SB 1902

relating to the administration of the dealer-issued license plates
database and to the removal and transfer of license plates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 503.0633(f), Transportation Code, as
effective July 1, 2025, is amended to read as follows:
(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, or
has been denied access to the temporary tag database under former
Section 503.0632(f), 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 2.  Section 504.901, Transportation Code, as
effective July 1, 2025, is amended to read as follows:
Sec. 504.901.  REMOVAL AND TRANSFER OF LICENSE PLATES.  (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.  The
dealer shall transfer each removed license plate to a motor vehicle
if that motor vehicle is purchased from the dealer and the license
plates are appropriate for the class of vehicle to which the plates
are being transferred [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].
(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 shall remove each license plate issued for
the motor vehicle.  The removed license plates may be transferred to
another vehicle titled in the seller's name if the license plates
are appropriate for the class of vehicle to which the plates are
being transferred and the seller obtains:
(1)  the department's approval of an application to
transfer the license plates; and
(2)  a new registration insignia for [shall remain
(c)  A license plate removed from [(b-1)  The purchaser of] a
motor vehicle that is not transferred to another motor vehicle must
be disposed of in a manner prescribed by the department not later
than the 10th day after the date the license plate is removed from
the motor vehicle [may request replacement license plates under
SECTION 3.  Not later than October 1, 2025, the Texas
Department of Motor Vehicles shall adopt rules as necessary to
implement or administer the changes in law made by this Act.
SECTION 4.  This Act takes effect July 1, 2025, if this Act
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary to take effect on
that date, this Act takes effect September 1, 2025.