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