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4 | 9 | | |
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5 | 10 | | |
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6 | 11 | | A BILL TO BE ENTITLED |
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7 | 12 | | AN ACT |
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8 | 13 | | relating to the administration of the dealer-issued license plates |
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9 | 14 | | database and to the removal and transfer of license plates. |
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10 | 15 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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11 | 16 | | SECTION 1. Section 503.0633(f), Transportation Code, as |
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12 | 17 | | effective July 1, 2025, is amended to read as follows: |
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13 | 18 | | (f) If the department determines that a dealer is |
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14 | 19 | | fraudulently obtaining license plates or sets of license plates or |
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15 | 20 | | fraudulently using the database of dealer-issued license plates, or |
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16 | 21 | | has been denied access to the temporary tag database under former |
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17 | 22 | | Section 503.0632(f), the department may, after giving notice |
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18 | 23 | | electronically and by certified mail to the dealer, deny access to |
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19 | 24 | | the database of dealer-issued license plates to the dealer. A |
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20 | 25 | | dealer denied access to the database of dealer-issued license |
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21 | 26 | | plates under this subsection may request a hearing on the denial as |
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22 | 27 | | provided by Subchapter O, Chapter 2301, Occupations Code. |
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23 | 28 | | SECTION 2. Section 504.901, Transportation Code, as |
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24 | 29 | | effective July 1, 2025, is amended to read as follows: |
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25 | 30 | | Sec. 504.901. REMOVAL AND TRANSFER OF LICENSE PLATES. (a) |
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26 | 31 | | On the sale or transfer of a motor vehicle to a dealer who holds a |
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27 | 32 | | general distinguishing number issued under Chapter 503, the dealer |
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28 | 33 | | shall remove each license plate issued for the motor vehicle. The |
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29 | 34 | | dealer shall transfer each removed license plate to a motor vehicle |
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30 | 35 | | if that motor vehicle is purchased from the dealer and the license |
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31 | 36 | | plates are appropriate for the class of vehicle to which the plates |
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32 | 37 | | are being transferred [Each license plate issued for the motor |
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33 | 38 | | vehicle shall be assigned to a subsequent purchaser of the motor |
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34 | 39 | | vehicle at retail sale as required by Section 503.063]. |
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35 | 40 | | (b) On the sale or transfer of a motor vehicle to a person |
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36 | 41 | | who does not hold a general distinguishing number issued under |
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37 | 42 | | Chapter 503, the seller shall remove each license plate issued for |
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38 | 43 | | the motor vehicle. The removed license plates may be transferred to |
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39 | 44 | | another vehicle titled in the seller's name if the license plates |
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40 | 45 | | are appropriate for the class of vehicle to which the plates are |
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41 | 46 | | being transferred and the seller obtains: |
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42 | 47 | | (1) the department's approval of an application to |
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43 | 48 | | transfer the license plates; and |
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44 | 49 | | (2) a new registration insignia for [shall remain |
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45 | 50 | | with] the motor vehicle. |
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46 | 51 | | (c) A license plate removed from [(b-1) The purchaser of] a |
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47 | 52 | | motor vehicle that is not transferred to another motor vehicle must |
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48 | 53 | | be disposed of in a manner prescribed by the department not later |
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49 | 54 | | than the 10th day after the date the license plate is removed from |
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50 | 55 | | the motor vehicle [may request replacement license plates under |
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51 | 56 | | Section 504.007]. |
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52 | 57 | | SECTION 3. Not later than October 1, 2025, the Texas |
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53 | 58 | | Department of Motor Vehicles shall adopt rules as necessary to |
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54 | 59 | | implement or administer the changes in law made by this Act. |
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55 | 60 | | SECTION 4. This Act takes effect July 1, 2025, if this Act |
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56 | 61 | | receives a vote of two-thirds of all the members elected to each |
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57 | 62 | | house, as provided by Section 39, Article III, Texas Constitution. |
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58 | 63 | | If this Act does not receive the vote necessary to take effect on |
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59 | 64 | | that date, this Act takes effect September 1, 2025. |
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