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Relating to the administration of the dealer-issued license plates database and to the removal and transfer of license plates, the official text

Shown verbatim: the complete text as captured from the official page posted by the Texas Legislature, fetched 2026-08-29. Where this bill amends existing law, language marked for deletion in the official page appears here in brackets. This is the enrolled version. The official bill page.
S.B. No. 1902

AN ACT

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

with] the motor vehicle.

(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 504.007].

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.

______________________________
______________________________

President of the Senate
Speaker of the House

I hereby certify that S.B. No. 1902 passed the Senate on

March 19, 2025, by the following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 1902 passed the House on

May 23, 2025, by the following vote: Yeas 136, Nays 0, two

present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor
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