subchapter A, Chapter 520, Transportation Code,
 is amended by adding Section 520.0055 to read as follows:
 Sec. 520.0055.  DUTIES OF MOTOR VEHICLE DEALERS.  A motor
 vehicle dealer shall use the electronic system designed by the
 department and made available by a county assessor-collector under
 Section 520.005 to submit a title and registration application in
 the name of the purchaser of a motor vehicle.
 SECTION 30.  Section 548.052, Transportation Code, is
 amended to read as follows:
 Sec. 548.052.  VEHICLES NOT SUBJECT TO INSPECTION.  This
 chapter does not apply to:
 (1)  a trailer, semitrailer, pole trailer, or mobile
 home moving under or bearing a current factory-delivery license
 plate or current in-transit license plate;
 (2)  a vehicle moving under or bearing a [paper dealer
 in-transit tag,] machinery license, disaster license, parade
 license, prorate tab, one-trip permit, vehicle temporary transit
 permit, antique license, custom vehicle license, street rod
 license, temporary 24-hour permit, or permit license;
 (3)  a trailer, semitrailer, pole trailer, or mobile
 home having an actual gross weight or registered gross weight of
 7,500 pounds or less;
 (4)  farm machinery, road-building equipment, a farm
 trailer, or a vehicle required to display a slow-moving-vehicle
 emblem under Section 547.703;
 (5)  a former military vehicle, as defined by Section
 504.502;
 (6)  a vehicle qualified for a tax exemption under
 Section 152.092, Tax Code; or
 (7)  a vehicle for which a certificate of title has been
 issued but that is not required to be registered, including an
 off-highway vehicle registered under Section 502.140(c).
 SECTION 31.  Section 601.002(12), Transportation Code, is
 amended to read as follows:
 (12)  "Vehicle registration" means:
 (A)  a registration certificate, registration
 receipt, or number plate issued under Chapter 502; or
 (B)  a dealer's license plate [or temporary tag]
 issued under Chapter 503.
 SECTION 32.  The following provisions of the Transportation
 Code are repealed:
 (1)  Section 502.092;
 (2)  Section 502.477;
 (3)  Section 503.062(d);
 (4)  Section 503.0625;
 (5)  Section 503.0626;
 (6)  Section 503.0632;
 (7)  Section 503.067;
 (8)  Section 503.068(a);
 (9)  Section 503.094(d); and
 (10)  Sections 504.901(c), (d), and (e).
 SECTION 33.  The changes in law made by this Act apply only
 to an offense committed on or after July 1, 2025.  An offense
 committed before July 1, 2025, is governed by the law in effect on
 the date the offense was committed, and the former law is continued
 in effect for that purpose.  For purposes of this section, an
 offense was committed before July 1, 2025, if any element of the
 offense was committed before that date.
 SECTION 34.  The Texas Department of Motor Vehicles may
 adopt rules necessary to implement or administer the changes in law
 made by this Act. Rules adopted under this section must be adopted
 not later than December 1, 2024.
 SECTION 35.  To the extent of any conflict, this Act prevails
 over another Act of the 88th Legislature, Regular Session, 2023,
 relating to nonsubstantive additions to and corrections in enacted
 codes.
 SECTION 36.  This Act takes effect July 1, 2025.
 ______________________________ ______________________________
 President of the Senate Speaker of the House
 I certify that H.B. No. 718 was passed by the House on May 2,
 2023, by the following vote:  Yeas 145, Nays 0, 1 present, not
 voting; and that the House concurred in Senate amendments to H.B.
 No. 718 on May 26, 2023, by the following vote:  Yeas 137, Nays 0, 1
 present, not voting.
 ______________________________
 Chief Clerk of the House
 I certify that H.B. No. 718 was passed by the Senate, with
 amendments, on May 24, 2023, by the following vote:  Yeas 29, Nays
 2.
 ______________________________
 Secretary of the Senate
 APPROVED: __________________
 Date
 __________________
 Governor