Relating to the administration of the dealer-issued license plates database and to the removal and transfer of license plates.

This bill updates Texas rules for handling license plates during vehicle sales. It requires dealers to remove plates when selling vehicles to other dealers and mandates private sellers to get DMV approval before transferring plates to another vehicle they own. The Texas Department of Motor Vehicles can also block dealers from accessing the plate database if fraud is suspected, after providing notice and a hearing opportunity. The bill, effective June 20, 2025, requires the DMV to adopt implementing rules by October 1, 2025. It directly affects auto dealers, vehicle sellers, and the DMV.