Texas 2023 - 88th Regular

Texas House Bill HB718 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	H.B. No. 718
2	2
3	3
4	4	AN ACT
5	5	relating to the issuance of certain tags, permits, and license
6	6	plates authorizing the movement of vehicles and the transfer and
7	7	renewal of certain license plates.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. The heading to Section 152.027, Tax Code, is
10	10	amended to read as follows:
11	11	Sec. 152.027. TAX ON [METAL] DEALER PLATES.
12	12	SECTION 2. Section 152.027(a), Tax Code, is amended to read
13	13	as follows:
14	14	(a) A use tax is imposed on each person to whom is issued a
15	15	[metal] dealer's plate under Section 503.061 or 503.0615,
16	16	[authorized by Chapter 503,] Transportation Code.
17	17	SECTION 3. Section 152.042, Tax Code, is amended to read as
18	18	follows:
19	19	Sec. 152.042. COLLECTION OF TAX ON DEALER'S LICENSE [METAL
20	20	DEALER] PLATES. A person required to pay the tax imposed by Section
21	21	152.027 shall pay the tax to the Texas Department of Motor Vehicles,
22	22	and the department may not issue the [metal] dealer's license
23	23	plates until the tax is paid.
24	24	SECTION 4. Section 501.022(d), Transportation Code, is
25	25	amended to read as follows:
26	26	(d) Subsection (c) does not apply to a motor vehicle
27	27	operated on a public highway in this state with a [metal] dealer's
28	28	license plate [or a dealer's or buyer's temporary tag] attached to
29	29	the vehicle as provided by Chapter 503.
30	30	SECTION 5. Sections 501.0236(b) and (d), Transportation
31	31	Code, are amended to read as follows:
32	32	(b) A purchaser to whom this section applies may apply for[:
33	33	[(1)] a title in the manner prescribed by the
34	34	department by rule[; and
35	35	[(2) on expiration of the buyer's tag issued to the
36	36	purchaser under Section 503.063, a 30-day permit under Section
37	37	502.095].
38	38	(d) The department shall waive the payment of fees for[:
39	39	[(1)] a title issued to a purchaser described by this
40	40	section[,] if the purchaser can show that fees for a title were paid
41	41	to the dealer[; and
42	42	[(2) one 30-day permit issued to a purchaser described
43	43	by this section].
44	44	SECTION 6. Section 502.095, Transportation Code, is amended
45	45	to read as follows:
46	46	Sec. 502.095. ONE-TRIP OR 30-DAY TRIP LICENSE PLATES
47	47	[PERMITS]. (a) The department may issue a temporary metal license
48	48	plate [permit] in lieu of registration for a vehicle subject to
49	49	registration in this state that is not authorized to travel on a
50	50	public highway because of the lack of registration in this state or
51	51	the lack of reciprocity with the state or country in which the
52	52	vehicle is registered.
53	53	(b) A license plate [permit] issued under this section is
54	54	valid for:
55	55	(1) one trip, as provided by Subsection (c); or
56	56	(2) 30 days, as provided by Subsection (d).
57	57	(c) A one-trip license plate [permit] is valid for one trip
58	58	between the points of origin and destination and those intermediate
59	59	points specified in the application and registration receipt.
60	60	Unless the vehicle is a bus operating under charter that is not
61	61	covered by a reciprocity agreement with the state or country in
62	62	which the bus is registered, a one-trip license plate [permit] is
63	63	for the transit of the vehicle only, and the vehicle may not be used
64	64	for the transportation of any passenger or property. A one-trip
65	65	license plate [permit] may not be valid for longer than 15 days from
66	66	the effective date of registration.
67	67	(d) A 30-day license plate [permit] may be issued only to a
68	68	passenger vehicle, a private bus, a trailer or semitrailer with a
69	69	gross weight of not more than 10,000 pounds, a light truck, or a
70	70	light commercial vehicle with a gross vehicle weight of more than
71	71	10,000 pounds that will operate unladen. A person may request from
72	72	the department an extension of the period a [obtain multiple]
73	73	30-day license plate is valid [permits]. The department may issue a
74	74	single registration receipt to apply to all of the periods for which
75	75	the vehicle is registered.
76	76	(e) A person may obtain a license plate [permit] under this
77	77	section by:
78	78	(1) applying as provided by the department to:
79	79	(A) the county assessor-collector of the county
80	80	in which the vehicle will first be operated on a public highway; or
81	81	(B) the department in Austin or at one of the
82	82	department's vehicle title and registration regional offices;
83	83	(2) paying a fee, in the manner prescribed by the
84	84	department including a registration service charge for a credit
85	85	card payment or escrow account of:
86	86	(A) $5 for a one-trip license plate [permit]; or
87	87	(B) $25 for each 30-day license plate [period];
88	88	and
89	89	(3) furnishing evidence of financial responsibility
90	90	for the vehicle in a form listed under Section 502.046(c).
91	91	(f) The department shall prepare the design and
92	92	specifications of a license plate issued under this section. [A
93	93	registration receipt shall be carried in the vehicle at all times
94	94	during the period in which it is valid.] The license plate
95	95	[temporary tag] must contain all pertinent information required by
96	96	this section and must be displayed as prescribed by department
97	97	rule. [in the rear window of the vehicle so that the tag is clearly
98	98	visible and legible when viewed from the rear of the vehicle. If
99	99	the vehicle does not have a rear window, the temporary tag must be
100	100	attached on or carried in the vehicle to allow ready inspection.]
101	101	The registration receipt must be carried in the vehicle at all times
102	102	during the period in which it is valid.
103	103	(g) The department may refuse and may instruct a county
104	104	assessor-collector to refuse to issue a license plate [temporary
105	105	registration] for any vehicle if, in the department's opinion, the
106	106	vehicle or the owner of the vehicle has been involved in operations
107	107	that constitute an abuse of the privilege granted by this
108	108	section. A license plate [registration] issued after notice to a
109	109	county assessor-collector under this subsection is void.
110	110	(h) A vehicle operated with a license plate under this
111	111	section is exempt from the inspection requirements of Chapter 548.
112	112	SECTION 7. Section 501.147, Transportation Code, is amended
113	113	by amending Subsection (a) and adding Subsection (a-1) to read as
114	114	follows:
115	115	(a) On receipt of a written notice of transfer from the
116	116	seller of a motor vehicle or a dealer who holds a general
117	117	distinguishing number issued under Chapter 503, the department
118	118	shall indicate the transfer on the motor vehicle records maintained
119	119	by the department. As an alternative to a written notice of
120	120	transfer, the department shall establish procedures that permit the
121	121	seller of a motor vehicle or a dealer who holds a general
122	122	distinguishing number issued under Chapter 503 to electronically
123	123	submit a notice of transfer to the department through the
124	124	department's Internet website. A notice of transfer provided
125	125	through the department's Internet website is not required to bear
126	126	the signature of the seller or include the date of signing.
127	127	(a-1) On the sale or transfer of a motor vehicle to a dealer
128	128	who holds a general distinguishing number issued under Chapter 503,
129	129	the dealer shall submit the notice of transfer under Subsection
130	130	(a).
131	131	SECTION 8. Section 502.410(b), Transportation Code, is
132	132	amended to read as follows:
133	133	(b) Subsection (a) does not apply to a statement or
134	134	application filed or given under Section 502.060, [502.092,]
135	135	502.093, 502.094, 502.095, 504.201, 504.202(b-1), 504.508, or
136	136	504.515.
137	137	SECTION 9. Section 503.008(a), Transportation Code, is
138	138	amended to read as follows:
139	139	(a) The fee for:
140	140	(1) a [metal] dealer's license plate issued under
141	141	Section 503.061 is $20 a year; and
142	142	(2) a dealer's temporary license plate issued under
143	143	Section 503.062 is $10.
144	144	SECTION 10. Sections 503.038(a) and (c), Transportation
145	145	Code, are amended to read as follows:
146	146	(a) The department may cancel a dealer's general
147	147	distinguishing number if the dealer:
148	148	(1) falsifies or forges a title document, including an
149	149	affidavit making application for a certified copy of a title;
150	150	(2) files a false or forged tax document, including a
151	151	sales tax affidavit;
152	152	(3) fails to take assignment of any basic evidence of
153	153	ownership, including a certificate of title or manufacturer's
154	154	certificate, for a vehicle the dealer acquires;
155	155	(4) fails to assign any basic evidence of ownership,
156	156	including a certificate of title or manufacturer's certificate, for
157	157	a vehicle the dealer sells;
158	158	(5) uses or permits the use of a [metal] dealer's
159	159	license plate [or a dealer's temporary tag] on a vehicle that the
160	160	dealer does not own or control or that is not in stock and offered
161	161	for sale;
162	162	(6) makes a material misrepresentation in an
163	163	application or other information filed with the department;
164	164	(7) fails to maintain the qualifications for a general
165	165	distinguishing number;
166	166	(8) fails to provide to the department within 30 days
167	167	after the date of demand by the department satisfactory and
168	168	reasonable evidence that the person is regularly and actively
169	169	engaged in business as a wholesale or retail dealer;
170	170	(9) has been licensed for at least 12 months and has
171	171	not assigned at least five vehicles during the previous 12-month
172	172	period;
173	173	(10) has failed to demonstrate compliance with
174	174	Sections 23.12, 23.121, and 23.122, Tax Code;
175	175	(11) uses or allows the use of the dealer's general
176	176	distinguishing number or the location for which the general
177	177	distinguishing number is issued to avoid the requirements of this
178	178	chapter; or
179	179	(12) [misuses or allows the misuse of a temporary tag
180	180	authorized under this chapter;
181	181	[(13) refuses to show on a buyer's temporary tag the
182	182	date of sale or other reasonable information required by the
183	183	department; or
184	184	[(14)] otherwise violates this chapter or a rule
185	185	adopted under this chapter.
186	186	(c) A person whose general distinguishing number is
187	187	canceled under this chapter shall surrender to a representative of
188	188	the department each license, license plate, [temporary tag,]
189	189	sticker, and receipt issued under this chapter not later than the
190	190	10th day after the date the general distinguishing number is
191	191	canceled. The department shall direct any peace officer or
192	192	designated department employee to secure and return to the
193	193	department any plate, [tag,] sticker, or receipt of a person who
194	194	does not comply with this subsection.
195	195	SECTION 11. The heading to Subchapter C, Chapter 503,
196	196	Transportation Code, is amended to read as follows:
197	197	SUBCHAPTER C. LICENSE PLATES [AND TAGS]
198	198	SECTION 12. Section 503.061(a), Transportation Code, is
199	199	amended to read as follows:
200	200	(a) Instead of registering under Chapter 502 a vehicle that
201	201	the dealer owns, operates, or permits to be operated on a public
202	202	street or highway, the dealer may apply for, receive, and attach
203	203	[metal] dealer's license plates to the vehicle if it is the type of
204	204	vehicle:
205	205	(1) that the dealer sells; and
206	206	(2) for which the dealer has been issued a general
207	207	distinguishing number.
208	208	SECTION 13. Sections 503.0618(b) and (c), Transportation
209	209	Code, are amended to read as follows:
210	210	(b) Instead of registering under Chapter 502 a vehicle that
211	211	a converter operates or permits to be operated on a public street or
212	212	highway, the converter may apply for, receive, and attach [metal]
213	213	converter's license plates to the vehicle if it is the type of
214	214	vehicle that the converter is engaged in the business of assembling
215	215	or modifying.
216	216	(c) The fee for a [metal] converter's license plate is $20 a
217	217	year.
218	218	SECTION 14. The heading to Section 503.062, Transportation
219	219	Code, is amended to read as follows:
220	220	Sec. 503.062. DEALER'S TEMPORARY LICENSE PLATE [TAGS].
221	221	SECTION 15. Section 503.062(a), Transportation Code, is
222	222	amended to read as follows:
223	223	(a) A dealer may issue a temporary license plate [tag] for
224	224	use on an unregistered vehicle by the dealer or the dealer's
225	225	employees only to:
226	226	(1) demonstrate or cause to be demonstrated to a
227	227	prospective buyer the vehicle for sale purposes only;
228	228	(2) convey or cause to be conveyed the vehicle:
229	229	(A) from one of the dealer's places of business
230	230	in this state to another of the dealer's places of business in this
231	231	state;
232	232	(B) from the dealer's place of business to a
233	233	place the vehicle is to be repaired, reconditioned, or serviced;
234	234	(C) from the state line or a location in this
235	235	state where the vehicle is unloaded to the dealer's place of
236	236	business;
237	237	(D) from the dealer's place of business to a
238	238	place of business of another dealer;
239	239	(E) from the point of purchase by the dealer to
240	240	the dealer's place of business; or
241	241	(F) to road test the vehicle; or
242	242	(3) use the vehicle for or allow its use by a
243	243	charitable organization.
244	244	SECTION 16. Section 503.063, Transportation Code, is
245	245	amended to read as follows:
246	246	Sec. 503.063. DEALER-ISSUED LICENSE PLATES FOR BUYER
247	247	[BUYER'S TEMPORARY TAGS]. (a) Except as provided by this section,
248	248	a dealer shall issue to a person who buys a vehicle:
249	249	(1) a license plate or set of license plates, if a
250	250	license plate is required by law to be displayed on [one temporary
251	251	buyer's tag for] the vehicle; and
252	252	(2) a completed and signed form required by, as
253	253	applicable, Section 503.0631(c) or (d).
254	254	(b) A license plate or set of license plates issued under
255	255	this section [Except as provided by this section, the buyer's tag]
256	256	is valid for the operation of the vehicle while the registration
257	257	application submitted by the dealer on behalf of the buyer under
258	258	Section 501.0234 is pending [until the earlier of:
259	259	[(1) the date on which the vehicle is registered; or
260	260	[(2) the 60th day after the date of purchase].
261	261	(c) Except as otherwise provided by this subsection, at the
262	262	time of issuance of a license plate or set of license plates under
263	263	this section, the [The] dealer[:
264	264	[(1) must show in ink on the buyer's tag the actual date
265	265	of sale and any other required information; and
266	266	[(2)] is responsible for displaying the license plate
267	267	or set of license plates in compliance with department rules [tag].
268	268	If a vehicle is a passenger car or light truck that is not equipped
269	269	by the manufacturer with an exterior front feature to which a
270	270	license plate may be fastened without drilling through the exterior
271	271	of the vehicle, the dealer shall affix the rear license plate in
272	272	compliance with department rules and provide the unmounted
273	273	remaining license plate to the vehicle buyer.
274	274	(d) The dealer is responsible for the safekeeping and
275	275	distribution of each license plate or set of license plates
276	276	[buyer's tag] the dealer obtains from the department. The dealer is
277	277	liable for missing or misused license plates. The department may
278	278	conduct a review of a dealer's compliance with this subsection.
279	279	(e) A dealer shall obtain license plates and sets of license
280	280	plates from the [The] department in the manner provided by
281	281	department rules [may not issue a buyer's tag or contract for the
282	282	issuance of a buyer's tag but shall prescribe:
283	283	[(1) the specifications, color, and form of a buyer's
284	284	tag; and
285	285	[(2) procedures for a dealer to:
286	286	[(A) generate a vehicle-specific number using
287	287	the database developed under Section 503.0631 and assign it to each
288	288	tag;
289	289	[(B) generate a vehicle-specific number using
290	290	the database developed under Section 503.0631 for future use for
291	291	when a dealer is unable to access the Internet at the time of sale;
292	292	and
293	293	[(C) clearly display the vehicle-specific number
294	294	on the tag].
295	295	(f) The department shall ensure that a dealer may obtain
296	296	[generate] in advance a sufficient amount of license plates or sets
297	297	of license plates [vehicle-specific numbers under Subsection
298	298	(e)(2)(B)] in order to continue selling vehicles without an
299	299	unreasonable disruption of business due to the unavailability of
300	300	license plates [for a period of up to one week in which a dealer is
301	301	unable to access the Internet due to an emergency]. The department
302	302	shall establish an expedited procedure to allow a dealer [affected
303	303	dealers] to obtain [apply for] additional license plates or sets of
304	304	license plates [vehicle-specific numbers] so the dealer [they] may
305	305	remain in business [during an emergency].
306	306	(g) For each license plate or set of license plates issued
307	307	to a buyer under this section, the [buyer's temporary tag, a] dealer
308	308	shall charge the buyer a registration fee [of not more than $5 as]
309	309	prescribed by the department to be sent to the comptroller for
310	310	deposit to the credit of the Texas Department of Motor Vehicles
311	311	fund.
312	312	(h) A federal, state, or local governmental agency that is
313	313	exempt under Section 503.024 from the requirement to obtain a
314	314	dealer general distinguishing number may issue one license plate or
315	315	set of license plates [temporary buyer's tag] in accordance with
316	316	this section for a vehicle sold or otherwise disposed of by the
317	317	governmental agency under Chapter 2175, Government Code, or other
318	318	law that authorizes the governmental agency to sell or otherwise
319	319	dispose of the vehicle. A governmental agency that issues a license
320	320	plate or set of license plates [temporary buyer's tag] under this
321	321	subsection:
322	322	(1) is subject to the provisions of Section [Sections]
323	323	503.0631 [and 503.067] applicable to a dealer; and
324	324	(2) is not required to charge the registration fee
325	325	under Subsection (g).
326	326	(i) A vehicle may be issued and display a temporary license
327	327	plate under this section [buyer's tag] without satisfying the
328	328	inspection requirements of Chapter 548 if:
329	329	(1) the buyer of the vehicle is not a resident of this
330	330	state; and
331	331	(2) the vehicle:
332	332	(A) at the time of purchase, is not located or
333	333	required to be titled or registered in this state;
334	334	(B) will be titled and registered in accordance
335	335	with the laws of the buyer's state of residence; and
336	336	(C) will be inspected in accordance with the laws
337	337	of the buyer's state of residence, if the laws of that state require
338	338	inspection.
339	339	(i-1) A temporary license plate issued to a vehicle
340	340	described by Subsection (i) is valid for 60 days.
341	341	(j) A vehicle may be issued and display a license plate or
342	342	set of license plates under this section [buyer's tag] without
343	343	satisfying the inspection requirements of Chapter 548 if the
344	344	vehicle is purchased at public auction in this state and is:
345	345	(1) an antique vehicle as defined by Section
346	346	683.077(b); or
347	347	(2) a special interest vehicle as defined by Section
348	348	683.077(b) that:
349	349	(A) is at least 12 years of age; and
350	350	(B) has been the subject of a retail sale.
351	351	(k) A dealer may not issue a license plate or set of license
352	352	plates for a vehicle that is exempt from the payment of registration
353	353	fees under Subchapter J, Chapter 502, until the department approves
354	354	the application for registration of the vehicle.
355	355	SECTION 17. The heading to Section 503.0631, Transportation
356	356	Code, is amended to read as follows:
357	357	Sec. 503.0631. [BUYER'S TEMPORARY TAG] DATABASE OF
358	358	DEALER-ISSUED LICENSE PLATES.
359	359	SECTION 18. Section 503.0631, Transportation Code, is
360	360	amended by amending Subsections (a), (b), (c), and (d) and adding
361	361	Subsections (c-1), (d-1), and (d-2) to read as follows:
362	362	(a) The department shall develop, manage, and maintain a
363	363	secure, real-time database of information on buyers [persons] to
364	364	whom dealers issue a license plate or set of license plates under
365	365	Section 503.063 or 503.065 [temporary buyer's tags are issued] that
366	366	may be used by a law enforcement agency in the same manner that the
367	367	agency uses vehicle registration information.
368	368	(b) The database must allow law enforcement agencies to use
369	369	the information required to be included on a license plate [a
370	370	vehicle-specific number assigned to and displayed on the tag as
371	371	required by Section 503.063(e)(2)] to obtain information about the
372	372	person to whom the license plate [tag] was issued.
373	373	(c) Except as provided by Subsection (d), before a license
374	374	plate or set of license plates issued under Section 503.063 or
375	375	503.065 [buyer's temporary tag] may be displayed on a vehicle, a
376	376	dealer must, as prescribed by the department:
377	377	(1) enter into the database through the Internet
378	378	information about the buyer of the vehicle for which the license
379	379	plate or set of license plates [tag] was issued; [as prescribed by
380	380	the department] and
381	381	(2) complete and sign a form prescribed by the
382	382	department stating that the dealer entered the buyer's information
383	383	into the database as required by Subdivision (1) [generate a
384	384	vehicle-specific number for the tag as required by Section
385	385	503.063(e)].
386	386	(c-1) Except as provided by Section 503.0633(f)
387	387	[506.0632(f)], the department may not deny access to the database
388	388	to any dealer who holds a general distinguishing number issued
389	389	under this chapter or who is licensed under Chapter 2301,
390	390	Occupations Code.
391	391	(d) A dealer shall obtain 24-hour Internet access at its
392	392	place of business, but if the dealer is unable to access the
393	393	Internet at the time of the sale of a vehicle, the dealer shall
394	394	complete and sign a form, as prescribed by the department, that
395	395	states the dealer has Internet access, but was unable to access the
396	396	Internet at the time of sale to enter the buyer's information into
397	397	the database as required by Subsection (c). [The buyer shall keep
398	398	the original copy of the form in the vehicle until the vehicle is
399	399	registered to the buyer.] Not later than the next business day
400	400	after the time of sale, the dealer shall submit the information
401	401	required under Subsection (c).
402	402	(d-1) The forms prescribed by the department under
403	403	Subsections (c) and (d) must contain a notice to the buyer
404	404	describing the procedure by which the vehicle's registration
405	405	insignia will be provided to the buyer.
406	406	(d-2) Until a vehicle displaying a license plate or set of
407	407	license plates issued under Section 503.063 is registered to the
408	408	buyer, the buyer shall keep in the vehicle the original copy of the
409	409	form provided by the dealer as required by, as applicable,
410	410	Subsection (c) or (d).
411	411	SECTION 19. Subchapter C, Chapter 503, Transportation Code,
412	412	is amended by adding Section 503.0633 to read as follows:
413	413	Sec. 503.0633. DEPARTMENT REGULATION OF DEALER-ISSUED
414	414	LICENSE PLATES AND ACCESS TO DATABASE OF DEALER-ISSUED LICENSE
415	415	PLATES. (a) The department by rule may establish the maximum
416	416	number of license plates or sets of license plates that a dealer may
417	417	obtain in a calendar year under Sections 503.063 and 503.065.
418	418	(b) The maximum number of license plates or sets of license
419	419	plates that the department determines a dealer may obtain under
420	420	this section must be based on the dealer's anticipated need for
421	421	license plates and sets of license plates, taking into
422	422	consideration:
423	423	(1) the dealer's:
424	424	(A) time in operation;
425	425	(B) sales data; and
426	426	(C) expected growth;
427	427	(2) expected changes in the dealer's market;
428	428	(3) temporary conditions that may affect sales by the
429	429	dealer; and
430	430	(4) any other information the department considers
431	431	relevant.
432	432	(c) At the request of a dealer, the department may authorize
433	433	additional license plates or sets of license plates for the dealer
434	434	if the dealer demonstrates a need for additional license plates or
435	435	sets of license plates resulting from business operations,
436	436	including anticipated need.
437	437	(d) The department's denial of a request under Subsection
438	438	(c) may be overturned if a dealer shows by a preponderance of the
439	439	evidence the need for additional license plates or sets of license
440	440	plates.
441	441	(e) The department shall monitor the number of license
442	442	plates and sets of license plates obtained by a dealer.
443	443	(f) If the department determines that a dealer is
444	444	fraudulently obtaining license plates or sets of license plates or
445	445	fraudulently using the database of dealer-issued license plates,
446	446	the department may, after giving notice electronically and by
447	447	certified mail to the dealer, deny access to the database of
448	448	dealer-issued license plates to the dealer. A dealer denied access
449	449	to the database of dealer-issued license plates under this
450	450	subsection may request a hearing on the denial as provided by
451	451	Subchapter O, Chapter 2301, Occupations Code.
452	452	SECTION 20. Sections 503.065(a), (b), (c), (d), and (e),
453	453	Transportation Code, are amended to read as follows:
454	454	(a) The department may issue or cause to be issued to a
455	455	person a temporary metal license plate authorizing the person to
456	456	operate a new unregistered vehicle on a public highway of this state
457	457	if the person:
458	458	(1) buys the vehicle from a dealer outside this state
459	459	and intends to drive the vehicle from the dealer's place of
460	460	business; or
461	461	(2) buys the vehicle from a dealer in this state but
462	462	intends to drive the vehicle from the manufacturer's place of
463	463	business outside this state.
464	464	(b) The department may not issue a [temporary] license plate
465	465	under this section to a manufacturer or dealer of a motor vehicle,
466	466	trailer, or semitrailer or to a representative of such a dealer.
467	467	(c) A person may not use a [temporary] license plate issued
468	468	under this section on a vehicle transporting property.
469	469	(d) A [temporary] license plate issued under this section
470	470	expires on [not later than] the 60th [30th] day after the date on
471	471	which it is issued. The department shall place or cause to be
472	472	placed on the license plate at the time of issuance the date of
473	473	expiration and the type of vehicle for which the license plate is
474	474	issued.
475	475	(e) The fee for a [temporary] license plate issued under
476	476	this section is $3. Only one license plate may be issued for each
477	477	vehicle.
478	478	SECTION 21. Section 503.066(d), Transportation Code, is
479	479	amended to read as follows:
480	480	(d) A [metal] license plate issued under Section 503.061,
481	481	503.062, or 503.064 [this chapter] expires on the same date as the
482	482	expiration of the license under which it is issued.
483	483	SECTION 22. Subchapter C, Chapter 503, Transportation Code,
484	484	is amended by adding Section 503.0671 to read as follows:
485	485	Sec. 503.0671. UNAUTHORIZED USE OR DISTRIBUTION OF
486	486	DEALER-ISSUED LICENSE PLATE. (a) A person may not operate in
487	487	violation of this chapter or Chapter 502 a vehicle that displays a
488	488	dealer-issued license plate or set of license plates.
489	489	(b) A person may not sell or distribute a dealer-issued
490	490	license plate or set of license plates or an item represented to be
491	491	a dealer-issued license plate or set of license plates unless the
492	492	person is a dealer issuing the license plate or set of license
493	493	plates in connection with the sale of a vehicle.
494	494	SECTION 23. The heading to Section 503.068, Transportation
495	495	Code, is amended to read as follows:
496	496	Sec. 503.068. LIMITATION ON USE OF DEALER'S LICENSE PLATES
497	497	[AND TAGS].
498	498	SECTION 24. Sections 503.068(b), (c), and (d),
499	499	Transportation Code, are amended to read as follows:
500	500	(b) A person may not use a metal dealer's license plate [or
501	501	dealer's temporary tag] on:
502	502	(1) a service or work vehicle, except as provided by
503	503	Subsection (b-1); or
504	504	(2) a commercial vehicle that is carrying a load.
505	505	(c) For purposes of this section, a boat trailer carrying a
506	506	boat is not a commercial vehicle carrying a load. A dealer
507	507	complying with this chapter may affix to the rear of a boat trailer
508	508	the dealer owns or sells a metal dealer's license plate issued under
509	509	Section 503.061 or a license plate [temporary tag] issued by a
510	510	dealer under Section [503.061, 503.062, or] 503.063 or 503.065.
511	511	(d) This section does not prohibit the operation or
512	512	conveyance of an unregistered vehicle using the full-mount method,
513	513	saddle-mount method, tow-bar method, or a combination of those
514	514	methods in accordance with Section [503.062 or] 503.063.
515	515	SECTION 25. The heading to Section 503.069, Transportation
516	516	Code, is amended to read as follows:
517	517	Sec. 503.069. DISPLAY OF LICENSE PLATES [AND TAGS].
518	518	SECTION 26. Section 503.069(a), Transportation Code, is
519	519	amended to read as follows:
520	520	(a) A license plate, other than an in-transit license plate,
521	521	[or a temporary tag] issued under this chapter shall be displayed in
522	522	accordance with commission rules.
523	523	SECTION 27. The heading to Section 504.901, Transportation
524	524	Code, is amended to read as follows:
525	525	Sec. 504.901. TRANSFER [AND REMOVAL] OF LICENSE PLATES.
526	526	SECTION 28. Section 504.901, Transportation Code, is
527	527	amended by amending Subsections (a) and (b) and adding Subsection
528	528	(b-1) to read as follows:
529	529	(a) On the sale or transfer of a motor vehicle to a dealer
530	530	who holds a general distinguishing number issued under Chapter 503,
531	531	the dealer shall remove each license plate issued for the motor
532	532	vehicle. Each license plate issued for the motor vehicle shall be
533	533	assigned to a subsequent purchaser of the motor vehicle at retail
534	534	sale as required by Section 503.063. [A person may use the license
535	535	plates removed from a motor vehicle on a new motor vehicle purchased
536	536	from a dealer after the person obtains the department's approval of
537	537	a title and registration application.]
538	538	(b) On the sale or transfer of a motor vehicle to a person
539	539	who does not hold a general distinguishing number issued under
540	540	Chapter 503, [the seller may remove] each license plate issued for
541	541	the motor vehicle shall remain with the motor vehicle. [The license
542	542	plates may be transferred to another vehicle titled in the seller's
543	543	name if the seller obtains:
544	544	[(1) the department's approval of an application to
545	545	transfer the license plates; and
546	546	[(2) a new registration insignia for the motor
547	547	vehicle.]
548	548	(b-1) The purchaser of a motor vehicle may request
549	549	replacement license plates under Section 504.007.
550	550	SECTION 29. Subchapter A, Chapter 520, Transportation Code,
551	551	is amended by adding Section 520.0055 to read as follows:
552	552	Sec. 520.0055. DUTIES OF MOTOR VEHICLE DEALERS. A motor
553	553	vehicle dealer shall use the electronic system designed by the
554	554	department and made available by a county assessor-collector under
555	555	Section 520.005 to submit a title and registration application in
556	556	the name of the purchaser of a motor vehicle.
557	557	SECTION 30. Section 548.052, Transportation Code, is
558	558	amended to read as follows:
559	559	Sec. 548.052. VEHICLES NOT SUBJECT TO INSPECTION. This
560	560	chapter does not apply to:
561	561	(1) a trailer, semitrailer, pole trailer, or mobile
562	562	home moving under or bearing a current factory-delivery license
563	563	plate or current in-transit license plate;
564	564	(2) a vehicle moving under or bearing a [paper dealer
565	565	in-transit tag,] machinery license, disaster license, parade
566	566	license, prorate tab, one-trip permit, vehicle temporary transit
567	567	permit, antique license, custom vehicle license, street rod
568	568	license, temporary 24-hour permit, or permit license;
569	569	(3) a trailer, semitrailer, pole trailer, or mobile
570	570	home having an actual gross weight or registered gross weight of
571	571	7,500 pounds or less;
572	572	(4) farm machinery, road-building equipment, a farm
573	573	trailer, or a vehicle required to display a slow-moving-vehicle
574	574	emblem under Section 547.703;
575	575	(5) a former military vehicle, as defined by Section
576	576	504.502;
577	577	(6) a vehicle qualified for a tax exemption under
578	578	Section 152.092, Tax Code; or
579	579	(7) a vehicle for which a certificate of title has been
580	580	issued but that is not required to be registered, including an
581	581	off-highway vehicle registered under Section 502.140(c).
582	582	SECTION 31. Section 601.002(12), Transportation Code, is
583	583	amended to read as follows:
584	584	(12) "Vehicle registration" means:
585	585	(A) a registration certificate, registration
586	586	receipt, or number plate issued under Chapter 502; or
587	587	(B) a dealer's license plate [or temporary tag]
588	588	issued under Chapter 503.
589	589	SECTION 32. The following provisions of the Transportation
590	590	Code are repealed:
591	591	(1) Section 502.092;
592	592	(2) Section 502.477;
593	593	(3) Section 503.062(d);
594	594	(4) Section 503.0625;
595	595	(5) Section 503.0626;
596	596	(6) Section 503.0632;
597	597	(7) Section 503.067;
598	598	(8) Section 503.068(a);
599	599	(9) Section 503.094(d); and
600	600	(10) Sections 504.901(c), (d), and (e).
601	601	SECTION 33. The changes in law made by this Act apply only
602	602	to an offense committed on or after July 1, 2025. An offense
603	603	committed before July 1, 2025, is governed by the law in effect on
604	604	the date the offense was committed, and the former law is continued
605	605	in effect for that purpose. For purposes of this section, an
606	606	offense was committed before July 1, 2025, if any element of the
607	607	offense was committed before that date.
608	608	SECTION 34. The Texas Department of Motor Vehicles may
609	609	adopt rules necessary to implement or administer the changes in law
610	610	made by this Act. Rules adopted under this section must be adopted
611	611	not later than December 1, 2024.
612	612	SECTION 35. To the extent of any conflict, this Act prevails
613	613	over another Act of the 88th Legislature, Regular Session, 2023,
614	614	relating to nonsubstantive additions to and corrections in enacted
615	615	codes.
616	616	SECTION 36. This Act takes effect July 1, 2025.
617	617	______________________________ ______________________________
618	618	President of the Senate Speaker of the House
619	619	I certify that H.B. No. 718 was passed by the House on May 2,
620	620	2023, by the following vote: Yeas 145, Nays 0, 1 present, not
621	621	voting; and that the House concurred in Senate amendments to H.B.
622	622	No. 718 on May 26, 2023, by the following vote: Yeas 137, Nays 0, 1
623	623	present, not voting.
624	624	______________________________
625	625	Chief Clerk of the House
626	626	I certify that H.B. No. 718 was passed by the Senate, with
627	627	amendments, on May 24, 2023, by the following vote: Yeas 29, Nays
628	628	2.
629	629	______________________________
630	630	Secretary of the Senate
631	631	APPROVED: __________________
632	632	Date
633	633	__________________
634	634	Governor