Bill Text: TX HB718 | 2023-2024 | 88th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: 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.
Spectrum: Bipartisan Bill
Status: (Passed) 2023-06-12 - Effective on . . . . . . . . . . . . . . . July 1, 2025 [HB718 Detail]
Download: Texas-2023-HB718-Introduced.html
Bill Title: 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.
Spectrum: Bipartisan Bill
Status: (Passed) 2023-06-12 - Effective on . . . . . . . . . . . . . . . July 1, 2025 [HB718 Detail]
Download: Texas-2023-HB718-Introduced.html
88R329 BEE-D | ||
By: Goldman | H.B. No. 718 |
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relating to the issuance of temporary tags and license plates by a | ||
motor vehicle dealer. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. 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 [ |
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the vehicle as provided by Chapter 503. | ||
SECTION 2. Section 501.0236(b), Transportation Code, is | ||
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) [ |
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502.095. | ||
SECTION 3. Section 503.038(a), Transportation Code, is | ||
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; | ||
(12) misuses or allows the misuse of: | ||
(A) a temporary tag authorized under this | ||
chapter; or | ||
(B) a license plate or set of license plates | ||
issued under Section 503.063; or | ||
(13) [ |
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[ |
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adopted under this chapter. | ||
SECTION 4. Section 503.0626(c), Transportation Code, is | ||
amended to read as follows: | ||
(c) Before a dealer's or converter's temporary tag may be | ||
displayed on a vehicle, the dealer or converter must enter into the | ||
database through the Internet information on the vehicle and | ||
information about the dealer or converter as prescribed by the | ||
department. Except as provided by Section 503.0627(f) | ||
[ |
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to any dealer who holds a general distinguishing number issued | ||
under this chapter or who is licensed under Chapter 2301, | ||
Occupations Code, or to any converter licensed under Chapter 2301, | ||
Occupations Code. | ||
SECTION 5. Section 503.0632, Transportation Code, is | ||
redesignated as Section 503.0627, Transportation Code, and amended | ||
to read as follows: | ||
Sec. 503.0627 [ |
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TEMPORARY TAGS AND ACCESS TO TEMPORARY TAG DATABASES. (a) The | ||
department by rule may establish the maximum number of temporary | ||
tags that a dealer or converter may obtain in a calendar year under | ||
Section 503.062 or [ |
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(b) The maximum number of temporary tags that the department | ||
determines a dealer or converter may obtain under this section must | ||
be based on the dealer's or converter's anticipated need for | ||
temporary tags, taking into consideration: | ||
(1) the dealer's or converter's: | ||
(A) time in operation; | ||
(B) sales data; and | ||
(C) expected growth; | ||
(2) expected changes in the dealer's or converter's | ||
market; | ||
(3) temporary conditions that may affect sales by the | ||
dealer or converter; and | ||
(4) any other information the department considers | ||
relevant. | ||
(c) At the request of a dealer or converter, the department | ||
may authorize additional temporary tags of any type for the dealer | ||
or converter if the dealer or converter demonstrates a need for | ||
additional temporary tags resulting from business operations, | ||
including anticipated need. | ||
(d) The department's denial of a request under Subsection | ||
(c) may be overturned if a dealer or converter shows by a | ||
preponderance of the evidence the need for additional temporary | ||
tags. | ||
(e) The department shall monitor the number of temporary | ||
tags obtained by a dealer or converter. | ||
(f) If the department determines that a dealer or converter | ||
is fraudulently obtaining temporary tags from the temporary tag | ||
database, the department may, after giving notice electronically | ||
and by certified mail to the dealer or converter, deny access to a | ||
temporary tag database to the dealer or converter. A dealer or | ||
converter denied access to a temporary tag database under this | ||
subsection may request a hearing on the denial as provided by | ||
Subchapter O, Chapter 2301, Occupations Code. | ||
SECTION 6. Section 503.063, Transportation Code, is amended | ||
to read as follows: | ||
Sec. 503.063. DEALER-ISSUED LICENSE PLATES FOR BUYER | ||
[ |
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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 [ |
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(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 [ |
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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 [ |
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[ |
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(c) At the time of issuance of a license plate or set of | ||
plates under this section, the [ |
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[ |
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[ |
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or set of license plates in compliance with department rules | ||
regarding the placement of license plates [ |
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(d) The dealer is responsible for the safekeeping and | ||
distribution of each license plate or set of license plates | ||
[ |
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(e) A dealer shall obtain license plates and sets of license | ||
plates from the [ |
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department rules [ |
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[ |
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[ |
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[ |
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[ |
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[ |
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(f) The department shall ensure that a dealer may obtain | ||
[ |
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of license plates [ |
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unreasonable disruption of business due to the unavailability of | ||
license plates [ |
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shall establish an expedited procedure to allow a dealer [ |
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license plates [ |
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remain in business [ |
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(g) For each license plate or set of plates issued to a buyer | ||
under this section, the [ |
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charge the buyer a registration fee [ |
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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 [ |
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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 [ |
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subsection: | ||
(1) is subject to the provisions of Section [ |
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503.0631 [ |
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(2) is not required to charge the registration fee | ||
under Subsection (g). | ||
(i) A vehicle may be issued and display a license plate or | ||
set of license plates under this section [ |
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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. | ||
(j) A vehicle may be issued and display a license plate or | ||
set of license plates under this section [ |
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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 7. The heading to Section 503.0631, Transportation | ||
Code, is amended to read as follows: | ||
Sec. 503.0631. [ |
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DEALER-ISSUED LICENSE PLATES. | ||
SECTION 8. 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 [ |
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whom dealers issue a license plate or set of license plates under | ||
Section 503.063 [ |
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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 [ |
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person to whom the license plate [ |
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(c) Except as provided by Subsection (d), before a license | ||
plate or set of license plates issued under Section 503.063 | ||
[ |
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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 [ |
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(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) [ |
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(c-1) Except as provided by Section 503.0633(f) | ||
[ |
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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). [ |
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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 9. 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 Section 503.063. | ||
(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 or 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 10. 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 a | ||
vehicle that displays a dealer-issued license plate or set of | ||
license plates in violation of this chapter or Chapter 502. | ||
(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 11. Section 503.068(c), Transportation Code, is | ||
amended to read as follows: | ||
(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, a [ |
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temporary tag issued under Section 503.061 or [ |
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license plate issued by the dealer under Section 503.063. | ||
SECTION 12. The changes in law made by this Act apply only | ||
to an offense committed on or after March 1, 2025. An offense | ||
committed before March 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 March 1, 2025, if any element of the | ||
offense was committed before that date. | ||
SECTION 13. Not later than March 1, 2024, the Texas | ||
Department of Motor Vehicles shall: | ||
(1) adopt rules necessary to implement the changes in | ||
law made by this Act; and | ||
(2) create the database described by Section 503.0631, | ||
Transportation Code, as amended by this Act. | ||
SECTION 14. (a) Except as otherwise provided by Subsection | ||
(b) of this section, this Act takes effect March 1, 2025. | ||
(b) Section 13 of this Act takes effect September 1, 2023. |