BILL ANALYSIS

H.B. 4966

By: Canales

Transportation

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The bill author has informed the committee of instances in which the Texas Department of Motor Vehicles (TxDMV) has determined that there have been certain types of fraudulent activity related to the acquisition and use of dealer-issued license plates, which have resulted in unregistered vehicle sales, avoidance of inspections, and other regulatory violations, and has further informed the committee that under current statute a dealer's access to the database of dealer-issued license plates maintained by TxDMV may be denied if TxDMV determines a dealer has engaged in the fraudulent activity. H.B. 4966 seeks to also deny such access if TxDMV determines a dealer is obtaining or using vehicle inspection reports knowing that the report is counterfeit, tampered with, altered, fictitious, issued for another vehicle, issued for a vehicle failing to meet all emissions inspection requirements, or issued in violation of certain other applicable laws or rules.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 4966 amends the Transportation Code to authorize the Texas Department of Motor Vehicles (TxDMV) to deny access to the database of dealer-issued license plates, after giving notice electronically and by certified mail, to a dealer TxDMV determines is obtaining or using vehicle inspection reports knowing that the report is counterfeit, tampered with, altered, fictitious, issued for another vehicle, issued for a vehicle failing to meet all emissions inspection requirements, or issued in violation of the following:

· statutory provisions governing the inspection of vehicles, rules adopted under those provisions, other applicable state laws; or  

· a law of another state, the United States, the United Mexican States, a state of the United Mexican States, Canada, or a province of Canada.

EFFECTIVE DATE

September 1, 2025.