Relating to the administration of the dealer-issued license plates database and to the removal and transfer of license plates.
Summary
SB 1902 updates Texas law governing dealer-issued license plates and the handling of license plates when a motor vehicle is sold or transferred. The bill authorizes the Texas Department of Motor Vehicles to deny a dealer access to the dealer-issued license plates database if the department determines the dealer is fraudulently obtaining plates or fraudulently using the database, including dealers previously denied access to the temporary tag database. A dealer denied access may request a hearing under existing administrative procedures.
The bill also revises the rules for removing and transferring license plates during vehicle sales. When a vehicle is sold or transferred to a dealer, the dealer must remove the plates and may transfer them to another vehicle purchased from the dealer if the plates fit that vehicle class. When a vehicle is sold or transferred to a non-dealer, the seller must remove the plates and may transfer them to another vehicle titled in the seller’s name, subject to department approval and issuance of a new registration insignia. Plates that are not transferred must be disposed of within 10 days in a manner prescribed by the department. The Texas Department of Motor Vehicles must adopt implementing rules by October 1, 2025.
Impact
SB 1902 amends Sections 503.0633 and 504.901 of the Texas Transportation Code and changes the legal framework for dealer-issued plate database access, plate removal, and plate transfer after vehicle sales. It gives the DMV explicit authority to restrict database access for suspected fraud and replaces prior language that tied plate assignment to retail purchasers with a system focused on removal, reuse, and disposal. The bill affects motor vehicle dealers, private sellers, vehicle purchasers, and the Texas Department of Motor Vehicles, and it requires new administrative rules to carry out the changes.
Sentiment
The bill appears to have been broadly supported and noncontroversial. It passed the Senate unanimously and the House overwhelmingly, with no recorded opposition in either chamber. The voting pattern suggests general agreement with the bill’s fraud-prevention and administrative cleanup goals, as well as with the shift toward clearer procedures for plate removal and transfer.
Contention
No major substantive contention is reflected in the available record, and there are no committee transcript excerpts showing debate. The only potentially sensitive issue is the DMV’s expanded ability to deny database access to dealers suspected of fraud, which could raise due-process concerns for affected dealers; however, the bill addresses that by allowing a hearing under existing procedures. Another practical point is the new requirement that unused plates be disposed of within 10 days, which may affect dealers and sellers operationally, but no opposition is shown in the vote history.
Modifies collective Statewide transfer agreement and reverse transfer agreement; establishes New Jersey Transfer Ombudsperson within Office of Secretary of Higher Education.
Modifies collective statewide transfer agreement and reverse transfer agreement; establishes New Jersey Transfer Ombudsperson within Office of Secretary of Higher Education.