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A BILL TO BE ENTITLED
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AN ACT
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relating to the administration of the dealer-issued license plates |
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database and to the removal and transfer of license plates. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 503.0633(f), Transportation Code, as |
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effective July 1, 2025, is amended to read as follows: |
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(f) If the department determines that a dealer is |
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fraudulently obtaining license plates or sets of license plates or |
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fraudulently using the database of dealer-issued license plates, or |
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has been denied access to the temporary tag database under former |
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Section 503.0632(f), the department may, after giving notice |
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electronically and by certified mail to the dealer, deny access to |
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the database of dealer-issued license plates to the dealer. A |
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dealer denied access to the database of dealer-issued license |
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plates under this subsection may request a hearing on the denial as |
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provided by Subchapter O, Chapter 2301, Occupations Code. |
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SECTION 2. Section 504.901, Transportation Code, as |
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effective July 1, 2025, is amended to read as follows: |
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Sec. 504.901. REMOVAL AND TRANSFER OF LICENSE PLATES. (a) |
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On the sale or transfer of a motor vehicle to a dealer who holds a |
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general distinguishing number issued under Chapter 503, the dealer |
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shall remove each license plate issued for the motor vehicle. The |
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dealer shall transfer each removed license plate to a motor vehicle |
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if that motor vehicle is purchased from the dealer and the license |
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plates are appropriate for the class of vehicle to which the plates |
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are being transferred [Each license plate issued for the motor |
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vehicle shall be assigned to a subsequent purchaser of the motor |
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vehicle at retail sale as required by Section 503.063]. |
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(b) On the sale or transfer of a motor vehicle to a person |
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who does not hold a general distinguishing number issued under |
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Chapter 503, the seller shall remove each license plate issued for |
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the motor vehicle. The removed license plates may be transferred to |
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another vehicle titled in the seller's name if the license plates |
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are appropriate for the class of vehicle to which the plates are |
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being transferred and the seller obtains: |
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(1) the department's approval of an application to |
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transfer the license plates; and |
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(2) a new registration insignia for [shall remain |
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with] the motor vehicle. |
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(c) A license plate removed from [(b-1) The purchaser of] a |
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motor vehicle that is not transferred to another motor vehicle must |
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be disposed of in a manner prescribed by the department not later |
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than the 10th day after the date the license plate is removed from |
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the motor vehicle [may request replacement license plates under |
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Section 504.007]. |
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SECTION 3. Not later than October 1, 2025, the Texas |
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Department of Motor Vehicles shall adopt rules as necessary to |
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implement or administer the changes in law made by this Act. |
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SECTION 4. This Act takes effect July 1, 2025, if this Act |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary to take effect on |
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that date, this Act takes effect September 1, 2025. |