TITLE 43. TRANSPORTATION

PART 10. TEXAS DEPARTMENT OF MOTOR VEHICLES

CHAPTER 215. MOTOR VEHICLE DISTRIBUTION

INTRODUCTION. The Texas Department of Motor Vehicles (department) adopts amendments to 43 Texas Administrative Code (TAC) Chapter 215, Motor Vehicle Distribution. Specifically, the department adopts amendments to Subchapter A, General Provisions, §215.2 and the repeal of §215.1; adopts amendments to Subchapter B, Licenses, Generally, §§215.82 - 215.84, 215.89, and 215.91 and the repeal of §215.81; adopts amendments to Subchapter C, Franchised Dealers, Manufacturers, Distributors, and Converters, §§215.104, 215.110, 215.113, 215.115, 215.120, and 215.121; adopts amendments to Subchapter D, General Distinguishing Numbers and In-Transit Licenses, §§215.132 - 215.134, 215.140, 215.141, 215.144, 215.145, 215.152, 215.154, 215.155, and 215.158; adopts new §215.153 and §215.159, and repeals §215.131; adopts amendments to Subchapter E, Lessors and Lease Facilitators, §§215.175, 215.177, and 215.181 and repeals §215.171; and adopts amendments to Subchapter F, Advertising, §§215.242, 215.244, 215.246, and 215.270 and repeals §§215.241, 215.243, and 215.269.

The department adopts §§215.2, 215.82, 215.89, 215.91, 215.104, 215.110, 215.113, 215.115, 215.132, 215.140, 215.144, 215.145, 215.152, 215.154, 215.155, 215.158, 215.177, 215.181, 215.242, and 215.246; adopts new §215.153; and adopts the repeal of §§215.1, 215.81, 215.131, 215.171, 215.241, 215.243, and 215.269 without changes to the proposed text as published in the April 24, 2026, issue of the Texas Register (51 TexReg 2638). The text of these rules will not be republished. The department adopts new §215.159, and amendments to §§215.83, 215.84, 215.120, 215.121, 215.133, 215.134, 215.141, 215.175, 215.244, and 215.270, with changes to the proposed text as published in the April 24, 2026, issue of the Texas Register (51 TexReg 2638). The department withdraws proposed new §215.107, withdraws the proposed amendments to §§215.85, 215.105, 215.108, 215.114, 215.137, 215.157, 215.264, and 215.500, and withdraws the repeal of §215.101. Accordingly, the department does not adopt §215.107 and retains the existing rule text for remaining affected sections. The text of §§215.83, 215.84, 215.120, 215.121, 215.133, 215.134, 215.141, 215.159, 215.175, 215.244 and 215.270 will be republished.

REASONED JUSTIFICATION. The department is reviewing Chapter 215 in accordance with Government Code, §2001.039, which requires state agencies to periodically review existing rules and determine whether the reasons for initially adopting the rules continue to exist. Notice of the department's intent to review and readopt Chapter 215 is published elsewhere in this issue of the Texas Register. As part of that review, the department determined that certain provisions should be amended, repealed, or replaced to improve clarity and consistency, eliminate unnecessary or duplicative language, incorporate statutory changes, and ensure the rules continue to effectively implement and administer applicable law. The department therefore adopts the amendments, new sections, and repeals described in the following paragraphs.

Subchapter A. General Provisions

§215.1

This section describing the purpose and scope of the chapter is repealed because the section is unnecessary, as relevant statutory references are incorporated into the applicable rules throughout the chapter.

§215.2

Adopted amendments to §215.2(a) add a reference to Transportation Code, Chapter 730, the Motor Vehicle Records Disclosure Act, to clarify that the definitions in Chapter 730 apply to Chapter 215 because the chapter includes rules implementing and enforcing that Act. The amendments also update related punctuation. An amendment to §215.2(b)(7) clarifies that the definition of standard license plate does not include a dealer's temporary license plate issued under Transportation Code, §503.062. A dealer's temporary license plate may only be used for the purposes authorized by Transportation Code, §503.062, whereas a dealer's standard license plate authorized by Transportation Code, §503.061 may be used for a broader range of authorized purposes.

Subchapter B. Licenses, Generally

§215.81

This section describing the purpose and scope of the chapter is repealed because it is unnecessary, as relevant statutory references are incorporated into the applicable rules throughout the chapter.

§215.82

Adopted amendments to §215.82 add "and Dealer's Temporary" to the title of the section and add "a dealer's temporary license plate" to the rule text to include this license plate type among the license plates for which a dealer may receive a replacement license plate or sticker at no charge if the dealer did not receive the original license plate ordered and requests a replacement within 45 days after the department mails the license plate in the department-designated system. Adopted amendments also delete unnecessary references to specific types of license holders eligible to receive a standard license plate because the phrase "standard license plate" is already defined in §215.2(b)(7) of this title (relating to Definitions; Conformity and Statutory Requirements) as a license plate issued to a license holder. Additional adopted amendments delete "standard" from the description of the license plate in §215.82(1) and (2) because those provisions apply to both standard license plates and dealer's temporary license plates. These amendments allow a dealer to receive a replacement at no charge if a dealer's temporary license plate is lost in the mail and the dealer promptly requests a replacement.

§215.83

Adopted amendments to §215.83 create new paragraph §215.83(a) to document existing requirements for a new applicant to register for an account in the department-designated licensing system through the department's website. These amendments require an applicant to designate an account administrator, provide the name and email address for that person, provide the business telephone number, name, business type, and social security number or employer identification number, as applicable, and specify that the applicant's licensing account administrator must be an owner, officer, manager, or bona fide employee. These amendments reflect existing requirements for establishing an account that an applicant may use to submit a license application. The remaining paragraphs are renumbered to accommodate new §215.83(a). At adoption, the department made a conforming change to a relettered reference in §215.83(l).

§215.84

At adoption, the department withdrew proposed amendments that would have deleted §215.84(a) and relettered the remaining subsections, in response to public comments that the explanation §215.84(a) provided was helpful for readers. The adopted amendment to §215.84(c) makes a minor wording change without changing meaning.

§215.89

Adopted amendments to §215.89(a) delete an unnecessary phrase to streamline the subsection language. An amendment to §215.89(b)(2) updates, for ease of reference, a citation to the criminal offense guidelines for the motor vehicle industry in 43 TAC Chapter 211. An amendment to §215.89(b)(5) adds a modifying phrase identifying consumer harm as a factor that the department may consider when evaluating whether a license holder or applicant is unfit to hold a license due to insolvency or failure to obtain or maintain financial resources sufficient to meet financial obligations. Consideration of consumer harm is important because a license holder may reorganize finances due to a business setback but may not be considered unfit if no consumer harm resulted. An amendment to §215.89(b)(8) deletes an unnecessary introductory verb and connector and updates a citation to reflect the renumbering of provisions in Chapter 211.

§215.91

Occupations Code, §55.004(b-1), as amended by Senate Bill 1818, 89th Texas Legislature, Regular Session, requires all state licensing agencies, including the department, to issue a provisional license to military service members, military veterans, and military spouses while the agency processes a license application. Adopted amendments to §215.91(b) clarify the application process for a military service member, military spouse, or military veteran to obtain a provisional license. These clarifications are necessary for the department to identify and process these applications on an expedited basis as required by Occupations Code, §55.0041, as amended by House Bill 5629, 89th Legislature, Regular Session.

Adopted amendments to §215.91(b)(1) align the rule with Occupations Code, §55.004, as amended by Senate Bill 1818, to require licensing agencies to issue a provisional license while reviewing the application of a military service member, military spouse, or military veteran who is currently licensed and in good standing in another state or who was licensed in Texas within the prior five years. The amendments establish streamlined application requirements for a provisional license, as specified by Occupations Code, §§55.004 and 55.0041, and clarify that a military service member, military spouse, or military veteran may apply for a provisional license by downloading and completing the application form from the department website or by contacting the department. The amendments also require the applicant to submit the completed provisional license application to the department at the email address designated in the application form, delete the requirement to submit the more comprehensive online application specified in §215.83, and reletter the required attachments that must accompany the provisional license application. The amendments add new §215.91(b)(1)(C) and amend relettered §215.91(b)(1)(A) to clarify and separate documentation requirements applicable to military veterans from documentation required of active-duty military personnel and military spouses. Amendments to §215.91(b)(1)(D) clarify that the affidavit required by Occupations Code, §55.0041(b)(3), for applicants previously licensed in another state applies to military veterans as well as military service members and military spouses.

Adopted amendments to §215.91(b)(2) add the phrase "provisional license" to describe the application type and align the rule with Occupations Code, §55.004. Amendments to §215.91(b)(2)(A) add a reference to military veterans and update related punctuation and conjunctions. Amendments to §215.91(b)(2)(B) change a verb to "confirm" for consistency with §215.91(b)(2)(C). Amendments to §215.91(b)(2)(C) provide that, if the department confirms the information required by subparagraphs (A) and (B), the department will notify the applicant to submit a sufficient application as described in §215.83 at the time the department issues the provisional license, consistent with Occupations Code, §55.0041(b-1).

Adopted amendments to §215.91(b)(3) clarify that the department will issue a license within 10 days after receiving a sufficient application, or notify the applicant why a license cannot currently be issued, as required by Occupations Code, §55.0041(b-1), when the applicant holds a provisional license, is licensed in good standing in another state with substantially similar licensing requirements, or was licensed in good standing in Texas during the preceding five years. Another amendment to §215.91(b)(3) moves the final sentence to new §215.91(c) and reletters current §215.91(c) as §215.91(d) to improve readability. These amendments streamline the process for military service members, military spouses, and military veterans to apply for and obtain a provisional license consistent with Occupations Code, Chapter 55, without requiring substantial licensing-system modifications.

Subchapter C. Franchised Dealers, Manufacturers, Distributors, and Converters

§215.104

Adopted amendments to §215.104(a) and (b) modernize and simplify text to improve readability without changing meaning. An amendment to §215.104(a)(2) removes a typographical error. Amendments to §215.104(c) add a requirement for a franchised dealer to file a license amendment application within 10 days if the person responsible for the dealer's business activities changes due to the appointment of a receiver or the filing of bankruptcy and make related changes in punctuation and conjunction placement. These amendments help ensure that the appropriate representative receives department licensing and enforcement notices and may act within the time limits established by statute and rule. Amendments to §215.104(d) modernize and simplify text to improve readability without changing meaning.

§215.110

An adopted amendment to §215.110(b) clarifies that the information described is located in subsection (a), rather than elsewhere in the section, to avoid potential confusion.

§215.113

Adopted amendments to §215.113(c) update the subchapter designation in 43 TAC Chapter 224 and delete "License" from a referenced section title to correct the title and subchapter reference.

§215.115

Adopted amendments to §215.115(e) add "if applicable" and related punctuation because certain records identified in the subsection may not be relevant to every license holder's business.

§215.120

At adoption, the department revised the title of §215.120 to "Standard License Plates for Manufacturers, Distributors, and Converters" to clarify the scope of the section. Adopted amendments to §215.120(d) substitute "license holder" for "manufacturer, distributor, or converter" where that term clearly refers to a manufacturer, distributor, or converter and simplify the rule text without changing meaning. An amendment to §215.120(d)(2) substitutes "secured" for "affixed" for consistency in terminology. Amendments to §215.120(g) clarify that requests for additional standard license plates and supporting business justifications are submitted by manufacturers, distributors, and converters and remove language that could create uncertainty regarding the scope of the subsection. The amendments to §215.120(g) prevent any confusion or conflict with 43 TAC §215.139, relating to Dealer's Standard License Plate Allocation. An amendment to §215.120(g)(1) clarifies that the department may consider the number of vehicles assembled or modified during the prior 12 months at facilities in or serving the Texas market when evaluating requests for additional standard license plates. These amendments clarify the information the department may consider and address common issues raised by manufacturers requesting additional standard license plates.

At adoption, the department did not adopt the proposed amendments to §215.120(a) and (b). Those subsections retain the existing references to manufacturer and converter standard license plates. The department determined that retaining the existing terminology more clearly communicates the scope of the section and avoids potential confusion regarding the use of standard license plates. The department also revised §215.120(g) and (h) at adoption to expressly identify manufacturers, distributors, and converters as the persons subject to those provisions and to conform terminology throughout the section and to correct a capitalization error.

§215.121

The department received stakeholder comments that the proposed changes, which would have deleted §215.121(a), removed citations to §215.121(a), and relettered the remaining subsection, were unnecessary and removed language that was helpful to readers. The department therefore withdrew the proposed deletion of §215.121(a) and the proposed amendments to §215.121(b) that would have removed cross-references to §215.121(a) and would have made changes to improve readability in the absence of §215.121(a).

Adopted amendments to §215.121(b)(10) update references to relevant Transportation Code chapters that may result in sanctions if violated. An adopted amendment to §215.121(b)(11) updates a citation to the criminal offense guidelines in 43 TAC Chapter 211.

Adopted amendments add new §215.121(b)(19) to enforce Transportation Code, Chapter 730, the Motor Vehicle Records Disclosure Act, by establishing a sanction for violations of the Act by a manufacturer, distributor, converter, franchised dealer, or an employee or agent of those persons. The amendments also make related punctuation and conjunction changes. These license holders and their employees and agents have access to motor vehicle records protected by the Motor Vehicle Records Disclosure Act, and unauthorized disclosure may result in significant consumer harm.

Subchapter D. General Distinguishing Numbers and In-Transit Licenses

§215.131

This section describing the purpose and scope of the chapter is repealed because it is unnecessary, as relevant statutory references are incorporated into the applicable rules throughout the chapter.

§215.132

Adopted amendments update definitions consistent with other adopted changes in Subchapter D. Amendments delete the definition of "barrier" in §215.132(1), because adopted amendments to §215.140 remove that term, and renumber the remaining definitions accordingly. An amendment to renumbered §215.132(1) deletes the final sentence referencing a buyer's provisional license plate to align with the new definition of "buyer's provisional license plate" in renumbered §215.132(2). Amendments to renumbered §215.132(2) define a buyer's provisional license plate as a license plate a dealer may use when a general issue license plate for the vehicle or vehicle type is not available in the dealer's inventory, an exempt license plate application is pending department approval, or a retail purchaser requires a commercial fleet specific-use license plate that will be obtained through a department system. These amendments clarify the authorized uses of buyer's provisional license plates and facilitate retail vehicle transactions involving those circumstances.

§215.133

The department received public comments that the proposed amendments, which would have deleted §215.133(a) and (b) and relettered the remaining subsections, made the text less clear for readers. The department therefore withdrew these proposed amendments at adoption.

Adopted amendments to §215.133(c) add "license" to clarify the application type referenced and clarify that a dealer or wholesale motor vehicle auction reapplying for a GDN after the GDN expires or is closed must enter or verify current information, provide documentation necessary to satisfy new or revised requirements, and pay all required fees, including any outstanding civil penalties owed under a final order. An amendment to §215.133(d) updates a citation to Chapter 211. Amendments also delete §215.133(i) because that provision unnecessarily duplicates statutory language, and reletter the remaining subsections accordingly. Additional amendments delete an unnecessary reference to former §215.133(i) in relettered §215.133(i).

§215.134

The department received comments from stakeholders that proposed amendments, which would have deleted §215.134(a) and relettered the remaining subsections, would have made the rule text less clear for readers. Therefore, the department did not adopt these proposed amendments. However, the department adopted an amendment to §215.134(b) to add the word "license" for clarity and consistency. The department also adopted an amendment to §215.134(f), which updates a citation to Chapter 211.

§215.140

Adopted amendments to §215.140(a)(3)(A), §215.140(a)(4)(A)(i), and §215.140(b)(3)(A) add the term "legible" to clarify sign-lettering requirements and ensure that the public and the department can readily identify the GDN holder. Amendments to §215.140(a)(3)(B), §215.140(a)(4)(A)(ii), and §215.140(b)(3)(B) provide additional flexibility for dealer and auction signage by recognizing signs permanently affixed or etched on an exterior window, wall, or door as an alternative to signs permanently installed in the ground. Amendments to §215.140(a)(5)(F) add "licensed" to describe a dealer's physical location and authorize the department to mail or deliver license plates to another physical location identified in the dealer's license record and approved by the department. This change provides operational flexibility for dealers with multiple locations and complements new §215.159 regarding license plate storage.

Amendments to §215.140(a)(6)(E) delete unnecessary license plate descriptors to improve readability without changing meaning. Amendments to §215.140(a)(11)(B)(iv) and (vii) replace the requirement for physical barriers separating display space with a requirement for permanent signage identifying a dealer's reserved display area. The department received feedback that the prior barrier requirement was difficult to implement and maintain in shared locations. The adopted amendments provide a simpler and less costly method of identifying dealer inventory areas while continuing to allow the department and the public to determine which display space belongs to a particular dealer.

§215.141

The department received stakeholder comments that the proposed changes, which would have deleted §215.141(a), removed citations to §215.141(a), and relettered the remaining subsections, were unnecessary and removed language that was helpful to readers. The department therefore withdrew the proposed deletion of §215.141(a) and the proposed amendments to §215.141(b) that would have removed cross-references to §215.141(a) and would have made changes to improve readability in the absence of §215.141(a).

The department adopted amendments to §215.141(b)(16) and (21) update references to Transportation Code chapters to include relevant chapters and remove references to chapters a license holder could not violate in this context. An amendment to §215.141(b)(17) updates a citation to Chapter 211. Amendments to §215.141(b)(26), (28), and (34) delete outdated references that are no longer necessary because of changes in law and the passage of time. Amendments add new §215.141(b)(36) to enforce Transportation Code, Chapter 730, the Motor Vehicle Records Disclosure Act, by providing a sanction for violations committed by a GDN holder or its employee or agent. These license holders and their employees and agents have access to protected motor vehicle record information, and unauthorized disclosure may result in significant consumer harm. At adoption, the department retained the parenthetical following the citation to Transportation Code, §501.100 in §215.141(b)(31). The department determined that retaining the parenthetical improves clarity and is consistent with other statutory citations within the rule.

Amendments also add new §§215.141(b)(37) - (39) to specify violations involving issuance and assignment of license plates. These provisions address issuance of an incorrect license plate type, failure to assign a secured license plate to the vehicle in the department-designated system, and voiding and reissuing the same license plate to extend a title or registration filing deadline. Department investigations of complaints received after elimination of temporary tags identified conduct of this nature, which may lead to unnecessary law-enforcement stops and delay proper titling and registration.

§215.144

Adopted amendments to §215.144(e)(8)(L) clarify that a dealer is not required to copy a purchaser's photo identification document when doing so would violate federal law. Amendments to §215.144(e)(8)(M) require that the odometer disclosure statement be properly executed by the seller and acknowledged by the purchaser and delete the phrase "signed by the buyer" for consistency with §217.4(d)(2) of this title. Amendments to §215.144(e)(8)(M) and (N) modify punctuation and conjunctions to accommodate new §215.144(e)(8)(O), which requires retention of the dealer's copy of the buyer's license plate receipt. This requirement helps ensure that a complete transaction record is available if the department investigates a complaint. An amendment to §215.144(l)(1) removes redundant language, and an amendment to §215.144(l)(2) corrects the title of the referenced section.

§215.145

Adopted amendments to §215.145(d)(1) and (e)(1) simplify terminology by replacing longer references with the term "amendment application." Amendments also add new subsection (h), requiring a dealer to file a license amendment application within 10 days when responsibility for management of the business changes because of appointment of a receiver or a bankruptcy filing. These amendments help ensure that the appropriate representative receives department notices and may act on behalf of the license holder within applicable statutory and regulatory deadlines.

§215.152

An adopted amendment to §215.152(e) revises wording to improve readability without changing meaning. An adopted amendment to §215.152(h) deletes an extraneous word. Adopted amendments to §215.152(i)(6) require a delivery service to notify the department that a license plate shipment is undeliverable before a dealer becomes ineligible to receive a quarterly allocation delivered to the licensed location. Amendments add new §215.152(i)(8), which makes an applicant or dealer ineligible for a quarterly allocation delivered to a licensed location if the person has filed a change of address and the department has not yet approved the proposed location. Related punctuation and conjunction changes accommodate that addition.

Amendments to §215.152(l) and (m) replace the term "general issue plates" with "buyer's license plates" because buyer's license plates include more than general issue plates, and replace "buyer" with the possessive form "buyer's" for consistency. An amendment to §215.152(n) replaces "receive" with "request" for consistency in terminology. An amendment to §215.152(o)(1) substitutes "dealer's" for "requestor's" because dealer license plate activity is a relevant factor the department may consider when evaluating an allocation request. An amendment to §215.152(p) corrects a cross-reference.

§215.153

Adopted new §215.153 describes a dealer's responsibilities when issuing a buyer's provisional license plate, a type of buyer's license plate used when another appropriate license plate is not available or cannot yet be assigned at the time of sale. The rule facilitates retail transactions involving depleted inventories of general issue license plates, pending exempt license plate applications, and commercial fleet vehicles.

Section 215.153(a) provides that a dealer is responsible for managing buyer's provisional license plate inventory within the dealer's allocation and authorizes the department to require supporting documentation for requests involving those plates. Section 215.153(b) requires issuance of a buyer's provisional license plate when a suitable general issue plate is unavailable and the purchaser does not have an eligible plate available for reassignment. Section 215.153(c) authorizes use of a buyer's provisional license plate while an exempt plate application is pending. Section 215.153(d) addresses vehicles eligible for commercial fleet license plates.

Section 215.153(e) requires a dealer, except in commercial fleet transactions, to promptly obtain and assign the appropriate permanent plate. Section 215.153(f) establishes expiration requirements for buyer's provisional license plates. Section 215.153(g) requires destruction of an expired buyer's provisional license plate consistent with §215.158. Collectively, these provisions facilitate vehicle sales while maintaining accountability and reducing opportunities for license plate fraud.

§215.154

Adopted amendments to the graphic in §215.154(b) increase initial allocations of dealer's temporary license plates for GDN holders that sell trailers and semitrailers and for wholesale motor vehicle dealers that also hold a wholesale auction GDN. The department received a significant number of requests for additional dealer's temporary license plates from these license holders during implementation of the dealer license plate program, indicating that larger initial allocations are warranted. The amendments increase the allocation for trailer and semitrailer dealers from five to 15 plates and establish a new allocation category of 40 plates for wholesale motor vehicle dealers that also operate wholesale auctions.

Amendments also delete §215.154(c) and reletter the remaining subsections and graphic title because dealers licensed on July 1, 2025, have already received the initial allocations contemplated by that subsection. Amendments to relettered §215.154(f) require proof of the number of vehicles transported during the prior 12-month period, if applicable, when requesting a waiver for additional dealer's temporary license plates. This information assists the director in evaluating requests and minimizing unnecessary accumulation of unassigned license plates.

§215.155

Adopted amendments to §215.155(b) delete the term "general issue" because buyer's license plates include provisional license plates. Amendments to §215.155(e) delete language requiring registration fees to be remitted with the title transfer application because those transactions are processed separately.

§215.158

Adopted amendments to §215.158 delete the phrase "buyer's license plate or buyer's temporary" to clarify that loss, theft, or destruction of any license plate must be reported to the department.

§215.159

Adopted new §215.159 establishes options and requirements for a dealer to store and manage license plate inventory away from the licensed location, including at centralized storage locations used by multiple dealers. The rule provides operational flexibility while maintaining appropriate safeguards for license plate security and department oversight.

Section 215.159(a) requires a dealer to disclose the address of a license plate storage location and certify compliance with the rule. Section 215.159(b)(1) provides that a licensed location used for plate storage must comply with the premises requirements in §215.140. Section 215.159(b)(2) establishes requirements applicable to a storage location that is not itself a licensed location, including requirements concerning the physical structure, equipment, inventory organization, accessibility, posted business hours, staffing, security, and permissible locations.

These requirements ensure that license plate inventory remains secure, that dealers can access the department's systems and communicate with the department, and that the department may effectively monitor compliance with Transportation Code, §§503.063, 503.0631, and 503.0633. The rule also accommodates the operational needs of dealers while reducing opportunities for theft, diversion, or misuse of license plates.

Section 215.159(c) informs dealers that the department may inspect a license plate storage location before approving the location and during the license term to monitor compliance with applicable statutes and rules.

At adoption, the department revised the language of §215.159(a) and (b) to allow multiple dealers to use the same storage location, and to exempt storage locations from the limitation under §215.140(a)(7) that only four dealers can use the same location. The department made these revisions in response to feedback from independent dealers that have separate GDN licenses but share common ownership and preferred to store plates in one centralized location. These revisions provide additional flexibility for dealers and could reduce overhead costs for dealers that are able to share a common location.

Subchapter E. Lessors and Lease Facilitators

§215.171

This section describing the purpose and scope of the chapter is repealed because it is unnecessary, as relevant statutory references are incorporated into the applicable rules throughout the chapter.

§215.175

The department received stakeholder comments that the proposed changes, which would have deleted §215.175(a), removed citations to §215.175(a), and relettered the remaining subsections, were unnecessary and removed language that was helpful to readers. The department therefore withdrew the proposed changes to §215.175(a) and the proposed amendments to §215.175(b) that would have removed cross-references to §215.175(a) and would have made changes to improve readability in the absence of §215.175(a). At adoption, the department also corrected a reference in §215.175(b)(1) to reflect the full title of the referenced section

Adopted amendments to §215.175(b)(10) updates a reference to the applicable criminal offense guidelines in Chapter 211 of this title. Adopted amendments add new §215.175(b)(14) to enforce Transportation Code, Chapter 730, the Motor Vehicle Records Disclosure Act, by providing a sanction for violations committed by a vehicle lessor, vehicle lease facilitator, or their employee or agent. The amendments also make related punctuation and conjunction changes. Vehicle lessors, vehicle lease facilitators, and their employees and agents have access to motor vehicle records protected by the Motor Vehicle Records Disclosure Act, and unauthorized disclosure may result in significant consumer harm.

§215.177

An adopted amendment to §215.177(a)(2) adds the term "legible" to clarify sign-lettering requirements and ensure that the public and the department can readily identify the license holder.

§215.181

Adopted amendments to §215.181 revise a sentence to modernize the rule and improve readability without changing meaning.

Subchapter F. Advertising

§215.241

This section describing the purpose and scope of the chapter is repealed because it is unnecessary, as relevant statutory references are incorporated into the applicable rules throughout the chapter.

§215.242

Adopted amendments to §215.242 delete unnecessary phrases to improve readability without changing meaning.

§215.243

This section is repealed because it is unnecessary and redundant to treat a violation of an advertising rule as a prima facie violation of Occupations Code, Chapter 2301. Occupations Code, §2301.263 provides that a license issued under Chapter 2301 is subject to both Chapter 2301 and applicable board rules. Accordingly, treating an advertising rule violation as a separate prima facie violation of Chapter 2301 is unnecessary because the rule merely restates existing statutory authority.

§215.244

Adopted amendments to §215.244 add and modify definitions used in the advertising rules. An amendment to §215.244(1)(A)(ii) adds business cards to the list of items that constitute an advertisement. Amendments add §215.244(1)(A)(vi) and (vii) to modernize the definition of advertisement by expressly including statements or representations displayed on internet websites, social media platforms, other digital applications or platforms, and electronic communications such as email. Electronic forms of advertising have evolved significantly, and these amendments update the rule to reflect the most common methods of digital advertising. Additional amendments modify punctuation and conjunctions to accommodate new §215.244(1)(A)(vi) and (vii). At adoption, an amendment to §215.244(12) was altered slightly for consistency with the wording of other definitions in the section without changing meaning.

At adoption, the department received a public comment in opposition to a proposed amendment to §215.244 that would have created a new definition of the term "cure" for purposes of Occupations Code, §2301.203, which requires the department to provide a license holder an opportunity to cure an alleged advertising violation before issuing a notice of violation and recommended sanction. In response to the comments, the department did not adopt the proposed new definition of "cure," the proposed renumbering of other subparagraphs to accommodate the new definition, or the proposed amendment to the definition of "subsequent violation" in §215.244(17).

§215.246

Adopted amendments to §215.246 delete a redundant sentence because the requirement that an advertisement not be false, deceptive, or misleading is already provided by §215.242 of this title.

§215.269

This section is repealed because procedures governing the determination of violations under department rules have been moved to 43 TAC Chapter 224. The section is therefore redundant and no longer necessary.

§215.270

Adopted amendments to §215.270(a)(1) streamline rule language and modernize methods by which the department may communicate with license holders by expressly including email, while retaining the certified mail requirement.

In response to public comments, the department did not adopt proposed amendments that would have implemented revised definitions of "cure" and "subsequent violation" that were proposed but not adopted in §215.244.

Additional adopted amendments delete §215.270(c) and reletter the remaining subsection accordingly because publication of a retraction notice in a local newspaper is no longer an effective or efficient method of informing the public or curing an alleged advertising violation.

CHANGES AT ADOPTION. The department received comments on proposed §§215.84, 215.85, 215.101, 215.105, 215.107, 215.108, 215.114, 215.120, 215.121(a), 215.133(a)-(b), 215.134, 215.137, 215.141, 215.157, 215.175(a), 215.244, 215.270, 215.264, and 215.500. After consideration of the comments, the department modified §§215.84, 215.120, 215.121, 215.133, 215.134, 215.141, 215.175, 215.244, and 215.270 at adoption and determined to withdraw proposed new §215.107 and withdraw the proposed revisions to §§215.85, 215.101, 215.105, 215.108, 215.114, 215.137, 215.157, 215.264, and 215.500. Additionally, after further review of the proposal and operational considerations relating to license plate storage, the department revised the language of §215.159 at adoption.

The department received comments from stakeholders requesting reinstatement of rule language the department had proposed for amendment or repeal because it was identified during the review by the Texas Regulatory Efficiency Office as duplicative of statute, unnecessary, in need of streamlining, or in need of modernization in §§215.84(a), 215.85, 215.101, 215.105, 215.108, 215.114, 215.121(a), 215.133(a)-(b), 215.134, 215.137, 215.141, 215.157, 215.175(a), and 215.500. In response, the department withdrew all proposed revisions to §§215.85, 215.101, 215.105, 215.108, 215.114, 215.137, 215.157, and 215.500, and modified the proposed amendments in §§215.84, 215.121(a), 215.133(a)-(b), 215.134(a), 215.141, and 215.175(a) to remove the amendments identified by stakeholders as unnecessary or unhelpful.

The department also received comments regarding proposed new §215.107, which the department had proposed to require manufacturers and distributors to file a license amendment to transfer a line-make from one manufacturer or distributor to another. After consideration of those comments and further review of the proposal, the department determined not to adopt new §215.107 and therefore withdraws the proposed section.

The department revised §215.120 at adoption in response to comments regarding standard license plates. At adoption, the department revised the title of §215.120 to "Standard License Plates for Manufacturers, Distributors, and Converters" to clarify the scope of the section. The department did not adopt the proposed amendments to §215.120(a) and (b) and retained the existing references to manufacturer and converter standard license plates. The department determined that retaining the existing terminology more clearly communicates the scope of the section and avoids potential confusion regarding the use of standard license plates. The department also revised §215.120(g) and (h) to expressly identify manufacturers, distributors, and converters as the persons subject to those provisions and to conform terminology throughout the section.

The department revised the amendments to §215.159(a) and (b) at adoption to allow multiple dealers to use the same license plate storage location, and to exempt storage locations from the limitation under §215.140(a)(7) that only four dealers can use the same location. The department made these revisions in response to feedback from independent dealers who requested to be able to store license plates in one centralized location, to reduce costs by allowing the dealers to share the costs of a common storage location.

The department also revised §215.141(b)(31) at adoption to retain the parenthetical following Transportation Code, §501.100 for clarity and consistency with other statutory citations appearing in the rule.

After consideration of comments received regarding the department's proposed definitions interpreting Occupations Code, §2301.203, the department revised amendments to §215.244 and §215.270 at adoption to remove the proposed new definitions of "cure" and "subsequent violation," and to remove proposed new text that referred to those proposed defined terms. The department also corrected wording in §215.244(12) at adoption so that it is consistent with other definitions in the section without changing its meaning.

After consideration of comments received regarding lease advertising disclosures, the department determined not to adopt the proposed amendments to §215.264. The department concluded that the existing provisions continue to provide an effective framework for compliance and therefore retained the current rule text.

Except as described in this section, the department adopts the rules as proposed. The department also made nonsubstantive grammatical, formatting, and conforming revisions throughout the adoption text to improve clarity and consistency.

SUMMARY OF COMMENTS.

The department received three timely written comments on the proposal from the Texas Automobile Dealers Association (TADA), the Texas Independent Automobile Dealers Association (TIADA), and the Texas Recreational Vehicle Association (TRVA).

Comment. TADA and TIADA commented in opposition to adoption of the proposed rule amendments in §§215.84(a), 215.85, 215.101, 215.105, 215.108, 215.114, 215.121(a), 215.133(a)-(b), 215.134(a), 215.137, 215.141, 215.157, and 215.175(a), which were identified as part of the Texas Regulatory Efficiency Office's review of the department's rules. The commenters asserted that the amendments are unnecessary and would create confusion or add unnecessary complexity and could disrupt established reliance on existing rule language without addressing a demonstrated need.

Response. The department agrees. As part of the Texas Regulatory Efficiency Office's review, the department identified rules that contained unnecessary or unenforceable language, required modernization, or duplicated statutory provisions. Throughout the review, Texas Regulatory Efficiency Office staff emphasized that it was important for the department to consider stakeholder feedback as part of the process. In light of the public comments indicating that stakeholders find helpful the language that was proposed for deletion, the department did not adopt the proposed changes to these sections that resulted from the Texas Regulatory Efficiency Office review.

Comment. TADA opposed adoption of the proposed amendments to §215.107 because manufacturers and distributors are aware of their licensing requirements. TADA stated that the rule should not include information required for a license amendment application because it does not need to be in a rule and the department may want to change it in the future. TADA also stated that the discussion of manufacturer licensing requirements in the department's eLicensing User Guide eliminates the need for the department to make a rule.

Response. The department disagrees. Texas Government Code §2001.004 requires state agencies to adopt rules reflecting all formal and informal procedures, including license application requirements. Under Government Code, Chapter 2001, such requirements must be adopted through notice-and-comment rulemaking or are subject to being voidable. While Occupations Code, Chapter 2301 establishes the general requirement for licensing, it does not provide the level of procedural detail necessary to ensure consistent implementation and enforcement. Proposed new §215.107 clarified how those statutory requirements apply in the context of a line-make transfer, including what information must be provided and how responsibilities are to be identified. Including this information in a manufacturer license application form or the eLicensing User Guides does not constitute notice-and-comment rulemaking under Government Code, Chapter 2001. However, after consideration of the comments received and further review of the proposal, the department has determined not to adopt proposed new §215.107 at this time and therefore withdraws the proposed section.

Comment: TADA commented in opposition to proposed new 215.107 because portions of the proposed language, including language regarding manufacturer and dealer obligations to perform warranty repairs, could create confusion.

Response: The department agrees. After consideration of the comments received and further review of the proposal, the department has determined not to adopt proposed new §215.107 at this time and therefore withdraws the proposed section.

Comment. TADA and TRVA opposed adoption of the term "licenses" in §215.107(a), stating that manufacturers and distributors do not typically license line-makes to each other. TADA commented that it is not aware of a situation in which manufacturers and distributors license line-makes to each other, and both commenters asserted that such arrangements are not anticipated by statutes requiring manufacturers to sell through franchise dealers.

Response. The department agrees. After consideration of the comments received and further review of the proposal, the department has determined not to adopt proposed new §215.107 at this time and therefore withdraws the proposed section.

Comment. TADA opposed adoption of amendments to §215.120 that remove the modifiers specifying "manufacturer" and "converter" plates, because doing so could create confusion about whether standard license plates are interchangeable. TADA recommended amending §215.120(g) to clarify that it applies only to manufacturers or converters.

Response. The department agrees that the removal of references to "manufacturer" and "converter" license plates could create confusion. To avoid confusion, the department is not adopting the proposed amendments to §215.120(a) and (b), and those subsections retain the current references to manufacturer and converter standard license plates. The rule, when read as a whole, applies to manufacturers, distributors, and converters. At adoption, the department revised the title of §215.120 to "Standard License Plates for Manufacturers, Distributors, and Converters" to clarify that scope. The department agrees that §215.120(g) prior to amendment could be read in isolation to apply more broadly. At adoption, the department revised subsection (g) to expressly reference manufacturers, distributors, and converters as the parties both requesting additional standard license plates and providing the supporting business justification for the request. The department also revised subsection (h) to similarly reference manufacturers, distributors and converters to better define the scope of the rule. These revisions clarify the intended scope of §215.120 and eliminate potential ambiguity and confirm that standard license plates are not interchangeable with other plate types.

Comment. TADA opposed adoption of the amendments to §215.121, and requested that TxDMV amend the rule to explicitly limit its application to manufacturers, distributors, and converters.

Response. The department disagrees. These violations apply to all license holders addressed in this subchapter and under Occupations Code, Chapter 2301, including dealers. Section 215.121 expressly applies to a license applicant, license holder, or a person engaged in a business for which a license is required, and is not limited to manufacturers, distributors, or converters. References in prior rulemaking materials to specific license types only explained specific amendments related to those license types and do not limit the scope of the rule.

Comment. TADA commented in support of proposed amendments to §215.140, which allow dealers to affix signs to doors or windows without requiring permanent installation in the ground and to store license plates at a physical location listed in the license record other than a licensed sales and service location.

Response. The department agrees that the proposed amendments to §215.140 provide dealers with greater flexibility by allowing signage to be affixed to doors or windows without permanent installation and by allowing license plate storage at approved locations listed in the license record.

Comment. TADA commented in support of new §215.159, stating that it will allow dealers greater flexibility in storing and managing plate inventory.

Response. The department agrees that new §215.159 provides dealers with greater flexibility in storing and managing license plate inventory while maintaining appropriate oversight of plate control.

Comment. TADA commented in opposition to the proposed amendments to §215.244 that define "cure" and "subsequent violation" to establish a two-year period during which a license holder may be subject to enforcement for a subsequent violation of the same advertising provision, and proposed amendments to §215.270 that implement the revised definitions. TADA argued that courts have interpreted the statute to require the department to give a separate opportunity to cure each advertising violation.

Response. The department agrees. The Texas Legislature will have an opportunity to decide whether to clarify Occupations Code, §2301.203(c) during the 90th Legislative Session. The department therefore will not adopt rule amendments on this issue at this juncture to prevent any conflict with potential future legislation.

Comment. TADA opposed adoption of the proposed amendments to §215.264. TADA stated that the rule should be amended to track Federal Regulation M, 12 C.F.R. §213.7(f), to ensure consistency with federal lease disclosure requirements and avoid potential inconsistencies.

Response. The department agrees that removing the option to publish information in a written advertisement would remove an option for dealers that remains possible despite the decline of print media. The potential revision to §215.264(h)-(j) was identified as part of the Texas Regulatory Efficiency Office's review as an opportunity to modernize and streamline the rule language. However, the department understands that dealers are familiar with the current language and prefer to maintain it as an option. Accordingly, the department is not adopting amendments to these subsections and will retain the existing language.

SUBCHAPTER A. GENERAL PROVISIONS

43 TAC §215.1

STATUTORY AUTHORITY. The department adopts a repeal to Chapter 215 under Occupations Code, §2301.151, which gives the board authority to regulate the distribution, sale, and lease of motor vehicles and the authority to take any action that is necessary or convenient to exercise that authority; Occupations Code, §2301.152, which authorizes the board to establish the qualifications of license holders, ensure that the distribution, sale, and lease of motor vehicles is conducted as required by statute and board rules, to prevent fraud, unfair practices, discrimination, impositions, and other abuses in connection with the distribution and sale of motor vehicles, and to enforce and administer Occupations Code, Chapter 2301 and Transportation Code, Chapter 503; Occupations Code, §2301.155, which authorizes the board to adopt rules as necessary or convenient to administer Occupations Code, Chapter 2301, and to govern practice and procedure before the board; Occupations Code, §2301.651, which gives the board authority to deny an application for a license, revoke or suspend a license, place on probation, or reprimand a licensee if the applicant or license holder is unfit, makes a material misrepresentation, violates any law relating to the sale, distribution, financing, or insuring of motor vehicles, willfully defrauds a purchaser, or fails to fulfill a written agreement with a retail purchaser of a motor vehicle; Government Code, §411.122(d), which authorizes department access to criminal history record information maintained by DPS; Government Code, §411.12511, as amended by Senate Bill (SB) 2587, 89th Legislature (2025), which authorizes the department to obtain criminal history record information from DPS and the FBI for license applicants, license holders, and representatives whose act or omission would be cause for denying, revoking, or suspending a general distinguishing number or license issued under Transportation Code, Chapter 503, or Occupations Code, Chapters 2301 and 2302; Occupations Code, §55.004, as amended by House Bill (HB) 5629, 89th Legislature, Regular Session, which requires the department to adopt rules for the issuance of a license to military service members, military veterans, or military spouses that allow licensure if the applicant holds a current license issued by another state that is similar in scope to the license in Texas and is in good standing with that state's licensing authority, or has held a license in Texas within the preceding five years; Occupations Code, §2302.051, which authorizes the board to adopt rules as necessary to administer Occupations Code, Chapter 2302; Transportation Code, §503.002, which authorizes the board to adopt rules for the administration of Transportation Code, Chapter 503; Transportation Code, §503.009, which authorizes the board to adopt rules for certain contested cases; Transportation Code, §503.0296, which requires the board to adopt a rule requiring that an applicant for an original or renewal general distinguishing number who proposes to be an independent motor vehicle dealer complete web-based education and training developed or approved by the department; Transportation Code, §503.033, which authorizes the board to adopt rules to prescribe the form of the notice of a surety bond and the procedure by which a claimant may recover against the surety bond; Transportation Code, §503.061, which allows the board to adopt rules regulating the issuance and use of dealer's license plates; Transportation Code, §503.0631, which requires the department to adopt rules to implement and manage the department's database of dealer-issued buyer's license plates; and Transportation Code, §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and the duties of the department, as well as the statutes referenced throughout this preamble.

The department also adopts a repeal under the authority of Government Code, §2001.039, in addition to the statutory authority referenced throughout this preamble. Government Code, §2001.039 requires state agencies to readopt, readopt with amendments, or repeal a rule as the result of reviewing the rule.

CROSS REFERENCE TO STATUTE. This repeal implements Government Code, Chapters 411 and 2001; Occupations Code, Chapters 53, 55, and 2301; and Transportation Code, Chapters 501-503, and 1002.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 9, 2026.

TRD-202604316

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: October 29, 2026

Proposal publication date: April 24, 2026

For further information, please call: (512) 465-4160

43 TAC §215.2

STATUTORY AUTHORITY. The department adopts amendments to Chapter 215 under Occupations Code, §2301.151, which gives the board authority to regulate the distribution, sale, and lease of motor vehicles and the authority to take any action that is necessary or convenient to exercise that authority; Occupations Code, §2301.152, which authorizes the board to establish the qualifications of license holders, ensure that the distribution, sale, and lease of motor vehicles is conducted as required by statute and board rules, to prevent fraud, unfair practices, discrimination, impositions, and other abuses in connection with the distribution and sale of motor vehicles, and to enforce and administer Occupations Code, Chapter 2301 and Transportation Code, Chapter 503; Occupations Code, §2301.155, which authorizes the board to adopt rules as necessary or convenient to administer Occupations Code, Chapter 2301, and to govern practice and procedure before the board; Occupations Code, §2301.651, which gives the board authority to deny an application for a license, revoke or suspend a license, place on probation, or reprimand a license holder who is unfit, makes a material misrepresentation, violates Occupations Code, Chapter 2301 or a board rule or order, violates any law relating to the sale, distribution, financing, or insuring of motor vehicles, fails to maintain qualifications for a license, willfully defrauds a purchaser, fails to fulfill a written agreement with a retail purchaser of a motor vehicle, or violates the requirements of Transportation Code, §503.0631; Government Code, §411.122(d), which authorizes department access to criminal history record information maintained by DPS; Government Code, §411.12511, as amended by Senate Bill (SB) 2587, 89th Legislature (2025), which authorizes the department to obtain criminal history record information from DPS and the FBI for license applicants, license holders, and representatives whose act or omission would be cause for denying, revoking, or suspending a general distinguishing number or license issued under Transportation Code, Chapter 503, or Occupations Code, Chapters 2301 and 2302; Occupations Code, §55.004, as amended by House Bill (HB) 5629, 89th Legislature, Regular Session, which requires the department to adopt rules for the issuance of a license to military service members, military veterans, or military spouses that allow licensure if the applicant holds a current license issued by another state that is similar in scope to the license in Texas and is in good standing with that state's licensing authority, or has held a license in Texas within the preceding five years; Occupations Code, §2302.051, which authorizes the board to adopt rules as necessary to administer Occupations Code, Chapter 2302; Transportation Code, §503.002, which authorizes the board to adopt rules for the administration of Transportation Code, Chapter 503; Transportation Code, §503.009, which authorizes the board to adopt rules for certain contested cases; Transportation Code, §503.0296, which requires the board to adopt a rule requiring that an applicant for an original or renewal general distinguishing number who proposes to be an independent motor vehicle dealer complete web-based education and training developed or approved by the department; Transportation Code, §503.033, which authorizes the board to adopt rules to prescribe the form of the notice of a surety bond and the procedure by which a claimant may recover against the surety bond; Transportation Code, §503.061, which allows the board to adopt rules regulating the issuance and use of dealer's license plates; Transportation Code, §503.063, which establishes requirements governing dealer-issued buyer's license plates and authorizes actions to be taken in accordance with department rules; Transportation Code, §503.0631, which requires the department to adopt rules to implement and manage the department's database of dealer-issued buyer's license plates; Transportation Code, §503.0633, which authorizes the department by rule to establish the maximum number of license plates or sets of license plates that a dealer may obtain under Transportation Code, §503.063 and §503.065; Transportation Code, §730.014, which authorizes state agencies to adopt rules to implement and administer the Motor Vehicle Records Disclosure Act; Transportation CodeÂ §1001.002, which provides that the department shall administer and enforce Occupations Code, Chapter 2301; and Transportation Code, §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and the duties of the department, as well as the statutes referenced throughout this preamble.

The department also adopts amendments under the authority of Transportation Code, §501.0041 and §502.0021, and Government Code, §§2001.004, 2001.039, and 2001.054, in addition to the statutory authority referenced throughout this preamble.

Government Code, §2001.004 requires state agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures. Government Code, §2001.039 requires state agencies to review and readopt, readopt with amendments, or repeal a rule as the result of reviewing the rule. Government Code, §2001.054 specifies the requirements regarding the grant, denial, renewal, revocation, suspension, annulment, or withdrawal of a license.

CROSS REFERENCE TO STATUTE. The adopted amendments, new sections, and repeals implement Government Code, Chapters 411 and 2001; Occupations Code, Chapters 53, 55, and 2301; and Transportation Code, Chapters 501-503, 730, 1001, and 1002.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 9, 2026.

TRD-202604315

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: October 29, 2026

Proposal publication date: April 24, 2026

For further information, please call: (512) 465-4160

SUBCHAPTER B. LICENSES, GENERALLY

43 TAC §215.81

CROSS REFERENCE TO STATUTE. This repeal implements Government Code, Chapters 411 and 2001; Occupations Code, Chapters 53, 55, and 2301; and Transportation Code, Chapters 501-503, and 1002.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 9, 2026.

TRD-202604318

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: October 29, 2026

Proposal publication date: April 24, 2026

For further information, please call: (512) 465-4160

43 TAC §§215.82 - 215.84, 215.89, 215.91

STATUTORY AUTHORITY. The department adopts amendments to Chapter 215 under Occupations Code, §2301.151, which gives the board authority to regulate the distribution, sale, and lease of motor vehicles and the authority to take any action that is necessary or convenient to exercise that authority; Occupations Code, §2301.152, which authorizes the board to establish the qualifications of license holders, ensure that the distribution, sale, and lease of motor vehicles is conducted as required by statute and board rules, to prevent fraud, unfair practices, discrimination, impositions, and other abuses in connection with the distribution and sale of motor vehicles, and to enforce and administer Occupations Code, Chapter 2301 and Transportation Code, Chapter 503; Occupations Code, §2301.155, which authorizes the board to adopt rules as necessary or convenient to administer Occupations Code, Chapter 2301, and to govern practice and procedure before the board; Occupations Code, §2301.651, which gives the board authority to deny an application for a license, revoke or suspend a license, place on probation, or reprimand a licensee if the applicant or license holder is unfit, makes a material misrepresentation, violates any law relating to the sale, distribution, financing, or insuring of motor vehicles, willfully defrauds a purchaser, or fails to fulfill a written agreement with a retail purchaser of a motor vehicle; Government Code, §411.122(d), which authorizes department access to criminal history record information maintained by DPS; Government Code, §411.12511, as amended by Senate Bill (SB) 2587, 89th Legislature (2025), which authorizes the department to obtain criminal history record information from DPS and the FBI for license applicants, license holders, and representatives whose act or omission would be cause for denying, revoking, or suspending a general distinguishing number or license issued under Transportation Code, Chapter 503, or Occupations Code, Chapters 2301 and 2302; Occupations Code, §55.004, as amended by House Bill (HB) 5629, 89th Legislature, Regular Session, which requires the department to adopt rules for the issuance of a license to military service members, military veterans, or military spouses that allow licensure if the applicant holds a current license issued by another state that is similar in scope to the license in Texas and is in good standing with that state's licensing authority, or has held a license in Texas within the preceding five years; Occupations Code, §2302.051, which authorizes the board to adopt rules as necessary to administer Occupations Code, Chapter 2302; Transportation Code, §503.002, which authorizes the board to adopt rules for the administration of Transportation Code, Chapter 503; Transportation Code, §503.009, which authorizes the board to adopt rules for certain contested cases; Transportation Code, §503.0296, which requires the board to adopt a rule requiring that an applicant for an original or renewal general distinguishing number who proposes to be an independent motor vehicle dealer complete web-based education and training developed or approved by the department; Transportation Code, §503.033, which authorizes the board to adopt rules to prescribe the form of the notice of a surety bond and the procedure by which a claimant may recover against the surety bond; Transportation Code, §503.061, which allows the board to adopt rules regulating the issuance and use of dealer's license plates; Transportation Code, §503.0631, which requires the department to adopt rules to implement and manage the department's database of dealer-issued buyer's license plates; Transportation Code, §730.014, which authorizes state agencies to adopt rules to implement and administer the Motor Vehicle Records Disclosure Act; and Transportation Code, §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and the duties of the department, as well as the statutes referenced throughout this preamble.

Government Code, §2001.004 requires state agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures. Government Code, §2001.039 requires state agencies to readopt, readopt with amendments, or repeal a rule as the result of reviewing the rule. Government Code, §2001.054 specifies the requirements regarding the grant, denial, renewal, revocation, suspension, annulment, or withdrawal of a license.

CROSS REFERENCE TO STATUTE. The adopted amendments implement Government Code, Chapters 411 and 2001; Occupations Code, Chapters 53, 55, and 2301; and Transportation Code, Chapters 501-503, 730, 1001, and 1002.

§215.83. License Applications, Amendments, or Renewals.

(a) An applicant for a new license must register for an account in the department-designated licensing system by:

(1) accessing the licensing system through the department's website;

(2) designating the account administrator, which must be an owner, officer, manager, or bona fide employee;

(3) providing the name and email address for the account administrator; and

(4) providing the applicant's business telephone number, name, business type, and social security number or employer identification number, as applicable.

(b) An application for a new license, license amendment, or license renewal filed with the department must be:

(1) filed electronically in the department-designated licensing system on a form approved by the department;

(2) completed by the applicant, license holder, or authorized representative who is an employee, a licensed attorney, or a certified public accountant;

(3) accompanied by the required fee, paid by credit card or by electronic funds transfer, drawn from an account held by the applicant or license holder, or drawn from a trust account of the applicant's attorney or certified public accountant; and

(4) accompanied by proof of a surety bond, if required.

(c) An authorized representative of the applicant or license holder who files an application with the department on behalf of an applicant or license holder may be required to provide written proof of authority to act on behalf of the applicant or license holder.

(d) The department will not provide information regarding the status of an application, application deficiencies, or pending new license numbers to a person other than a person listed in subsection (a)(2) of this section, unless that person files a written request under Government Code, Chapter 552.

(e) Prior to the expiration of a license, a license holder or authorized representative must electronically file with the department a sufficient license renewal application. Failure to receive notice of license expiration from the department does not relieve the license holder from the responsibility to timely file a sufficient license renewal application. A license renewal application is timely filed if the department receives a sufficient license renewal application on or before the date the license expires.

(f) An application for a new license, license amendment, or license renewal filed with the department must be sufficient. An application is sufficient if the application:

(1) includes all information and documentation required by the department; and

(2) is filed in accordance with subsection (a) of this section.

(g) If an applicant, license holder, or authorized representative does not provide the information or documentation required by the department, the department will issue a written notice of deficiency. The information or documentation requested in the written notice of deficiency must be received by the department within 20 calendar days of the date of the notice of deficiency, unless the department issues a written extension of time. If an applicant, license holder, or authorized representative fails to respond or fully comply with all deficiencies listed in the written notice of deficiency within the time prescribed by this subsection, the application will be deemed withdrawn and will be administratively closed.

(h) The department will evaluate a sufficient application for a new license, license amendment, or license renewal in accordance with applicable rules and statutes to determine whether to approve or deny the application. If the department determines that there are grounds for denial of the application, the department may pursue denial of the application in accordance with Subchapter G of this chapter (relating to Administrative Sanctions).

(i) The department will process an application for a new license, license amendment, or license renewal filed by a military service member, military spouse, or military veteran in accordance with Occupations Code, Chapter 55 and §215.91 of this title (relating to License Processing for Military Service Members, Spouses, and Veterans).

(j) A license holder who timely files a sufficient license renewal application in accordance with subsection (d) of this section may continue to operate under the expired license until the license renewal application is determined in accordance with Government Code §2001.054.

(k) A license holder who fails to timely file a sufficient license renewal application in accordance with subsection (d) of this section is not authorized to continue licensed activities after the date the license expires. A license holder may dispute a decision that a license renewal application was not timely or sufficient by submitting evidence to the department demonstrating that the license renewal application was timely and sufficient. Such evidence must be received by the department within 15 days of the date the department issues notice that a timely or sufficient license renewal application was not received by the department.

(l) The department shall accept a late license renewal application up to 90 days after the date the license expires. In accordance with subsection (k) of this section, the license holder is not authorized to continue licensed activities after the date the license expires until the department approves the late license renewal application. If the department grants a license renewal under this section, the licensing period begins on the date the department issues the renewed license. The license holder may resume licensed activities upon receipt of the department's written verification or upon receipt of the renewed license.

(m) If the department has not received a late license renewal application within 90 days after the date the license expires, the department will close the license. A person must apply for and receive a new license before that person is authorized to resume activities requiring a license.

(n) A dealer's standard license plate issued in accordance with Transportation Code, Chapter 503, Subchapter C expires on the date the associated license expires, is canceled, or when a license renewal application is determined, whichever is later.

§215.84. Brokering, New Motor Vehicles.

(a) Unless excluded from the definition of "Broker" in Occupations Code, §2301.002, a person may not act, offer to act, or claim to be a broker.

(b) For purposes of this chapter, the phrase "arranges or offers to arrange a transaction," as used in the definition of broker in Occupations Code, §2301.002, includes the practice of arranging or offering to arrange a transaction involving the sale of a new motor vehicle for a fee, commission, or other valuable consideration. Advertising is not acting as a broker, provided the person's business primarily is broadcasting, printing, publishing, or advertising for others in their own names.

(c) A buyer referral service, program, plan, club, or any other entity that accepts a fee for arranging a transaction involving the sale of a new motor vehicle is a broker. The payment of a fee to such entity is aiding and abetting brokering. However, a referral service, program, plan, club, or other entity that forwards a referral to a franchised dealership may lawfully operate in a manner that includes all the following conditions:

(1) There is no exclusive market area offered to a dealer by the program. All dealers are allowed to participate in the program on equal terms.

(2) Participation by a dealer in the program is not restricted by conditions, such as limiting the number of line-makes or discrimination by size of dealership or location. The total number of participants in the program may be restricted if the program is offered to all dealers at the same time, with no regard to the line-make.

(3) All participants pay the same fee for participation in the program. The program fee shall be a weekly, monthly, or annual fee, regardless of the size, location, or line-makes sold by the franchised dealer.

(4) A person is not to be charged a fee on a per referral fee basis or any other basis that could be considered a transaction-related fee.

(5) The program does not set or suggest to the dealer any price of a motor vehicle or a trade-in.

(6) The program does not advertise or promote its plan in a manner that implies that the buyer, as a customer of that program, receives a special discounted price that cannot be obtained unless the customer is referred through that program.

(7) A program must comply with Subchapter F of this chapter (related to Advertising).

(d) This section does not apply to a person who is not a broker as defined in Occupations Code, §2301.002.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 9, 2026.

TRD-202604317

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: October 29, 2026

Proposal publication date: April 24, 2026

For further information, please call: (512) 465-4160

SUBCHAPTER C. FRANCHISED DEALERS, MANUFACTURERS, DISTRIBUTORS, AND CONVERTERS

43 TAC §§215.104, 215.110, 215.113, 215.115, 215.120, 215.121

The department also adopts amendments under the authority of Transportation Code, §§501.0041, 502.0021, 503.002, 504.0011, and 520.003; and Government Code, §2001.004 and §2001.054, in addition to the statutory authority referenced throughout this preamble.

Transportation Code, §501.0041 authorizes the department to adopt rules to administer Transportation Code, Chapter 501. Transportation Code, §502.0021 authorizes the department to adopt rules to administer Transportation Code, Chapter 502. Transportation Code, §503.002 authorizes the board to adopt rules for the administration of Transportation Code, Chapter 503. Transportation Code, §504.0011 authorizes the board to adopt rules to implement and administer Chapter 504. Transportation Code, §520.003 authorizes the department to adopt rules to administer Chapter 520.

Government Code, §2001.004 requires state agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures. Government Code, §2001.054 specifies the requirements regarding the grant, denial, renewal, revocation, suspension, annulment, or withdrawal of a license.

CROSS REFERENCE TO STATUTE. These adopted new sections and amendments implement Government Code, Chapter 2001; Occupations Code, Chapters 2301 and 2305; and Transportation Code, Chapters 501-504, 520, and 1002.

§215.120. Standard License Plates for Manufacturers, Distributors, and Converters.

(a) A manufacturer, distributor, or converter may apply for a manufacturer or converter standard license plate for use on a new unregistered vehicle of the same vehicle type assembled or modified in accordance with Transportation Code §503.064 or §503.0618, as applicable:

(1) when applying for a new or renewal license, or

(2) by submitting a standard license plate request application electronically in the system designated by the department.

(b) A manufacturer may use a manufacturer's standard license plate to test a prototype motor vehicle on a public street or highway including a commercial motor vehicle prototype designed to carry a load. A manufacturer's standard license plate may not be used on a commercial motor vehicle prototype or new commercial motor vehicle to carry a load for which the manufacturer or other person receives compensation.

(c) A manufacturer, distributor, or converter shall attach a standard license plate to the rear of a vehicle in accordance with §217.27 of this title (relating to Vehicle Registration Insignia).

(d) A manufacturer, distributor, or converter shall maintain a record of each standard license plate issued to the license holder by the department either in the license holder's recordkeeping system or in the department-designated system. The license plate record must contain:

(1) the license plate number;

(2) the year and make of the vehicle to which the license plate is secured;

(3) the VIN of the vehicle, if one has been assigned; and

(4) the name of the person in control of the license plate.

(e) If a manufacturer, distributor, or converter cannot account for a standard license plate or a standard license plate is damaged, the manufacturer, distributor, or converter shall:

(1) document the license plate as "void" in the department-designated system; and

(2) within three days of discovering that the license plate is missing or damaged, report the license plate as lost, stolen, or damaged electronically in the system designated by the department; and

(3) if found after reported missing, cease use of the license plate.

(f) A standard license plate is no longer valid for use after the manufacturer, distributor, or converter reports to the department that the license plate is lost, stolen, or damaged. A manufacturer, distributor, or converter must render a void license plate unusable by permanently marking the front of the plate with the word "VOID" or a large "X" and once marked, shall destroy or recycle the license plate, or return the license plate to the department within 10 days.

(g) In evaluating requests for additional standard license plates from any eligible manufacturer, distributor, or converter, the department shall consider the business justification provided by that manufacturer, distributor, or converter, including the following:

(1) the number of vehicles assembled or modified in the prior 12 months at facilities in or serving the Texas market;

(2) the highest number of motor vehicles in inventory in the prior 12 months;

(3) the size and type of business;

(4) how the license holder typically uses standard license plates;

(5) the license holder's record of tracking and reporting missing or damaged license plates to the department; and

(6) any other factor the department in its discretion deems necessary to support the number of license plates requested.

(h) A manufacturer, distributor, or converter shall return a department-issued license plate to the department within 10 days of the license holder closing the associated license or the associated license being revoked, canceled, or closed by the department.

§215.121. Sanctions.

(a) The board or department may take the following actions against a license applicant, a license holder, or a person engaged in business for which a license is required:

(1) deny an application;

(2) revoke a license;

(3) suspend a license;

(4) assess a civil penalty;

(5) issue a cease and desist order; or

(6) take other authorized action.

(b) The board or department may take action described in subsection (a) of this section if a license applicant, a license holder, or a person engaged in business for which a license is required:

(1) fails to maintain records required under this chapter;

(2) refuses or fails within 15 days to comply with a request for records made by a representative of the department;

(3) sells or offers to sell a motor vehicle to a retail purchaser other than through a licensed or authorized dealer;

(4) fails to submit a license amendment application in the electronic licensing system designated by the department to notify the department of a change of the license holder's physical address, mailing address, telephone number, or email address within 10 days of the change;

(5) fails to timely submit a license amendment application in the electronic licensing system designated by the department to notify the department of a license holder's business or assumed name change, deletion of a line-make, or management or ownership change;

(6) fails to notify the department or pay or reimburse a franchised dealer as required by law;

(7) misuses or fails to display a license plate as required by law, or fails to report a lost, stolen, or damaged license plate within the time designated by rule;

(8) is a manufacturer or distributor and fails to provide a manufacturer's certificate for a new vehicle;

(9) fails to remain regularly and actively engaged in the business of manufacturing, assembling, or modifying a new motor vehicle of the type and line make for which a license has been issued by the department;

(10) violates a provision of Occupations Code, Chapter 2301; Transportation Code Chapters 501-504 or 520; a board order or rule; or a regulation of the department relating to the manufacture, assembly, sale, lease, distribution, financing, or insuring of vehicles, including advertising rules under Subchapter F of this chapter (relating to Advertising);

(11) is convicted of an offense that directly relates to the duties or responsibilities of the occupation in accordance with §211.10 of this title (relating to Criminal Offense Guidelines);

(12) is determined by the board or department, in accordance with §215.89 of this title (relating to Fitness), to be unfit to hold a license;

(13) omits information or makes a material misrepresentation in any application or other documentation filed with the department including providing a false or forged identity document or a false or forged photograph, electronic image, or other document;

(14) fails to remit payment as ordered for a civil penalty assessed by the board or department;

(15) violates any state or federal law or regulation relating to the manufacture, distribution, modification, or sale of a motor vehicle;

(16) fails to issue a refund as ordered by the board or department;

(17) fails to participate in statutorily required mediation without good cause;

(18) fails to keep or maintain records required under Occupations Code, Chapter 2305, Subchapter D; or

(19) violates a provision of Transportation Code, Chapter 730, Motor Vehicle Records Disclosure Act, including a violation by an employee or other agent.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 9, 2026.

TRD-202604319

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: October 29, 2026

Proposal publication date: April 24, 2026

For further information, please call: (512) 465-4160

SUBCHAPTER D. GENERAL DISTINGUISHING NUMBERS AND IN-TRANSIT LICENSES

43 TAC §215.131

STATUTORY AUTHORITY. The department adopts a repeal to Chapter 215 under Occupations Code, §2301.151, which gives the board authority to regulate the distribution, sale, and lease of motor vehicles and the authority to take any action that is necessary or convenient to exercise that authority; Occupations Code, §2301.152, which authorizes the board to establish the qualifications of license holders, ensure that the distribution, sale, and lease of motor vehicles is conducted as required by statute and board rules, to prevent fraud, unfair practices, discrimination, impositions, and other abuses in connection with the distribution and sale of motor vehicles, and to enforce and administer Occupations Code, Chapter 2301 and Transportation Code, Chapter 503; Occupations Code, §2301.155, which authorizes the board to adopt rules as necessary or convenient to administer Occupations Code, Chapter 2301, and to govern practice and procedure before the board; Occupations Code, §2301.651, which gives the board authority to deny an application for a license, revoke or suspend a license, place on probation, or reprimand a licensee if the applicant or license holder is unfit, makes a material misrepresentation, violates any law relating to the sale, distribution, financing, or insuring of motor vehicles, willfully defrauds a purchaser, or fails to fulfill a written agreement with a retail purchaser of a motor vehicle; Government Code, §411.122(d), which authorizes department access to criminal history record information maintained by DPS; Government Code, §411.12511, as amended by Senate Bill (SB) 2587, 89th Legislature (2025), which authorizes the department to obtain criminal history record information from DPS and the FBI for license applicants, license holders, and representatives whose act or omission would be cause for denying, revoking, or suspending a general distinguishing number or license issued under Transportation Code, Chapter 503, or Occupations Code, Chapters 2301 and 2302; Occupations Code, §55.004, as amended by House Bill (HB) 5629, 89th Legislature, Regular Session, which requires the department to adopt rules for the issuance of a license to military service members, military veterans, or military spouses that allow licensure if the applicant holds a current license issued by another state that is similar in scope to the license in Texas and is in good standing with that state's licensing authority, or has held a license in Texas within the preceding five years; Occupations Code, §2302.051, which authorizes the board to adopt rules as necessary to administer Occupations Code, Chapter 2302; Transportation Code, §503.002, which authorizes the board to adopt rules for the administration of Transportation Code, Chapter 503; Transportation Code, §503.009, which authorizes the board to adopt rules for certain contested cases; Transportation Code, §503.0296, which requires the board to adopt a rule requiring that an applicant for an original or renewal general distinguishing number who proposes to be an independent motor vehicle dealer complete web-based education and training developed or approved by the department; Transportation Code, §503.033, which authorizes the board to adopt rules to prescribe the form of the notice of a surety bond and the procedure by which a claimant may recover against the surety bond; Transportation Code, §503.061, which requires the board to adopt rules regulating the issuance of dealer's license plates; Transportation Code, §503.0631, which requires the department to adopt rules to implement and manage the department's database of dealer-issued buyer's license plates; Transportation Code, §503.0633, which allows the department to establish the maximum number of license plates or sets of license plates a dealer may obtain annually under Transportation Code and Transportation Code, §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and the duties of the department, as well as the statutes referenced throughout this preamble.

The department also adopts a repeal under the authority Government Code, §2001.039, in addition to the statutory authority referenced throughout this preamble. Government Code, §2001.039 requires state agencies to readopt, readopt with amendments, or repeal a rule as the result of reviewing the rule.

CROSS REFERENCE TO STATUTE. This repeal implements Government Code, Chapters 411 and 2001; Occupations Code, Chapters 53, 55, and 2301; and Transportation Code, Chapters 501-503, and 1002.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 9, 2026.

TRD-202604321

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: October 29, 2026

Proposal publication date: April 24, 2026

For further information, please call: (512) 465-4160

43 TAC §§215.132 - 215.134, 215.140, 215.141, 215.144, 215.145, 215.152 - 215.155, 215.158, 215.159

STATUTORY AUTHORITY. The department adopts new and amendments to Chapter 215 under Occupations Code, §2301.151, which gives the board authority to regulate the distribution, sale, and lease of motor vehicles and the authority to take any action that is necessary or convenient to exercise that authority; Occupations Code, §2301.152, which authorizes the board to establish the qualifications of license holders, ensure that the distribution, sale, and lease of motor vehicles is conducted as required by statute and board rules, to prevent fraud, unfair practices, discrimination, impositions, and other abuses in connection with the distribution and sale of motor vehicles, and to enforce and administer Occupations Code, Chapter 2301 and Transportation Code, Chapter 503; Occupations Code, §2301.155, which authorizes the board to adopt rules as necessary or convenient to administer Occupations Code, Chapter 2301, and to govern practice and procedure before the board; Occupations Code, §2301.651, which gives the board authority to deny an application for a license, revoke or suspend a license, place on probation, or reprimand a licensee if the applicant or license holder is unfit, makes a material misrepresentation, violates any law relating to the sale, distribution, financing, or insuring of motor vehicles, willfully defrauds a purchaser, or fails to fulfill a written agreement with a retail purchaser of a motor vehicle; Transportation Code, §503.061, which allows the board to adopt rules regulating the issuance and use of dealer's license plates; Transportation Code, §503.0631, which requires the department to adopt rules to implement and manage the department's database of dealer-issued buyer's license plates; Transportation Code, §503.0633, which allows the department to establish the maximum number of license plates or sets of license plates a dealer may obtain annually under Transportation Code, §503.063 and §503.065; Transportation Code, §504.0011, which allows the board to adopt rules to implement and administer Chapter 504; Transportation Code, §520.0071, which requires the board to adopt rules classifying deputies performing titling and registration duties, the duties and obligations of these deputies, the type and amount of bonds that may be required by a county tax assessor-collector for a deputy performing titling and registration duties, and the fees that may be charged or retained by deputies; Transportation Code, §520.021, which allows the department to adopt rules and policies for the maintenance and use of the department's automated registration and titling system; Transportation Code, §730.014 which authorizes state agencies to adopt rules to implement and administer the Motor Vehicle Records Disclosure Act; and Transportation Code, §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and the duties of the department, as well as the statutes referenced throughout this preamble.

Government Code, §2001.004 requires state agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures. Government Code, §2001.054 specifies the requirements regarding the grant, denial, renewal, revocation, suspension, annulment, or withdrawal of a license.

§215.133. GDN Application Requirements for a Dealer or a Wholesale Motor Vehicle Auction.

(a) No person may engage in business as a dealer or as a wholesale motor vehicle auction unless that person has a valid GDN assigned by the department for each location from which the person engages in business. A dealer must also hold a GDN for a consignment location, unless the consignment location is a wholesale motor vehicle auction.

(b) Subsection (a) of this section does not apply to a person exempt from the requirement to obtain a GDN under Transportation Code §503.024.

(c) A GDN dealer or wholesale motor vehicle auction license application must be on a form prescribed by the department and properly completed by the applicant as required under §215.83 of this title (relating to License Applications, Amendments, or Renewals). A GDN dealer or wholesale motor vehicle auction application must include all required information, required supporting documents, and required fees and must be submitted to the department electronically in the licensing system designated by the department. A GDN dealer or wholesale motor vehicle auction GDN holder renewing or amending its GDN, or a dealer or wholesale motor vehicle auction reapplying for a GDN, must enter or verify current license information, provide related information and documents for any new requirements or changes to the GDN, and pay required fees including any outstanding civil penalties owed the department under a final order. An applicant for a new dealer or wholesale motor vehicle auction GDN must provide the following:

(1) Required information:

(A) type of GDN requested;

(B) business information, including the name, physical and mailing addresses, telephone number, Secretary of State file number (as applicable), and website address, as applicable;

(D) contact name, email address, and telephone number of a person who can provide information about business operations and the motor vehicle products or services offered;

(E) the name, social security number, date of birth, identity document information, and ownership percentage for each owner, partner, member, or principal if the applicant is not a publicly traded company;

(F) the name, social security number, date of birth, and identity document information for each officer, director, manager, trustee, or other representative authorized to act on behalf of the applicant if the applicant is owned in full or in part by a legal entity;

(G) the name, employer identification number, ownership percentage, and non-profit or publicly traded status for each legal entity that owns the applicant in full or in part;

(H) the name, social security number, date of birth, and identity document information of at least one manager or other bona fide employee who will be present at the established and permanent place of business if the owner is out of state or will not be present during business hours at the established and permanent place of business in Texas;

(I) if a dealer, the name, telephone number, and business email address of the account administrator for the temporary tag database prior to July 1, 2025, or for the license plate system on or after July 1, 2025, designated by the applicant who must be an owner or representative listed in the application;

(J) criminal history record information under the laws of Texas, another state in the United States, the United States, and any foreign jurisdiction for each person listed in the application, including offense description, date, and location;

(K) military service status;

(L) licensing history required to evaluate fitness for licensure under §215.89 of this title (relating to Fitness);

(M) information about the business location and business premises, including whether the applicant will operate as a salvage vehicle dealer at the location;

(N) history of insolvency, including outstanding or unpaid debts, judgments, or liens, unless the debt was discharged under 11 U.S.C. §§101 et seq. (Bankruptcy Act) or is pending resolution under a case filed under the Bankruptcy Act;

(O) signed Certification of Responsibility, which is a form provided by the department; and

(P) if a dealer, whether the applicant repairs a motor vehicle with a catalytic converter in Texas, and if so, the physical address where the repair is performed; and

(Q) any other information required by the department to evaluate the application under current law and board rules.

(2) A legible and accurate electronic image of each applicable required document:

(A) proof of a surety bond if required under §215.137 of this title (relating to Surety Bond);

(B) the certificate of filing, certificate of incorporation, or certificate of registration on file with the Secretary of State, as applicable;

(D) at least one of the following unexpired identity documents for each natural person listed in the application:

(i) driver license;

(ii) Texas Identification Card issued by the Texas Department of Public Safety under Transportation Code, Chapter 521, Subchapter E;

(iii) license to carry a handgun issued by the Texas Department of Public Safety under Government Code, Chapter 411, Subchapter H;

(iv) passport; or

(v) United States military identification card.

(E) a certificate of occupancy, certificate of compliance, or other official documentation confirming the business location complies with municipal ordinances, including zoning, occupancy, or other requirements for a vehicle business;

(F) documents proving business premises ownership, or lease or sublease agreement for the license period;

(G) business premises photos and a notarized affidavit certifying that all premises requirements in §215.140 of this title (relating to Established and Permanent Place of Business Premises Requirements) are met and will be maintained during the license period;

(H) evidence of franchise if applying for a franchised motor vehicle dealer GDN;

(I) proof of completion of the dealer education and training required under Transportation Code §503.0296, if applicable; and

(J) any other documents required by the department to evaluate the application under current law and board rules.

(3) Required fees:

(A) the fee for each type of license requested as prescribed by law; and

(B) the fee, including applicable taxes, for each dealer's standard plate, and dealer's temporary license plate on or after July 1, 2025, requested by the applicant as prescribed by law.

(d) An applicant for a dealer or wholesale auction GDN must also comply with fingerprint requirements in §211.13 of this title (relating to Fingerprint Requirements for Designated License Types), as applicable.

(e) An applicant for a GDN operating under a name other than the applicant's business name shall use the assumed name under which the applicant is authorized to do business, as filed with the Secretary of State or county clerk, and the assumed name of such legal entity shall be recorded by the applicant on the application using the letters "DBA." The applicant may not use a name or assumed name that may be confused with or is similar to that of a governmental entity or that is otherwise deceptive or misleading to the public.

(f) A wholesale motor vehicle dealer GDN holder may sell or exchange vehicles with licensed or authorized dealers only. A wholesale motor vehicle dealer GDN holder may not sell or exchange vehicles at retail.

(g) An independent mobility motor vehicle dealer shall retain and produce for inspection all records relating to the license requirements under Occupations Code, §2301.002(17-b) and all information and records required under Transportation Code §503.0295.

(h) In evaluating a new or renewal GDN application or an application for a new GDN location, the department may require a site visit to determine if the business location meets the requirements in §215.140. The department will require the applicant or GDN holder to provide a notarized affidavit confirming that all premises requirements are met and will be maintained during the license period.

(i) A person holding an independent motor vehicle dealer GDN and performing salvage activities must apply for a National Motor Vehicle Title Information System (NMVTIS) identification number and provide the number to the department in the GDN application.

(j) To be eligible for an independent motor vehicle dealer GDN, a person must complete dealer education and training specified by the department, except as provided in this subsection:

(1) once a person has completed the required dealer education and training, the person will not have to retake the dealer education and training for subsequent GDN renewals, but may be required to provide proof of dealer education and training completion as part of the GDN renewal process;

(2) a person holding an independent motor vehicle dealer GDN for at least 10 years as of September 1, 2019, is exempt from the dealer education and training requirement; and.

(3) a military service member, military spouse, or military veteran will receive appropriate credit for prior training, education, and professional experience and may be exempted from the dealer education and training requirement.

§215.134. Requirements for a Drive-a-way Operator In-Transit License.

(a) No drive-a-way operator may engage in business in Texas unless that person has a currently valid drive-a-way operator in-transit license issued by the department.

(b) A drive-a-way operator in-transit license application must be on a form prescribed by the department and properly completed by the applicant as required under §215.83 of this title (relating to License Applications, Amendments, or Renewals). A drive-a-way operator in-transit application must include all required information, required supporting documents, and required fees, and must be submitted to the department electronically in the licensing system designated by the department.

(c) A drive-a-way operator in-transit license holder renewing or amending its license must verify current license information, provide related information and documents for any new requirements or changes to the license, and pay required fees.

(d) An applicant for a new license must register for an account in the department-designated licensing system by selecting the licensing system icon on the dealer page of the department website. An applicant must designate the account administrator and provide the name and email address for that person, and provide the business telephone number, name, business type, and social security number or employer identification number, as applicable. The applicant's licensing account administrator must be an owner, officer, manager, or bona fide employee.

(e) Once registered, an applicant may apply for a new license and must provide the following:

(1) Required information:

(A) type of license requested;

(B) business information, including the name, physical and mailing addresses, telephone number, Secretary of State file number (as applicable), and website address, as applicable;

(D) contact name, email address, and telephone number of a person who can provide information about business operations and the motor vehicle services offered;

(E) the name, social security number, date of birth, identity document information, and ownership percentage for each owner, partner, member, beneficiary, or principal if the applicant is not a publicly traded company;

(G) the name, employer identification number, ownership percentage, and non-profit or publicly traded status for each legal entity that owns the applicant in full or in part;

(H) criminal history record information under the laws of Texas, another state in the United States, the United States, and any foreign jurisdiction for each person listed in the application, including offense description, date, and location;

(I) military service status;

(J) licensing history required to evaluate fitness for licensure under §215.89 of this title (relating to Fitness);

(K) signed Certification of Responsibility, which is a form provided by the department; and

(L) any other information required by the department to evaluate the application under current law and board rules.

(2) A legible and accurate electronic image of each applicable required document:

(A) the certificate of filing, certificate of incorporation, or certificate of registration on file with the Secretary of State, as applicable;

(B) each assumed name certificate on file with the Secretary of State or county clerk;

(i) driver license;

(ii) Texas Identification Card issued by the Texas Department of Public Safety under Transportation Code, Chapter 521, Subchapter E;

(iii) license to carry a handgun issued by the Texas Department of Public Safety under Government Code, Chapter 411, Subchapter H;

(iv) passport; or

(v) United States military identification card;

(D) a list of manufacturers, distributors, dealers, or auctions for which the applicant provides drive-a-way services;

(E) a description of the business model or business process, transportation methods, compensation agreements, products, and services used or offered sufficient to allow department to determine if the license type applied for is appropriate under Texas law; and

(F) any other documents required by the department to evaluate the application under current law and board rules.

(3) Required fees:

(A) the license fee as prescribed by law; and

(B) the fee, including any taxes, for each drive-a-way in-transit standard license plate requested by the applicant as prescribed by law.

(f) An applicant for a drive-a-way operator in-transit license must also comply with fingerprint requirements in §211.13 of this title (relating to Fingerprint Requirements for Designated License Types).

(g) An applicant operating under a name other than the applicant's business name shall use the name under which the applicant is authorized to do business, as filed with the Secretary of State or county clerk, and the assumed name of such legal entity shall be recorded by the applicant on the application using the letters "DBA." The applicant may not use a name or assumed name that may be confused with or is similar to that of a governmental entity or that is otherwise deceptive or misleading to the public.

§215.141. Sanctions.

(a) The board or department may take the following actions against a license applicant, a license holder, or a person engaged in business for which a license is required:

(1) deny an application;

(2) revoke a license;

(3) suspend a license;

(4) assess a civil penalty;

(5) issue a cease and desist order; or

(6) take other authorized action.

(b) The board or department may take action described in subsection (a) of this section if a license applicant, a license holder, or a person engaged in business for which a license is required:

(1) fails to maintain a good and sufficient bond or post the required bond notice if required under Transportation Code §503.033 (relating to Security Requirement);

(2) fails to meet or maintain the requirements of §215.140 of this title (relating to Established and Permanent Place of Business Premises Requirements);

(3) fails to maintain records required under this chapter;

(4) refuses or fails to comply with a request by the department for electronic records or to examine and copy electronic or physical records during the license holder's business hours at the licensed business location:

(A) sales records required to be maintained by §215.144 of this title (relating to Vehicle Records);

(B) ownership papers for a vehicle owned by that dealer or under that dealer's control;

(D) the Certificate of Occupancy, Certificate of Compliance, business license or permit, or other official documentation confirming compliance with county and municipal laws or ordinances for a vehicle business at the licensed physical location.

(5) refuses or fails to timely comply with a request for records made by a representative of the department;

(6) holds a wholesale motor vehicle dealer's license and sells or offers to sell a motor vehicle to a person other than a licensed or authorized dealer;

(7) sells or offers to sell a type of vehicle that the person is not licensed to sell;

(8) fails to submit a license amendment application in the electronic licensing system designated by the department to notify the department of a change of the license holder's physical address, mailing address, telephone number, or email address within 10 days of the change;

(9) fails to submit a license amendment application in the electronic licensing system designated by the department to notify the department of a license holder's name change, or management or ownership change within 10 days of the change;

(10) issues more than one buyer's license plate or buyer's temporary license plate for a vehicle sold on or after July 1, 2025, or more than one temporary tag for a vehicle sold before July 1, 2025, for the purpose of extending the purchaser's operating privileges for more than 60 days;

(11) fails to remove a license plate or registration insignia from a vehicle that is displayed for sale;

(12) misuses a dealer's license plate, or a temporary tag before July 1, 2025;

(13) fails to display a dealer's license plate, or temporary tag before July 1, 2025, as required by law;

(14) holds open a title or fails to take assignment of a certificate of title, manufacturer's certificate, or other basic evidence of ownership for a vehicle acquired by the dealer, or fails to assign the certificate of title, manufacturer's certificate, or other basic evidence of ownership for a vehicle sold;

(15) fails to remain regularly and actively engaged in the business of buying, selling, or exchanging vehicles of the type for which the GDN is issued by the department;

(16) violates a provision of Occupations Code, Chapter 2301; Transportation Code Chapters 501 - 504, or 520; a board order or rule; or a regulation of the department relating to the sale, lease, distribution, financing, or insuring of vehicles, including advertising rules under Subchapter F of this chapter (relating to Advertising);

(17) is convicted of an offense that directly relates to the duties or responsibilities of the occupation in accordance with §211.10 of this title (relating to Criminal Offense Guidelines);

(18) is determined by the board or department, in accordance with §215.89 of this title (relating to Fitness), to be unfit to hold a license;

(19) has not assigned at least five vehicles in the prior 12 months, provided the dealer has been licensed more than 12 months;

(20) files or provides a false or forged:

(A) title document, including an affidavit making application for a certified copy of a title; or

(B) tax document, including a sales tax statement or affidavit;

(21) uses or allows use of that dealer's license or location for the purpose of avoiding a provision of Occupations Code, Chapter 2301, 2302, and 2305; Transportation Code, Chapters 503; or other laws;

(22) omits information or makes a material misrepresentation in any application or other documentation filed with the department including providing a false or forged identity document or a false or forged photograph, electronic image, or other document;

(23) fails to remit payment as ordered for a civil penalty assessed by the board or department;

(24) sells a new motor vehicle without a franchised dealer's license issued by the department;

(25) fails to comply with a dealer responsibility under §215.150 of this title (relating to Dealer Authorization to Issue License Plates);

(26) fails to securely store a license plate or fails to destroy a license plate within the time prescribed by statute;

(27) fails to maintain a record of dealer license plates as required under §215.138 of this title (relating to Use of Dealer's License Plates);

(28) fails to file or enter a vehicle transfer notice;

(29) fails to enter a lost, stolen, or damaged license plate in the electronic system designated by the department within the time limit prescribed by rule;

(30) violates any state or federal law or regulation relating to the sale of a motor vehicle;

(31) knowingly fails to disclose that a motor vehicle has been repaired, rebuilt, or reconstructed and issued a title under Transportation Code, §501.100 (relating to Application for Regular Certificate of Title for Salvage Vehicle);

(32) fails to issue a refund as ordered by the board or department;

(33) fails to acquire or maintain a required certificate of occupancy, certificate of compliance, business license or permit, or other official documentation for the licensed location confirming compliance with county or municipal laws or ordinances or other local requirements for a vehicle business;

(34) fails to remove a license plate from a vehicle as required by statute or rule;

(35) fails to keep or maintain records required under Occupations Code, Chapter 2305, Subchapter D or to allow an inspection of these records by the department;

(36) violates a provision of Transportation Code, Chapter 730, Motor Vehicle Records Disclosure Act, including a violation by an employee or other agent; or

(37) issues the wrong type of license plate based on the transaction or vehicle type;

(38) secures a license plate to a sold vehicle but fails to assign the license plate to the vehicle in the system designated by the department; or

(39) voids and reissues the same license plate to a buyer to extend a title or registration filing deadline.

§215.159. License Plate Storage Away from the Licensed Location.

(a) Application Requirements. A dealer may store and manage license plate inventory at one of its licensed locations or at another location if, in a license application, the dealer:

(1) discloses the physical address of the license plate storage location; and

(2) certifies that the license plate storage location satisfies all requirements in subsection (b) of this section.

(b) Location Requirements.

(1) If the license plate storage location is at a licensed location, the location must comply with the requirements of §215.140 of this title (related to Established and Permanent Place of Business Premises Requirements).

(2) If the license plate storage location is not at a licensed location, notwithstanding §215.140 of this title, the location may be shared with other dealers and must:

(A) be located in Texas at an address recognized by the U.S. Postal Service which is capable of receiving U.S. mail, and has an assigned emergency services property address;

(B) be located in a building with a permanent roof and connecting exterior walls on all sides;

(i) a computer;

(ii) internet access;

(iii) a working telephone number listed in the business name or assumed name under which the dealer conducts business;

(iv) a locked and secured room or closet or at least one securely locked, substantially constructed safe or steel cabinet bolted or affixed to the floor or wall in such a way that the safe or steel cabinet cannot be readily removed and of sufficient size to store all license plates in a dealer's possession;

(D) be organized so the license plate inventory for each dealer and licensed location is separate and easily identifiable and is properly assigned to a location in the license plate management system;

(E) have the address clearly visible from the street;

(F) have business hours posted at the main entrance in a manner and place accessible to delivery services and department staff;

(G) be open at least four days per week for at least four consecutive hours per day and may not be open solely by appointment, with the owner or a bona fide employee at the license plate storage location during the posted business hours for purposes of processing license plates, including acceptance of license plate deliveries;

(H) have a telephone that is answered from 8:00 a.m. to 5:00 p.m. weekdays by a bona fide employee, owner, answering service, voicemail service, or answering machine, so that a caller is able to speak to a natural person or leave a message during these hours;

(I) not be in a residence, apartment, hotel, motel, rooming house, provided by a subscription for office or storage space, or in a rented storage unit, but it may be in a portable-type office building if the building meets the requirements of this subsection and is not a readily moveable trailer or other vehicle; and

(J) not be in a restaurant, gas station, or convenience store, unless the location has a separate entrance door that does not require a person to pass through the other business.

(c) Site Visit. The department may visit the location prior to approving a dealer's application to add a license plate storage location and during the term of the license to monitor compliance with department rules as authorized under Occupations Code, §2301.256 and Transportation Code, §503.063(d).

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 9, 2026.

TRD-202604320

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: October 29, 2026

Proposal publication date: April 24, 2026

For further information, please call: (512) 465-4160

SUBCHAPTER E. LESSORS AND LEASE FACILITATORS

43 TAC §215.171

STATUTORY AUTHORITY. The department adopts a repeal to Chapter 215 under Occupations Code, §2301.151, which gives the board authority to regulate the distribution, sale, and lease of motor vehicles and the authority to take any action that is necessary or convenient to exercise that authority; Occupations Code, §2301.152, which authorizes the board to establish the qualifications of license holders, ensure that the distribution, sale, and lease of motor vehicles is conducted as required by statute and board rules, to prevent fraud, unfair practices, discrimination, impositions, and other abuses in connection with the distribution and sale of motor vehicles, and to enforce and administer Occupations Code, Chapter 2301 and Transportation Code, Chapter 503; Occupations Code, §2301.155, which authorizes the board to adopt rules as necessary or convenient to administer Occupations Code, Chapter 2301, and to govern practice and procedure before the board; Occupations Code, §2301.651, which gives the board authority to deny an application for a license, revoke or suspend a license, place on probation, or reprimand a licensee if the applicant or license holder is unfit, makes a material misrepresentation, violates any law relating to the sale, distribution, financing, or insuring of motor vehicles, willfully defrauds a purchaser, or fails to fulfill a written agreement with a retail purchaser of a motor vehicle; Government Code, §411.122(d), which authorizes department access to criminal history record information maintained by DPS; Government Code, §411.12511, as amended by Senate Bill (SB) 2587, 89th Legislature (2025), which authorizes the department to obtain criminal history record information from DPS and the FBI for license applicants, license holders, and representatives whose act or omission would be cause for denying, revoking, or suspending a general distinguishing number or license issued under Transportation Code, Chapter 503, or Occupations Code, Chapters 2301 and 2302; Occupations Code, §55.004, as amended by House Bill (HB) 5629, 89th Legislature, Regular Session, which requires the department to adopt rules for the issuance of a license to military service members, military veterans, or military spouses that allow licensure if the applicant holds a current license issued by another state that is similar in scope to the license in Texas and is in good standing with that state's licensing authority, or has held a license in Texas within the preceding five years; Occupations Code, §2302.051, which authorizes the board to adopt rules as necessary to administer Occupations Code, Chapter 2302; Transportation Code, §503.002, which authorizes the board to adopt rules for the administration of Transportation Code, Chapter 503; Transportation Code, §503.009, which authorizes the board to adopt rules for certain contested cases; Transportation Code, §503.0296, which requires the board to adopt a rule requiring that an applicant for an original or renewal general distinguishing number who proposes to be an independent motor vehicle dealer complete web-based education and training developed or approved by the department; Transportation Code, §503.033, which authorizes the board to adopt rules to prescribe the form of the notice of a surety bond and the procedure by which a claimant may recover against the surety bond; Transportation Code, §503.061, which requires the board to adopt rules regulating the issuance of dealer's license plates; Transportation Code, §503.0631, which requires the department to adopt rules to implement and manage the department's database of dealer-issued buyer's license plates; Transportation Code, §503.0633, which allows the department to establish the maximum number of license plates or sets of license plates a dealer may obtain annually under Transportation Code and Transportation Code, §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and the duties of the department, as well as the statutes referenced throughout this preamble.

CROSS REFERENCE TO STATUTE. This repeal implements Government Code, Chapters 411 and 2001; Occupations Code, Chapters 53, 55, and 2301; and Transportation Code, Chapters 501-503, and 1002.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 9, 2026.

TRD-202604323

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: October 29, 2026

Proposal publication date: April 24, 2026

For further information, please call: (512) 465-4160

43 TAC §§215.175, 215.177, 215.181

The department also adopts amendments under the authority of Transportation Code, §501.0041 and §502.0021; and Government Code, §§2001.004, 2001.039, and 2001.054, in addition to the statutory authority referenced throughout this preamble.

Government Code, §2001.004 requires state agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures. Government Code, §2001.039 requires state agencies to readopt, readopt with amendments, or repeal a rule as the result of reviewing the rule. Government Code, §2001.054 specifies the requirements regarding the grant, denial, renewal, revocation, suspension, annulment, or withdrawal of a license.

CROSS REFERENCE TO STATUTE. These adopted amendments implement Government Code, Chapters 411 and 2001; Occupations Code, Chapters 53, 55, 2301, and 2302; and Transportation Code, Chapters 501-503, 730, 1001-1003, and 1005.

§215.175. Sanctions.

(a) The board or department may:

(1) deny a vehicle lessor or vehicle lease facilitator application;

(2) revoke or suspend a vehicle lessor or vehicle lease facilitator license; or

(3) assess a civil penalty or take other action on a vehicle lessor or vehicle lease facilitator applicant or license holder, or a person engaged in business for which a vehicle lessor or vehicle lease facilitator license is required.

(b) The board or department may take action described in subsection (a) of this section if a vehicle lessor or vehicle lease facilitator applicant, or license holder, or a person engaged in business for which a vehicle lessor or vehicle lease facilitator license is required:

(1) fails to maintain an established and permanent place of business required by §215.177 of this title (relating to Established and Permanent Place of Business Premises Requirements);

(2) fails to maintain records required under this subchapter;

(3) refuses or fails to comply with a request by a representative of the department to examine during the vehicle lessor's or vehicle lease facilitator's posted business hours at the vehicle lessor's or vehicle lease facilitator's licensed location:

(A) a vehicle leasing record required to be maintained by §215.178 of this title (relating to Records Required for Vehicle Lessors and Vehicle Lease Facilitators);

(B) ownership papers for a vehicle owned, leased, or under that vehicle lessor's or vehicle lease facilitator's control; or

(4) refuses or fails to timely comply with a request for records made by a representative of the department;

(5) fails to notify the department in writing by electronically submitting a license amendment in the licensing system designated by the department within 10 days of a change of the vehicle lessor or vehicle lease facilitator license holder's:

(A) mailing address;

(B) physical address;

(D) email address;

(6) fails to notify the department in writing by electronically submitting a license amendment in the licensing system designated by the department within 10 days of a change of the vehicle lessor or vehicle lease facilitator license holder's name, assumed name, management, or ownership;

(7) fails to comply with the fee restrictions or other requirements under Occupations Code, §2301.357 or Chapter 2301, Subchapter L. Vehicle Lessors and Vehicle Lease Facilitators;

(8) fails to maintain advertisement records or otherwise fails to comply with the advertising requirements of:

(A) §215.178; or

(B) Subchapter F of this chapter (relating to Advertising);

(9) violates any law relating to the sale, lease, distribution, financing, or insuring of motor vehicles;

(10) is convicted of an offense that, in accordance with Occupations Code, Chapter 53 and with §211.10 of this title (relating to Criminal Offense Guidelines), directly relates to the duties or responsibilities of the licensed occupation;

(11) is determined by the board or department, in accordance with §215.89 of this title (relating to Fitness), to be unfit to hold a vehicle lessor or vehicle lease facilitator license;

(12) uses or allows use of a vehicle lessor or vehicle lease facilitator license in violation of any law or for the purpose of avoiding any provision of Occupations Code, Chapter 2301;

(13) omits material information or makes a material misrepresentation in any application or other documentation filed with the department including providing a false or forged identity document or a false or forged photograph, electronic image, or other document; or

(14) violates a provision of Transportation Code, Chapter 730, Motor Vehicle Records Disclosure Act, including a violation by an employee or other agent.

(c) The board or department may take action on a vehicle lessor's license or assess civil penalties for the vehicle lessor's failure to notify the department in writing by electronically submitting a license amendment in the licensing system designated by the department within 10 days of any change, addition, or deletion to the list of vehicle lease facilitators with whom the vehicle lessor conducts business, including any change to a vehicle lease facilitator's mailing address, physical address, telephone number, or email address.

(d) The board or department may take action on a vehicle lease facilitator's license or assess civil penalties for the failure to notify the department in writing within 10 days by electronically submitting a license amendment in the licensing system designated by the department of any change, addition, or deletion to the list of vehicle lessors for whom the vehicle lease facilitator conducts business, including any change to a vehicle lessor's mailing address, physical address, telephone number, or email address.

(e) The board or department may take action on a vehicle lessor's or vehicle lease facilitator's license if the vehicle lessor or vehicle lease facilitator accepts a fee from a dealer, directly or indirectly, for referring a customer who purchases or considers purchasing a motor vehicle.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 9, 2026.

TRD-202604322

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: October 29, 2026

Proposal publication date: April 24, 2026

For further information, please call: (512) 465-4160

SUBCHAPTER F. ADVERTISING

43 TAC §§215.241, 215.243, 215.269

STATUTORY AUTHORITY. The department adopts repeals to Chapter 215 under Occupations Code, §2301.151, which gives the board authority to regulate the distribution, sale, and lease of motor vehicles and the authority to take any action that is necessary or convenient to exercise that authority; Occupations Code, §2301.152, which authorizes the board to establish the qualifications of license holders, ensure that the distribution, sale, and lease of motor vehicles is conducted as required by statute and board rules, to prevent fraud, unfair practices, discrimination, impositions, and other abuses in connection with the distribution and sale of motor vehicles, and to enforce and administer Occupations Code, Chapter 2301 and Transportation Code, Chapter 503; Occupations Code, §2301.155, which authorizes the board to adopt rules as necessary or convenient to administer Occupations Code, Chapter 2301, and to govern practice and procedure before the board; Occupations Code, §2301.651, which gives the board authority to deny an application for a license, revoke or suspend a license, place on probation, or reprimand a licensee if the applicant or license holder is unfit, makes a material misrepresentation, violates any law relating to the sale, distribution, financing, or insuring of motor vehicles, willfully defrauds a purchaser, or fails to fulfill a written agreement with a retail purchaser of a motor vehicle; Government Code, §411.122(d), which authorizes department access to criminal history record information maintained by DPS; Government Code, §411.12511, which authorizes the department to obtain criminal history record information from DPS and the FBI for license applicants, license holders, and representatives whose act or omission would be cause for denying, revoking, or suspending a general distinguishing number or license issued under Transportation Code, Chapter 503, or Occupations Code, Chapters 2301 and 2302; Occupations Code, §2302.051, which authorizes the board to adopt rules as necessary to administer Occupations Code, Chapter 2302; Transportation Code, §503.002, which authorizes the board to adopt rules for the administration of Transportation Code, Chapter 503; Transportation Code, §503.009, which authorizes the board to adopt rules for certain contested cases; Transportation Code, §503.0296, which requires the board to adopt a rule requiring that an applicant for an original or renewal general distinguishing number who proposes to be an independent motor vehicle dealer complete web-based education and training developed or approved by the department; Transportation Code, §503.033, which authorizes the board to adopt rules to prescribe the form of the notice of a surety bond and the procedure by which a claimant may recover against the surety bond; Transportation Code, §503.061, which requires the board to adopt rules regulating the issuance of dealer's license plates; Transportation Code, §503.0631, which requires the department to adopt rules to implement and manage the department's database of dealer-issued buyer's license plates; Transportation Code, §503.0633, which allows the department to establish the maximum number of license plates or sets of license plates a dealer may obtain annually under Transportation Code; and Transportation Code, §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and the duties of the department, as well as the statutes referenced throughout this preamble.

The department also adopts repeals under the authority of Transportation Code, §501.0041 and §502.0021; and Government Code, §§2001.004, 2001.039, and 2001.054, in addition to the statutory authority referenced throughout this preamble.

Government Code, §2001.004 requires state agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures. Government Code, §2001.039 requires state agencies to readopt, readopt with amendments, or repeal a rule as the result of reviewing the rule. Government Code, §2001.054 specifies the requirements regarding the grant, denial, renewal, revocation, suspension, annulment, or withdrawal of a license.

CROSS REFERENCE TO STATUTE. These repeals implements Government Code, Chapters 411 and 2001; Occupations Code, Chapters 2301 and 2302; and Transportation Code, Chapters 501-503, 1001-1003, and 1005.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 9, 2026.

TRD-202604325

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: October 29, 2026

Proposal publication date: April 24, 2026

For further information, please call: (512) 465-4160

43 TAC §§215.242, 215.244, 215.246, 215.270

STATUTORY AUTHORITY. The department adopts amendments to Chapter 215 under Occupations Code, §2301.151, which gives the board authority to regulate the distribution, sale, and lease of motor vehicles and the authority to take any action that is necessary or convenient to exercise that authority; Occupations Code, §2301.152, which authorizes the board to establish the qualifications of license holders, ensure that the distribution, sale, and lease of motor vehicles is conducted as required by statute and board rules, to prevent fraud, unfair practices, discrimination, impositions, and other abuses in connection with the distribution and sale of motor vehicles, and to enforce and administer Occupations Code, Chapter 2301 and Transportation Code, Chapter 503; Occupations Code, §2301.155, which authorizes the board to adopt rules as necessary or convenient to administer Occupations Code, Chapter 2301, and to govern practice and procedure before the board; Occupations Code, §2301.651, which gives the board authority to deny an application for a license, revoke or suspend a license, place on probation, or reprimand a licensee if the applicant or license holder is unfit, makes a material misrepresentation, violates any law relating to the sale, distribution, financing, or insuring of motor vehicles, willfully defrauds a purchaser, or fails to fulfill a written agreement with a retail purchaser of a motor vehicle; Government Code, §411.122(d), which authorizes department access to criminal history record information maintained by DPS; Government Code, §411.12511, which authorizes the department to obtain criminal history record information from DPS and the FBI for license applicants, license holders, and representatives whose act or omission would be cause for denying, revoking, or suspending a general distinguishing number or license issued under Transportation Code, Chapter 503, or Occupations Code, Chapters 2301 and 2302; Occupations Code, §2302.051, which authorizes the board to adopt rules as necessary to administer Occupations Code, Chapter 2302; Transportation Code, §503.002, which authorizes the board to adopt rules for the administration of Transportation Code, Chapter 503; Transportation Code, §503.009, which authorizes the board to adopt rules for certain contested cases; Transportation Code, §503.0296, which requires the board to adopt a rule requiring that an applicant for an original or renewal general distinguishing number who proposes to be an independent motor vehicle dealer complete web-based education and training developed or approved by the department; Transportation Code, §503.033, which authorizes the board to adopt rules to prescribe the form of the notice of a surety bond and the procedure by which a claimant may recover against the surety bond; Transportation Code, §503.061, which requires the board to adopt rules regulating the issuance of dealer's license plates; Transportation Code, §503.0631, which requires the department to adopt rules to implement and manage the department's database of dealer-issued buyer's license plates; Transportation Code, §503.0633, which allows the department to establish the maximum number of license plates or sets of license plates a dealer may obtain annually under Transportation Code; and Transportation Code, §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and the duties of the department, as well as the statutes referenced throughout this preamble.

Government Code, §2001.004 requires state agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures. Government Code, §2001.039 requires state agencies to readopt, readopt with amendments, or repeal a rule as the result of reviewing the rule. Government Code, §2001.054 specifies the requirements regarding the grant, denial, renewal, revocation, suspension, annulment, or withdrawal of a license.

CROSS REFERENCE TO STATUTE. These adopted amendments implement Government Code, Chapters 411 and 2001; Occupations Code, Chapters 2301 and 2302; and Transportation Code, Chapters 501-503, 730, 1001, and 1002.

§215.244. Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Advertisement--

(A) An oral, written, graphic, or pictorial statement or representation made in the course of soliciting business, including, but not limited to a statement or representation:

(i) made in a newspaper, magazine, or other publication;

(ii) contained in a notice, sign, poster, display, circular, pamphlet, business card, or letter;

(iii) aired on the radio;

(iv) broadcast on the internet or television;

(v) streamed via an online service;

(vi) displayed on an internet website, social media platform, or other digital application or platform; or

(vii) transmitted electronically.

(B) Advertisement does not include direct communication between a person or person's representative and a prospective purchaser.

(2) Advertising provision--

(A) A provision of Occupations Code, Chapter 2301, relating to the regulation of advertising; or

(B) A rule relating to the regulation of advertising, adopted pursuant to the authority of Occupations Code, Chapter 2301.

(3) Bait advertisement--An alluring but insincere offer to sell or lease a product of which the primary purpose is to obtain a lead to a person interested in buying or leasing merchandise of the type advertised and to switch a consumer from buying or leasing the advertised product in order to sell or lease some other product at a higher price or on a basis more advantageous to the dealer.

(4) Balloon payment--Any scheduled payment made as required by a consumer credit transaction that is more than twice as large as the average of all prior scheduled payments except the down payment.

(5) Clear and conspicuous--The statement, representation, or term being disclosed is of such size, color, contrast, and audibility and is presented so as to be readily noticed and understood. All language and terms, including abbreviations, shall be used in accordance with their common or ordinary usage and meaning.

(6) Dealership addendum--A form that is displayed on a window of a motor vehicle when a dealership installs special features, equipment, parts, or accessories, or charges for services not already compensated by the manufacturer or distributor for work required to prepare a motor vehicle for delivery to a buyer.

(A) The purpose of the addendum is to disclose:

(i) that it is supplemental;

(ii) any added feature, service, equipment, part, or accessory, including the retail price, charged and added by the dealership;

(iii) any additional charge to the selling price such as additional dealership markup; and

(iv) the total dealer selling price.

(B) The dealership addendum form shall not be deceptively similar in appearance to the Monroney label, as defined by paragraph (13) of this section.

(7) Demonstrator--A new motor vehicle that is currently in the inventory of the automobile dealership and used primarily for test drives by customers and for other purposes designated by the dealership.

(8) Disclosure--Required information that is clear, conspicuous, and accurate.

(9) Distributor Suggested Retail Price (DSRP)--Means the total price shown on the Monroney Label as specified by subparagraph (D) of paragraph (13) of this section.

(10) Factory executive/official motor vehicle--A new motor vehicle that has been used exclusively by an executive or official of the dealer's franchising manufacturer, distributor, or their subsidiaries.

(11) Limited rebate--A rebate that is not available to every consumer purchasing or leasing a motor vehicle because qualification for receipt of the rebate is conditioned or restricted in some manner. A rebate conditioned or restricted to purchasers who are residents of the contiguous United States is not a limited rebate.

(12) Manufacturer's Suggested Retail Price (MSRP)--The total price shown on the Monroney Label as specified by subparagraph (D) of paragraph (13) of this section.

(13) Monroney Label--The label required by the Automobile Information Disclosure Act, 15 U.S.C. §§1231 - 1233, to be affixed to the windshield or side window of certain new motor vehicles delivered to the dealer and that contains information about the motor vehicle, including, but not limited to:

(A) the retail price of the motor vehicle suggested by the manufacturer or distributor, as applicable;

(B) the retail delivered price suggested by the manufacturer or distributor, as applicable, for each accessory or item of optional equipment, physically attached to the motor vehicle at the time of its delivery to a dealer, which is not included within the price of the motor vehicle as stated in subparagraph (A) of this paragraph;

(C) the amount charged, if any, to a dealer for the transportation of the motor vehicle to the location at which it is delivered to the dealer; and

(D) the total of the amounts specified pursuant to subparagraphs (A), (B), and (C) of this paragraph.

(14) Online service--A network that connects computer users.

(15) Rebate or cash back--A sum of money applied to the purchase or lease of a motor vehicle or refunded after full payment has been rendered for the benefit of the purchaser.

(16) Savings claim or discount--An offer to sell or lease a motor vehicle at a reduced price, including, but not limited to, a manufacturer's or distributor's customer rebate, a dealer discount, or a limited rebate.

(17) Subsequent violation--Conduct that is the same or substantially the same as conduct the department has previously alleged in a notice of an opportunity to cure to be a violation of an advertising provision.

§215.270. Enforcement.

(a) The department may file a Notice of Department Decision against a license holder alleging a violation of an advertising provision pursuant to Occupations Code, §2301.203, provided the department can show:

(1) that the license holder who allegedly violated an advertising provision has received from the department a notice of an opportunity to cure the violation by email and certified mail, return receipt requested, and that the notice complied with subsection (b) of this section; and

(2) that the license holder committed a subsequent violation of the same advertising provision.

(b) An effective notice of an opportunity to cure issued under subsection (a)(1) of this section must:

(1) state that the department has reason to believe that the license holder violated an advertising provision and must identify the provision;

(2) set forth the facts upon which the department bases its allegation of a violation; and

(3) state that if the license holder commits a subsequent violation of the same advertising provision, the department will file a Notice of Department Decision under §224.56 of this title (relating to Notice of Department Decision).

(c) A cure is made solely for the purpose of settling an allegation and is not an admission of a violation of these rules; Occupations Code, Chapter 2301; or other law.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 9, 2026.

TRD-202604324

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: October 29, 2026

Proposal publication date: April 24, 2026

For further information, please call: (512) 465-4160

CHAPTER 217. VEHICLE TITLES AND REGISTRATION

INTRODUCTION. The Texas Department of Motor Vehicles (department) adopts amendments to 43 Texas Administrative Code (TAC) Chapter 217, Vehicle Titles and Registration, Subchapter A, Motor Vehicle Titles, §§217.3 - 217.5, §217.7, and §217.12; amendments to Subchapter B, Motor Vehicle Registration, §§217.26 - 217.28, 217.40, 217.41, 217.47, 217.52, 217.54, 217.56, and 217.57, and repeal of §217.37; amendments to Subchapter C, Registration and Titling Systems, §217.72 and §217.74, and repeal of §217.73; amendments to Subchapter D, Nonrepairable and Salvage Motor Vehicles, §217.83 and §217.84; amendments to Subchapter F, Motor Vehicle Records, §§217.122, 217.124 - 217.127; amendments to Subchapter G, Inspections, §217.143; amendments to Subchapter J, Performance Quality Recognition Program, §217.204; and amendments to Subchapter L, Assembled Vehicles, §217.402 and §217.404.

The department adopts §§217.3, 217.4, 217.5, 217.7, 217.12, 217.26, 217.27, 217.28, 217.54, 217.57, 217.72, 217.74, 217.84, 217.122, 217.124, 217.125, 217.126, 217.127, 217.143, 217.204, 217.402, and 217.404; and adopts the repeal of §217.37, and §217.73 without changes to the proposed text as published in the June 26, 2026, issue of the Texas Register (51 TexReg 4113) and they will not be republished. The department adopts amendments to §§217.40, 217.41, 217.47, 217.52, 217.56, and 217.83 with changes to the proposed text as published in the in the June 26, 2026, issue of the Texas Register (51 TexReg 4113). These rules will be republished. The department withdraws the proposed revisions to §§217.1, 217.6, 217.21, 217.32, 217.43, 217.45, 217.71, 217.81, 217.121, 217.141, 217.161, 217.181, 217.201, 217.301, and 217.401 and therefore retains the existing text of these sections.

The department adopts the amendments and repeals to update and streamline the rule text, bringing it into compliance with statute and with current department procedure; to update the language to remove unnecessary or obsolete requirements; to modernize language and improve readability through the use of consistent terminology; and to more specifically describe the department's methods and procedures.

Amendments are also adopted to align the rules with Transportation Code, §502.0024, which requires the department to develop a system of registration allowing owners of trailers, semitrailers or pole trailers with a gross weight of 7,500 pounds or less to register such trailers for an extended registration period not to exceed five years.

REASONED JUSTIFICATION.

Subchapter A. Motor Vehicle Titles

§217.3

Adopted amendments to §217.3 delete §217.3(2) because it is a confusing and inconsistent description of the registration requirements for tractors under Transportation Code, Chapter 502. Registration of a tractor under Transportation Code, Chapter 502 is dependent on how the tractor is used on public roads, regardless of whether it is owned by any particular entity or meets the specific definition of a "road tractor" in Transportation Code, §502.001. The remaining paragraphs of §217.3 are adopted to be renumbered to accommodate the deletion of §217.3(2).

§217.4

An adopted amendment to §217.4(d)(2) deletes "if applicable" and replaces it with the phrase "unless exempt under Transportation Code, §502.072(c)." The adopted amendment provides clarity and ease of reference by citing the statute that details the limited circumstances when an odometer disclosure statement is not necessary in the application for a title for a motor vehicle.

§217.5

Adopted amendments to §217.5(a)(4)(C) delete "original" and replace that term with "copy of" where pertinent to eliminate the requirement to provide the original version of the bond release letter to align with Texas Transportation Code, §501.030, which does not require an applicant to produce the original version of the bond release letter. This adopted change also aligns with the department's current practice of accepting a copy of the bond release letter.

An adopted amendment to §217.5(b) adds language limiting the department's ability to reject a transaction because the supporting documents that provide evidence of ownership have been altered. Under the adopted language, the department would only be able to reject documents with altered text when the text was originally printed by the department, person, or governmental entity issuing the document and was later altered. The current rule language could be read to imply that any alteration to any portion of a registration receipt, title, or other evidence of ownership set out in §217.5(a)(2) is a valid reason for rejection, which does not reflect current department practices. However, alterations to text printed by the document's issuer indicate fraud. If corrections are necessary, the document's issuer can reissue a new document. To prevent fraud and forgery, an adopted amendment to §217.5(b) adds a sentence stating that if a digit printed on a document by the document's issuer has been altered, the department will reject the transaction. On the other hand, the information provided by transferors may require correction due to mistakes that do not indicate fraud, so the adopted amendments to §217.5(b) allow correction to text in the document if the corrected text was not originally printed on the document by the issuer. The adopted amended language aligns with the department's policy of allowing statements of fact to correct alterations of portions of documents filled out by a title applicant or seller. An additional adopted amendment to §217.5(b) deletes the word "other" before "evidence of ownership" to align with §217.5(a)(2), which uses "evidence of ownership" rather than "other evidence of ownership."

An adopted amendment to §217.5 adds a new subsection (c) titled "Corrected documentation," moves language from former subsections (b)(1), (b)(3), and (b)(4) under adopted new subsection (c), and renumbers accordingly. Former subsection (b)(2) was redundant with the adopted amended language in §217.5(b) regarding altered issuer-printed digits, so the adopted amendments delete subsection (b)(2). The adopted amendments reletter the remaining subsections as necessary to accommodate new subsection §217.5(c). These amendments are adopted to improve organization within §217.5 because current §217.5(b)(1), (b)(3), and (b)(4) all describe different forms of acceptable document correction.

§217.7

Under §217.104(d) of this title, regarding Electronic Lien Title Program, when a lien that is recorded electronically instead of on a paper title is satisfied, the lienholder notifies the department and specifies the address to which the department should send the paper title. In accordance with §217.104(d), the address the lienholder gives the department may be for a recipient other than the owner of record when a party other than the owner of record has satisfied the lien. The department then removes the lien from the vehicle record, generates a paper title in the name of the owner of record, and mails it to the address specified by the lienholder. An adopted amendment to §217.7 creates a new subsection, §217.7(b), to address instances in which an owner or their agent requests a certified copy of the vehicle title, but the department's records indicate the title was issued to a third party at the direction of a lienholder following the release of an electronic lien. Adopted new §217.7(b) requires the owner or their agent to provide a written statement from either the third party to whom the department sent the title, disclaiming any interest in the vehicle, or a from the lienholder, stating that the title was incorrectly released to the third party. Adopted new §217.7(b) aligns with current department procedures and allows the department to confirm that the third party that received the title has no interest in the vehicle before the department would issue a certified copy of title to the owner of record. The remaining subsections under this section are re-lettered to accommodate new §217.7(b).

Adopted amended §217.7(c)(3) provides an additional option for submitting an application for a certified copy of title under a power of attorney by allowing the use of an expired photo identification of an owner or lienholder if the power of attorney is notarized by a Texas notary public. A notary public is a commissioned public officer who is required to confirm a person's identity for signature on the documents they notarize. Under the adopted amendments that create a new re-lettered §217.7(c)(3)(A), the notarized power of attorney submitted with an expired photo identification offers an option for people applying for a certified copy of title. It guards against potential fraud while providing flexibility in situations where the owner or lienholder does not have a current photo identification, such as due to illness or incapacitation. The adopted amendments remove a reference to §217.7(b)(1) and (2) from re-lettered §217.7(c)(3) and delete §217.7(b)(3)(C), because they are redundant with the reference to the same rule provisions in adopted new re-lettered §217.7(c)(3)(A). The adopted amendments re-letter the remaining subparagraphs of re-lettered §217.7(c)(3) to accommodate adopted new §217.7(c)(3)(A). Adopted amendments to re-lettered §217.7(c)(3)(B) and (C) add language clarifying which requirements apply when the power of attorney names an individual and which apply when it names an entity, without changing the underlying identification requirements.

§217.12

An adopted amendment to §217.12 deletes §217.12(a) and re-letters the remaining subsections accordingly. This adopted amendment eliminates text that is unnecessary because it is just a general statement that summarizes the mandate provided in the statutes administered by the department and county to collect required fees for services.

Subchapter B. Motor Vehicle Registration

§217.26

An adopted amendment to §217.26(c)(2)(B)(i) clarifies the photo identification requirements to register a motor vehicle for a lessee where the lessee is not an individual but a legal entity. The adopted amendments require the person signing the application for the lessee to produce a current photo identification along with a letter of authorization on the lessee's letterhead or a printed business card of the lessee. Under the adopted amendments, either the letter of authorization or the business card must contain the name of the person signing the application that matches their photo identification. This requirement would reduce the opportunity for fraud by lessees impersonating corporate entities.

§217.27

Adopted amendments to §217.27(c)(2) align the rule with statute in Transportation Code, §502.0026 and with adopted amended §217.54 of this title (relating to Extended Registration). The adopted amendments capture forms of extended registration that are not currently mentioned in the rule, for clarity and ease of reference for readers.

§217.28

An adopted amendment to §217.28(f) replaces "one week" with "five consecutive business days" to more specifically define "a protracted period of time" for closure of a county assessor-collector's office under Transportation Code, §502.407.

§217.37

This section, describing the charging of required fees provided in statute by the department and county, is adopted for repeal because it is unnecessary as it is just a general statement that summarizes the mandate provided in the statutes administrated by the department and county to collect required fees for services.

§217.40

In response to comments, the department did not adopt the proposed amendments to delete §217.40(a) and re-letter the remaining subsections accordingly, because stakeholders stated that §217.40(a) provides clarity and guidance for readers who are not familiar with all of the department's statutes. An adopted amendment to §217.40(b)(3) adds a provision requiring an applicant applying for a 72- or 144-hour permit for a commercial motor vehicle, motor bus, trailer, or semi-trailer to provide a United States Department of Transportation (USDOT) number. This adopted amendment aligns with current department procedures that were put in place as a fraud deterrent to prevent applications using false or stolen information. The adopted amendment helps to ensure the applications are from legitimate applicants seeking such permits for use consistent with Transportation Code, §502.094. An adopted amendment to §217.40(c)(2)(A) deletes the vehicle categories listed in clauses (i) through (v) because clauses (i) - (iii) and (v) are duplicative of Texas Transportation Code, §502.095(d), and clause (iv) describes a vehicle class that is not eligible for a thirty-day license plate under the statute.

§217.41

The department received comments that the purpose statement in §217.41(a) was helpful and clarifying for readers. In response to these comments, the department did not adopt the proposed deletion of §217.41(a) and the relettering of the remaining subsections. An adopted amendment to §217.41(b)(2)(A)(ii) deletes the reference to "Subsection (b-1)" and replaces it with the reference to Transportation Code, §504.202(b-1). The adopted amendment corrects a citation error that did not properly reference the provision in the Transportation Code.

§217.47

In response to comments from stakeholders that the language proposed for deletion in §217.47(a) is helpful to readers, the department did not adopt the proposed amendments to §217.47(a) and the relettering of other subsections in §217.47.

An adopted amendment to §217.47(c) deletes §217.47(c)(7) and (8) since those provisions pertain to notifications and costs between the department and the Department of Public Safety and the Texas Commission on Environmental Quality that are governed by written agreements as authorized under Transportation Code, §502.047, and not by the department's rules.

§217.52

In response to comments from stakeholders that the language proposed for deletion in §217.52(a) is helpful to readers, the department did not adopt the proposed amendments to §217.52(a) and the relettering of other subsections in §217.52.

Adopted amendments to §217.52(h) delete three license plate categories (T-Plates license plates; luxury license plates; and freedom license plates); rename the "custom license plates" category to "custom personalized specialty license plates"; and provide new descriptions for the "custom personalized specialty license plates," "background-only license plates," and "embossed, personalized specialty license plates" categories. These adopted amendments eliminate outdated license plate categories that are no longer in use and update outdated descriptions of license plate categories to ensure program accuracy and to align the rule with current department practices. An adopted amendment to §217.52(h)(9) deletes §217.52(h)(6)(A) as it is duplicative of Transportation Code, §504.853(c), and re-letters the remaining paragraphs. Additional adopted amendments to §217.52 change cross-references throughout the section to account for the re-numbering of paragraphs based on adopted amendments to §217.52.

§217.54

Adopted amendments to §217.54 rename the section title and create two subsections to address extended registration of commercial fleet vehicles and certain trailers. The adopted amendments align the department's rules with Transportation Code, §502.0023 and §502.0024. Transportation Code, §502.0023 creates extended registration of commercial fleet vehicles registration for a period of not less than one year or more than eight years. Transportation Code, §502.0024 requires the department to develop an extended registration process to allow owners of trailers, semitrailers or pole trailers with a gross weight of 7,500 pounds or less to register such trailers for a period not to exceed five years. An adopted amendment to §217.54 retitles the section from "Registration of Fleet Vehicles" to "Extended Registration" to more accurately describe the scope of the rule as amended to include the extended registration of both commercial fleet vehicles and certain trailers as provided under Transportation Code, §502.0023 and §502.0024. An adopted amendment creates new §217.54(a), titled "Extended Registration of Commercial Fleet Vehicles," and renumbers the existing subsections as paragraphs under the adopted new subsection (a).

An adopted amendment to renumbered §217.54(a)(5)(B) adds an exception to the requirement that the registration receipt for a token trailer be carried in the vehicle and available to law enforcement. This amendment aligns the rule with Transportation Code, §502.0023(d-1) and Transportation Code, §502.255(i), which do not require that the registration receipt be maintained in the token trailer so long as the trailer displays a license plate issued for the registration.

Adopted amendments create new §217.54(b), titled "Extended Registration of Certain Trailers," to align the rule with Transportation Code, §502.0024. Adopted new §217.54(b)(1) clarifies for ease of the reader's reference that trailers, semitrailers, or pole trailers that have an actual gross weight or registered gross weight of 7,500 pounds or less are eligible for extended registration, in alignment with Transportation Code, §502.0024. Adopted new §217.54(b)(2) details the contents of the application, the required supporting documents to show evidence of financial responsibility as required by Transportation Code, §502.046, and the required fees associated with the application. Adopted new §217.54(b)(3) details an owner's options for selecting the extended registration period, including requirements that the registration period be between one and five years, begin on the first day of a calendar month, and end on the last day of a calendar month, to align with Transportation Code, §502.0024 and to make data processing of the registration period simpler for the department's registration and titling system. Adopted new §217.54(b)(4) details the issuance of the registration insignia, registration receipt and license plate for each extended registration trailer, while prohibiting transfer of the registration receipt or insignia between vehicles, owners or registrants to prevent fraud and to make license plate tracking easier for law enforcement. Adopted new §217.54(b)(5) provides that an extended registration expires if it is not renewed prior to the end of the expiration period, but allows for the owner, after expiration, to either register the trailer with single-year registration, or to request extended registration, to create flexibility for owners.

§217.56

In response to comments from stakeholders that the language proposed for deletion in §217.56(a) is helpful to readers, the department did not adopt the proposed amendments to §217.56(a) and the relettering of other subsections in §217.56.

Adopted amendments to §217.56(b) delete the definition of "Regional Service Center" because the term was only utilized in reference to an outdated physical approval process, and update the definition of "temporary cab card" to more accurately describe the timing for expiration of the cards. An adopted amendment to §217.56(c)(2)(B), updates the reference to the current version of the International Registration Plan to align with the department's adoption of International Registration Plan under Transportation Code, §502.091.

Additional adopted amendments to §217.56(c) account for the department's streamlined temporary cab card process. Adopted amendments to §217.56(c)(2)(C) modernize the rule to reflect electronic form submission for apportioned registration and clarify that applicants must provide the department with documents and information required by the International Registration Plan. Additional adopted amendments to §217.56(c)(2)(C) modernize the rule by striking language that describes the calculation of IRP fees as a separate step, since the electronic system calculates the fees automatically. The adopted amendments also remove the numbering designation from the remaining subparagraph (i) to accommodate the deletion.

Adopted amendments to §217.56(c)(2)(D) broaden the scope of the paragraph to incorporate all application requirements necessary for review and issuance of registration, consolidate language regarding computation of fees, eliminate unnecessary language related to an outdated paper payment process since IRP applications are now submitted electronically, and include a modernizing reference to the department's issuance of cab cards at the time the application is approved. The adopted amendments also clarify that the issuance of license plates, temporary cab cards, and cab cards is subject to the vehicle being eligible for apportioned registration.

Adopted amendments §217.56(c)(2)(F) allow a registrant, during an audit by the department, to submit operational records in any format, removing the requirement that the records be submitted in number order and sequence by date. The adopted amendments to §217.56(c)(2)(F) provide more efficient and flexible document submission options for the registrant. Similarly, adopted amendments to §217.56(c)(2)(J)(ii) expand the options for conducting a conference between the department and a registrant to discuss an adopted fee assessment, registration cancellation, or revocation of registration. The adopted amendments to §217.56(c)(2)(J)(ii) include telephonic and videoconferencing as options to allow more flexibility to the registrant and to align with current department processes. The adopted amendments to §217.56(c)(2)(H) substitute "registrant" for "carrier" for consistency with the terminology used in the remainder of §217.56(c)(2)(J).

Adopted amendments delete §217.56(c)(2)(M) in its entirety because it describes an outdated process that the department has eliminated. The department currently issues a temporary cab card upon approval of an application for apportioned registration and no longer requires paper submission of original documents. An adopted amendment to §217.56(c)(2)(L) removes a cross-reference to §217.56(c)(2)(M) since the department adopted its deletion.

§217.57.

The adopted amendments to §217.57 remove language describing the department's obligation to submit an annual report to the legislature, because it is duplicative of the requirements specified in Transportation Code, §502.004(c).

Subchapter C. Registration and Title Systems

§217.72

An adopted amendment creates new §217.72(a) by transferring text from §217.73 regarding the agreement that the counties enter into with the department as a precondition to receiving automated equipment from the department. These adopted amendments consolidate and streamline all requirements pertaining to automated equipment for the registration and title system into one new subsection titled "Automated Equipment Agreement" for ease of reference. Additional adopted amendments re-letter the remaining subsections and references to subsections within §217.72 as necessary to accommodate adopted new §217.72(a).

§217.73

This section, which describes the requirement for and contents of a written agreement between the department and a county for the county to receive automated equipment, is adopted to be repealed, with its text consolidated into §217.72 to put into one rule all requirements and conditions for counties to obtain automated equipment for the registration and title system.

§217.74

An adopted amendment to §217.74(c) deletes the outdated requirement for active motor vehicle dealers to secure webDealer access in advance of July 1, 2025, and the department's option to secure access on behalf of a motor vehicle dealer in the county in which the motor vehicle dealer is located if the motor vehicle dealer is unable to obtain access to the system by April 30, 2025. This provision was adopted as part of the department's implementation of HB 718, 88th Legislature, Regular Session (2023), which enacted Transportation Code, §520.0055 mandating motor vehicle dealers to submit title and registration applications through the department's electronic system, also known as webDealer. The provision was a temporary measure to ensure motor vehicle dealers came into compliance with the statutory mandate. The deadlines have since passed and the provision is no longer necessary.

Similarly, adopted amendments to §217.74(g) delete the outdated deadline for existing motor vehicle dealers to complete webDealer training and the outdated date to define newly licensed motor vehicle dealers for purposes of webDealer training, both of which passed on April 30, 2025. Another adopted amendment deletes §217.74(g)(2) and renumbers the paragraphs under §217.74(g) accordingly, because it reflects an outdated requirement that is no longer relevant. The dates and webDealer training exemption were adopted as part of the department's implementation of HB 718, 88th Legislature, Regular Session (2023), which enacted Transportation Code, §520.0055 that mandated motor vehicle dealers to submit title and registration applications through webDealer. The dates and exemption were temporary measures to ensure motor vehicle dealers came into compliance with the training requirements. The dates have since passed, so the rule provision is no longer necessary.

Subchapter D. Nonrepairable and Salvage Motor Vehicles

§217.83

The department received comments that the proposed amendments to §217.83, which substituted statutory citations for descriptions and explanations of the statutory requirements, could confuse readers seeking to apply for salvage and non-repairable vehicle titles. The department therefore did not adopt these amendments. The remaining adopted amendment to §217.83 fixes a cross-reference in §217.83(c)(2) to correct an error.

§217.84

Adopted amendments to §217.84(d) amend §217.84(d)(2) and delete §217.84(d)(3) to substitute a reference to Transportation Code, §501.0925 in place of the text describing the documentation requirements an insurance company must follow to obtain a nonrepairable or salvage vehicle title since those requirements are duplicative of Transportation Code, §501.0925. Adopted amendments renumber the remaining paragraphs of §217.84(d). An adopted amendment to adopted renumbered §217.84(d)(4) references Transportation Code, §501.0935 to clarify the statutory source of the required notices.

Subchapter F. Motor Vehicle Records

§217.122

An adopted amendment to §217.122(b)(13) modernizes the rule by replacing the term and definition of "eTAG file" with the term and definition of "ePLATE file." HB 718, 88th Legislature, Regular Session (2023), amended Transportation Code, Chapter 503 by replacing the use of temporary tags in motor vehicle dealer operations with categories of license plates and requiring the department to develop a new license plate system to regulate the distribution and use of license plates. Since the implementation of HB 718, the department has transitioned to creating and maintaining records in the new license plate system of motor vehicle dealers. The adopted definition of "ePLATE file" describes the contents of the license plate records maintained by the department that can be accessed through procedures outlined in the rules described in Subchapter F, comprised of three bulk files containing records of license plates from a motor vehicle dealer and vehicle transfer notifications.

§217.124

An adopted amendment to §217.124(d)(3) replaces "eTAG" with "ePLATE" to be consistent with the adopted amendment to §217.122(b)(13) that replaces the term and definition of "eTAG" with "ePLATE."

§217.125

An adopted amendment to §217.125 creates new §217.125(b)(1) to require that a requestor of personal information from motor vehicles records under the permitted disclosures of certain personal information in Transportation Code, §730.007(a)(2)(B)(ii) submit proof of a complaint of motor vehicle theft filed with a law enforcement agency or a report created by a law enforcement agency describing a complaint of a motor vehicle theft. The adopted amendment prevents inappropriate release of motor vehicle record information by requiring the requestor to provide documentation to show the genuineness of the request. The adopted amendments also align the rule with current department procedures. Additional adopted amendments to §217.125 renumber the remaining paragraphs in subsection (b) to accommodate adopted new §217.125(b)(1).

§217.126

An adopted amendment to §217.126(a) substitutes a reference to Transportation Code, §730.013 in place of text that duplicates that statute. Similarly, an adopted amendment deletes §217.126(c) as it is duplicative of Transportation Code, §730.013. An adopted amendment re-letters the remaining subsection accordingly.

§217.127

Adopted amendments to §217.127 delete §217.127(b) and consolidate its text into §217.127(a) to streamline the rule. An adopted amendment re-letters the remaining subsection accordingly.

Subchapter G. Inspections

§217.143

Adopted amendments to §217.143 delete §217.143(b) and re-letter the remaining subsections accordingly. The requirement for a custom vehicle or street rod to pass a safety inspection performed by a master technician is unnecessary in §217.143(b) since a custom vehicle and street rod fall within the definition of "assembled vehicle" under Transportation Code, §731.001(a)(4) and would already require a passing safety inspection from a master technician under §217.143(a) prior to titling of the vehicle.

Subchapter J. Performance Quality Recognition

§217.204

Adopted amendments to §217.204(a) streamline the existing text of the subsection for easier readability without changing the meaning.

Subchapter L. Assembled Vehicles

§217.402

An adopted amendment to §217.402 creates new §217.402(c) by incorporating the text from §217.401(b) to consolidate it with the other definitions for Subchapter L, because it defines "a glider kit issued a title with a ‘RECONSTRUCTED' remark" as a "replica."

§217.404

An adopted amendment to §217.404(a)(7) adds "if applicable" to the requirement for submission of a weight certificate with an application for initial titling of an assembled vehicle, since the department does not record and maintain the weights of motorcycles and mopeds in the department's system. The adopted amendment to §217.404(a)(7) clarifies that a weight certificate is an optional supporting document to the title application.

CHANGES AT ADOPTION. The department received comments from stakeholders on proposed §§217.1, 217.6, 217.21, 217.32, 217.40, 217.41, 217.43, 217.45, 217.47, 217.52, 217.56, 217.71, 217.81, 217.83, 217.121, 217.141, 217.161, 217.181, 217.201, 217.301, and 217.401. The stakeholders requested reinstatement of rule language that the department had proposed for amendment or repeal because it was identified during rule review and the review by the Texas Regulatory Efficiency Office as duplicative of statute, unnecessary, in need of streamlining, or in need of modernization. After consideration of the comments, the department modified §§217.40, 217.41, 217.47, 217.52, 217.56, and 217.83 at adoption and withdrew the proposed revisions to §§217.1, 217.6, 217.21, 217.32, 217.43, 217.45, 217.71, 217.81, 217.121, 217.141, 217.161, 217.181, 217.201, 217.301, and 217.401 to remove the amendments the stakeholders identified as unnecessary or unhelpful.

At adoption, the department did not adopt the proposed amendments to §217.43(c) that removed a cross-reference to §217.32, which was proposed for repeal, and replaced it with a reference to Transportation Code, §502.060 and §504.007. The department determined the existing cross-reference to §217.32 should be retained since the department did not adopt the repeal of §217.32.

SUMMARY OF COMMENTS.

The department received two timely written comments on the proposal from the Texas Automobile Dealers Association (TADA) and the Texas Independent Automobile Dealers Association (TIADA).

Comment. TADA and TIADA commented in opposition to adoption of the proposed rule amendments concerning the purpose-and-scope provisions in §§217.1, 217.21, 217.40(a), 217.41(a), 217.43(a), 217.45(a), 217.47(a), 217.52(a), 217.56(a), 217.71(a), 217.81, 217.121, 217.141, 217.161, 217.181, 217.201, 217.301, and 217.401, which were identified by the department as part of the Texas Regulatory Efficiency Office's (TREO) review of the department's rules to cull out unnecessary rules. TADA asserted that the existing sections assist the public and regulated entities in understanding the department's intent and rationale for adopting the rules, and give readers a better regulatory comprehension of the department. TADA contended the amendments would create confusion or add unnecessary complexity and could disrupt established reliance on existing rule language without addressing a demonstrated need. TIADA contended the proposed elimination of the purpose-and-scope provisions throughout Chapter 217 would put independent dealers at a disadvantage in understanding the rules because the purpose-and-scope provisions assist independent motor vehicle dealers, who largely lack compliance or legal staff, with a better understanding of the organization and application of the rules to maintain compliance with the rules.

Response. The department agrees. These rules were identified for amendment or deletion by the department as part of the TREO review because they contained unnecessary or unenforceable language, required modernization, or duplicated statutory provisions. Throughout the review, TREO staff emphasized that it was important for the department to consider stakeholder feedback. In light of the comments indicating that stakeholders find the language that was proposed for deletion helpful, the department did not adopt the proposed amendments.

Comment. TADA commented in opposition to adoption of the proposed rule amendments in §217.6. TADA objected to the proposed amendments to delete §217.6(a) because the rule text is not entirely duplicative of Transportation Code §501.024 and includes language that aids the public in understanding the department's titling process.

Response. The department agrees. After further review, the department determined that §217.6(a) provides clarity where it is lacking in Transportation Code, §501.024 by providing statutory cites to the title fee exemptions, and provides background on the requirements for issuance of a title receipt to a title applicant. The department did not adopt the repeal at adoption.

Comment. TADA and TIADA commented in opposition to adoption of the proposed repeal of §217.32. TADA objected to the proposed repeal of §217.32 because it clarifies for the public how and when to apply for the replacement license plates or other registration devices, with details that Transportation Code, §502.060 and §504.007 do not provide. TIADA objected to the proposed repeal of §217.32 because §217.32 codifies a statewide standard for administration of the governing statutes concerning the replacement of license plates and registration insignia. Without it, TIADA is concerned that there would be an inconsistent standard of administration based on each county tax assessor-collector's individual interpretation of the governing statutes. TIADA contended that this could create an unnecessary compliance burden for dealers, consumers and county offices.

Response. The department agrees. After further review, the department determined that §217.32 provides additional clarity on the reasons a person may need to apply for replacement license plates or registration devices that are not immediately apparent from Transportation Code §502.060 and §504.007. The rule also clarifies that county tax assessor-collector offices are the locations for submitting replacement applications. The department withdrew and did not adopt the repeal.

Comment. TADA commented in opposition to adoption of the proposed rule amendments to §217.83, which substituted statutory cites for explanatory language in the rule, because they could create confusion for the public regarding who is required to apply for a nonrepairable or salvage title and how to apply for such titles.

Response. The department agrees. Since stakeholders find the language that was proposed for deletion helpful, the department did not adopt the proposed amendments in §217.83 that substituted statutory citations for explanations and descriptions of the statutory requirements.

SUBCHAPTER A. MOTOR VEHICLE TITLES

43 TAC §§217.3 - 217.5, 217.7, 217.12

STATUTORY AUTHORITY. The department adopts amendments to Chapter 217 under Transportation Code, §501.0041, which gives the department authority to adopt rules to administer Transportation Code Chapter 501, Certificate of Title Act; Transportation Code, §501.023, which authorizes the department to prescribe the process and procedures for applying for a motor vehicle title; Transportation Code, §501.0315, which authorizes the department to adopt rules governing the designation of a beneficiary by a motor vehicle owner; Transportation Code, §501.134, which authorizes the department to establish by rule a process for obtaining a lost or destroyed certificate of title; and Transportation Code, §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and duties of the department, as well as the statutes referenced throughout this preamble.

CROSS REFERENCE TO STATUTE. The adopted amendments implement Transportation Code, §§501.0041, 501.023, 501.0315, 501.134, and 1002.001.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 9, 2026.

TRD-202604298

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: October 29, 2026

Proposal publication date: June 26, 2026

For further information, please call: (512) 465-4160

SUBCHAPTER B. MOTOR VEHICLE REGISTRATION

43 TAC §§217.26 - 217.28, 217.40, 217.41, 217.47, 217.52, 217.54, 217.56, 217.57

STATUTORY AUTHORITY. The department adopts amendments to Chapter 217 under Transportation Code, §502.0021, which authorizes the department to adopt rules to administer Transportation Code Chapter 502, Registration of Vehicles; Transportation Code, §502.0024, which authorizes the department to develop and implement an extended registration process for a trailer, semitrailer, or pole trailer with a gross weight of 7,500 pounds or less; Transportation Code, §502.004, which requires the board to adopt rules establishing a program to collect information concerning the number of alternatively fueled vehicles registered in Texas; Transportation Code, §502.040, which authorizes the department to prescribe the process and procedures for applying for a motor vehicle registration; Transportation Code, §502.047, which authorizes the department to develop a vehicle registration based enforcement for motor vehicle inspections; Transportation Code, §502.060, which governs the replacement of registration insignia; Transportation Code, §502.091, which authorizes the department to enter into agreements with other jurisdictions of the United States and foreign countries to allow for reciprocal registration of vehicles to residents and nonresidents under the International Registration Plan and to adopt rules to carry out the International Registration Plan; Transportation Code, §502.094, which authorizes the department to issue 72- or 144-hour permits; Transportation Code, §502.095, which authorizes the department to issue one-trip and 30-day license plates; Transportation Code, §502.191, which governs the collection of fees by the department or county; Transportation Code, §502.1911, which authorizes the board to adopt rules to set registration processing and handing fees; Transportation Code, §502.407, which authorizes the department to define protracted period of time for an office closure of a county assessor-collector by rule; Transportation Code, §502.434, which authorizes the department to issue excess weight permits; Transportation Code §504.0011, which authorizes the department to adopt rules to implement and administer Transportation Code, Chapter 504, License Plates; Transportation Code, §504.007, which governs the replacement of license plates; Transportation Code, §504.201, which requires the department to issue disabled person license plates; Transportation Code, §504.202, which requires the department to issue disabled veteran license plates; Transportation Code, §504.2025, which requires the department to issue disabled peace officer license plates; Transportation Code, §504.801, which governs the creation of new specialty license plates by the department; Transportation Code, §504.851, which authorizes the department to contract with private vendors to propose and market department approved specialty license plates and adopt rules setting the fees for the issuance and renewal of the specialty license plates; Transportation Code, §681.002, which authorizes the department to issue disabled parking placards; and Transportation Code, §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and duties of the department, as well as the statutes referenced throughout this preamble.

CROSS REFERENCE TO STATUTE. The adopted amendments implement Transportation Code, §§502.0021, 502.0024, 502.040, 502.047, 502.060, 502.091, 502.094, 502. 095, 502.191, 502.1911, 502.407, 502.434, 504.0011, 504.007, 504.201, 504.202, 504.2025, 504.801, 504.851, 681.002, and 1002.001.

§217.40. Special Registrations.

(a) Purpose and scope. Transportation Code, Chapter 502, Subchapters C and I, charge the department with the responsibility of issuing special registration permits and special registration license plates, which shall be recognized as legal registration for the movement of motor vehicles not authorized to travel on Texas public highways for lack of registration or for lack of reciprocity with the state or country in which the vehicles are registered. For the department to efficiently and effectively perform these duties, this section prescribes the policies and procedures for the application and the issuance of special registration permits and special registration license plates.

(b) Permit categories. The department will issue the following categories of special registration permits.

(1) Additional weight permits in accordance with Transportation Code, §502.434.

(A) A permit will not be issued unless the registration fee for hauling the additional weight has been paid prior to the actual hauling.

(B) An applicant must provide proof of the applicant's Texas Agriculture or Timber Exemption Registration Number issued by the Texas Comptroller of Public Accounts. Proof of the registration number must be:

(i) legible;

(ii) current;

(iii) in the name of the person or dba in which the vehicle is or will be registered; and

(iv) verifiable through the online system established by the Comptroller.

(2) Annual permits in accordance with Transportation Code, §502.093.

(A) The department will issue annual permits:

(i) for a 12-month period designated by the department which begins on the first day of a calendar month and expires on the last day of the last calendar month in that annual registration period; and

(ii) to each vehicle or combination of vehicles for the registration fee prescribed by weight classification in Transportation Code, §502.253 and §502.255.

(B) The following exemptions apply to vehicles displaying annual permits. Currently registered foreign semitrailers having a gross weight in excess of 6,000 pounds used or to be used in combination with commercial motor vehicles or truck tractors having a gross vehicle weight in excess of 10,000 pounds are exempted from the requirements to pay the token fee and display the associated distinguishing license plate provided for in Transportation Code, §502.255. An annual permit is required for the power unit only. For vehicles registered in combination, the combined gross weight may not be less than 18,000 pounds.

(C) Upon approval of an application, the department will issue one license plate for a trailer, semitrailer, or foreign commercial motor vehicle as defined in Transportation Code, §648.001(4). The license plate issued to a truck-tractor shall be installed on the front of the truck-tractor. For other types of vehicles, the license plate issued shall displayed as required by §217.27(b) of this title (relating to Vehicle Registration Insignia).

(3) 72-hour permits and 144-hour permits in accordance with Transportation Code, §502.094. An applicant must provide a United States Department of Transportation (USDOT) number.

(1) One-trip license plates in accordance with Transportation Code, §502.095.

(A) A one-trip license plate may not be issued for a trip which both originates and terminates outside Texas.

(B) A laden motor vehicle or a laden commercial vehicle cannot display a one-trip license plate. If the vehicle is unregistered, it must operate with a 72-hour or 144-hour permit.

(C) A one-trip license plate must be displayed as required by §217.27(b) of this title (relating to Vehicle Registration Insignia).

(2) 30-day license plates in accordance with Transportation Code, §502.095.

(A) A vehicle operated on a 30-day license plate is not restricted to a specific route.

(B) A 30-day license plate must be displayed as required by §217.27(b) of this title (relating to Vehicle Registration Insignia).

(d) Application process.

(1) Procedure. An owner who wishes to apply for a special registration permit or special registration license plate for a vehicle which is otherwise required to be registered in accordance with this subchapter, must do so on a form prescribed by the department.

(2) Form requirements. The application form will at a minimum require:

(A) the signature of the owner;

(B) the name and complete address of the applicant; and

(3) Fees and documentation. The application must be accompanied by:

(A) statutorily prescribed fees.

(B) evidence of financial responsibility:

(i) as required by Transportation Code, Chapter 502, Subchapter B, provided that all policies written for the operation of motor vehicles must be issued by an insurance company or surety company authorized to write motor vehicle liability insurance in Texas; or

(ii) if the applicant is a motor carrier as defined by §218.2 of this title (relating to Definitions), indicating that the vehicle is registered in compliance with Chapter 218, Subchapter B of this title (relating to Motor Carrier Registration); and

(4) Place of application.

(A) All applications for annual permits must be submitted directly to the department for processing and issuance.

(B) Additional weight permits may be obtained by making application with the department through the county tax assessor-collectors' offices.

(C) 72-hour and 144-hour permits, one-trip license plates, and 30-day license plates may be obtained by making application either with the department or the county tax assessor-collectors' offices.

(e) Receipt for special registration permit or special registration license plate in lieu of registration. A receipt will be issued for each special registration permit or special registration license plate in lieu of registration to be carried in the vehicle during the time the special registration permit or special registration license plate is valid. If the receipt is lost or destroyed, the owner must obtain a duplicate from the department or from the county office. The fee for the duplicate receipt is the same as the fee required by Transportation Code, §502.058.

(f) Transfer of special registration permits or special registration license plates.

(1) Special registration permits and special registration license plates are non-transferable between vehicles and/or owners.

(2) If the owner of a vehicle displaying a special registration permit or a special registration license plate disposes of the vehicle during the time the permit or license plate is valid, the permit or license plate must be returned to the county tax assessor-collector office or department immediately.

(g) Replacement permits. Vehicle owners displaying annual permits may obtain replacement permits if an annual permit is lost, stolen, or mutilated.

(1) The fee for a replacement annual permit is the same as for a replacement number plate, symbol, tab, or other device as provided by Transportation Code, §502.060.

(2) The owner shall apply directly to the department in writing for the issuance of a replacement annual permit. Such request should include a copy of the registration receipt and replacement fee.

(h) Agreements with other jurisdictions. In accordance with Transportation Code, §502.091, and Chapter 648, the executive director of the department may enter into a written agreement with an authorized officer of a state, province, territory, or possession of a foreign country to provide for the exemption from payment of registration fees by nonresidents, if residents of this state are granted reciprocal exemptions. The executive director may enter into such agreement only upon:

(1) the approval of the governor; and

(2) making a determination that the economic benefits to the state outweigh all other factors considered.

(i) Border commercial zones.

(1) Texas registration required. A vehicle located in a border commercial zone must display a valid Texas registration if the vehicle is owned by a person who:

(A) owns a leasing facility or a leasing terminal located in Texas; and

(B) leases the vehicle to a foreign motor carrier.

(2) Exemption for trips of short duration. Except as provided by paragraph (1) of this subsection, a foreign commercial vehicle operating in accordance with Transportation Code, Chapter 648 is exempt from the display of a temporary registration permit if:

(A) the vehicle is engaged solely in the transportation of cargo across the border into or from a border commercial zone;

(B) for each load of cargo transported the vehicle remains in this state for:

(i) not more than 24 hours; or

(ii) not more than 48 hours, if:

(I) the vehicle is unable to leave this state within 24 hours because of circumstances beyond the control of the motor carrier operating the vehicle; and

(II) all financial responsibility requirements applying to this vehicle are satisfied;

(C) the vehicle is registered and licensed as required by the country in which the person that owns the vehicle is domiciled or is a citizen as evidenced by a valid metal license plate attached to the front or rear exterior of the vehicle; and

(D) the country in which the person who owns the vehicle is domiciled or is a citizen provides a reciprocal exemption for commercial motor vehicles owned by residents of Texas.

(3) Exemption due to reciprocity agreement. Except as provided by paragraph (1) of this subsection, a foreign commercial motor vehicle in a border commercial zone in this state is exempt from the requirement of obtaining a Texas registration if the vehicle is currently registered in another state of the United States or a province of Canada with which this state has a reciprocity agreement that exempts a vehicle that is owned by a resident of this state and that is currently registered in this state from registration in the other state or province.

§217.41. Disabled Person License Plates and Disabled Parking Placards.

(a) Purpose. Transportation Code, Chapters 504 and 681, charge the department with the responsibility for issuing specially designed license plates and disabled parking placards for disabled persons. For the department to perform these duties efficiently and effectively, this section prescribes the policies and procedures for the application, issuance, and renewal of disabled person license plates and disabled parking placards.

(b) Issuance.

(1) For purposes of this section, "disabled person" means a person eligible for issuance of a license plate bearing the International Symbol of Access under Transportation Code, §504.201, including a qualifying disabled veteran under Transportation Code, §504.202(b-1) and a qualifying disabled peace officer under Transportation Code, §504.2025.

(2) Disabled person license plates.

(A) Eligibility. In accordance with Transportation Code, §504.201; §504.202(b-1) and (b-2); and §504.2025, the department will issue specially designed license plates displaying the International Symbol of Access to permanently disabled persons or their transporters instead of general issue license plates. As satisfactory proof of eligibility, an organization that transports disabled veterans who would qualify for license plates issued under Transportation Code, §504.202(b-1) must provide a written statement from the veteran's county service officer of the county in which a vehicle described by Transportation Code, §504.202(c) is registered or by the Department of Veterans Affairs that:

(i) the vehicle is used exclusively to transport veterans of the United States armed forces who have suffered, as a result of military service, a service-connected disability;

(ii) the vehicle regularly transports veterans who are eligible to receive license plates under Transportation Code, §504.202(b-1); and

(iii) the veterans are not charged for the transportation.

(B) Specialty license plates. The department will issue disabled person specialty license plates displaying the International Symbol of Access that can accommodate the identifying insignia and that are issued in accordance with §217.43 of this title (relating to Military Specialty License Plates) or §217.45 of this title (relating to Specialty License Plates, Symbols, Tabs, and Other Devices).

(C) License plate number. Disabled person license plates will bear a license plate number assigned by the department or will bear a personalized license plate number issued in accordance with §217.43 or §217.45 of this title.

(D) General issue license plate option for qualifying disabled veterans and disabled peace officers. In accordance with Transportation Code, §504.202(h) and §504.2025(h), qualifying disabled veterans and disabled peace officers may elect to receive general issue license plates without paying license plate fees.

(3) Windshield disabled parking placards.

(A) Issuance. The department will issue removable windshield disabled parking placards to temporarily or permanently disabled persons and to the transporters of permanently disabled persons, as provided under Transportation Code, §§504.201, 504.202 (b-1) and (b-2), 504.2025, and 681.004.

(B) Display. A person who has been issued a windshield disabled parking placard shall hang the placard from a vehicle's rearview mirror when the vehicle is parked in a disabled person parking space or shall display the placard on the center portion of the dashboard if the vehicle does not have a rearview mirror.

(c) Renewal of disabled person license plates. Disabled person license plates are valid for a period of 12 months from the date of issuance and are renewable as specified in §§217.28 of this title (relating to Vehicle Registration Renewal), 217.43, and 217.45 of this title.

(d) Replacement.

(1) License plates. If a disabled person metal license plate is lost, stolen, or mutilated, the owner may obtain a replacement metal license plate by applying with a county tax assessor-collector.

(A) Accompanying documentation. To replace disabled person metal license plates, the owner must present the current year's registration receipt and personal identification acceptable to the county tax assessor-collector.

(B) Absence of accompanying documentation. If the current year's registration receipt is not available and the county tax assessor-collector cannot verify that the disabled person metal license plates were issued to the owner, the owner must reapply in accordance with this section.

(2) Disabled parking placards. If a disabled parking placard becomes lost, stolen, or mutilated, the owner may obtain a new disabled parking placard in accordance with this section.

(e) Transfer of disabled person license plates and disabled parking placards.

(1) License plates.

(A) Transfer between persons. Disabled person license plates may not be transferred between persons. An owner who sells or trades a vehicle to which disabled person license plates have been issued shall remove the disabled person license plates from the vehicle. The owner shall return the license plates to the department and shall obtain appropriate replacement license plates to place on the vehicle prior to any transfer of ownership.

(B) Transfer between vehicles. Disabled person license plates may be transferred between vehicles if the county tax assessor-collector or the department can verify the plate ownership and the owner of the vehicle is a disabled person or the vehicle is used to transport a disabled person.

(i) Plate ownership verification may include:

(I) a Registration and Title System (RTS) inquiry;

(II) a copy of the department application for disabled person license plates; or

(III) the owner's current registration receipt.

(ii) An owner who sells or trades a vehicle with disabled person license plates must remove the plates from the vehicle.

(iii) The department will provide a form that persons may use to facilitate a transfer of disabled person license plates between vehicles.

(2) Disabled parking placards.

(A) Transfer between vehicles. Disabled parking placards may be displayed in any vehicle driven by the disabled person or in which the disabled person is a passenger.

(B) Transfer between persons. Disabled parking placards may not be transferred between persons.

(f) Seizure and revocation of disabled parking placard.

(1) If a law enforcement officer seizes and destroys a disabled parking placard under Transportation Code, §681.012, the officer shall notify the department by email.

(2) The person to whom the seized disabled parking placard was issued may apply for a new disabled parking placard by submitting an application to the county tax assessor-collector of the county in which the person with the disability resides or in which the applicant is seeking medical treatment.

§217.47. Vehicle Emissions Enforcement System.

(a) Purpose. Transportation Code, §502.047 requires the department to implement a system requiring verification that a vehicle complies with vehicle emissions inspection and maintenance programs as required by the Health and Safety Code, §382.202 and §382.203, and Transportation Code, Chapter 548, Subchapter F. Transportation Code, §501.0276 and §502.047 requires a vehicle subject to Transportation Code, §548.3011 to pass an emissions test on resale in an affected or early action compact county before it is titled or registered. This section prescribes the department's policies and procedures if a vehicle does not comply with the emissions standards set by federal and state laws and the provisions of the Texas air quality State Implementation Plan.

(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Affected County--A county with a motor vehicle emissions inspection and maintenance program established under Transportation Code, §548.301.

(2) Department--The Texas Department of Motor Vehicles.

(3) DPS--The Texas Department of Public Safety.

(4) Early action compact county--A participating county under Health and Safety Code, Chapter 382, Subchapter H.

(5) TCEQ--The Texas Commission on Environmental Quality.

(6) Vehicle--A self-propelled vehicle required to be registered in the state, except those vehicles exempted by TCEQ.

(7) Vehicle inspection report--A vehicle inspection form prescribed by DPS that is printed by the vehicle exhaust gas analyzer immediately following an emissions test.

(8) Vehicle emissions I/M program--A vehicle emissions inspection and maintenance program meeting all the requirements of the Environmental Protection Agency.

(9) Waiver--A form and certificate that allows a vehicle to be considered in compliance with the vehicle emissions I/M program for a specified period of time after a vehicle fails an emissions test.

(1) DPS, after notice to the vehicle owner, will notify the department if a motor vehicle owner fails to comply with the requirements of Transportation Code, Chapter 548, Subchapter F.

(2) TCEQ, after notice to the vehicle owner, will notify the department if a motor vehicle fails to comply with the requirements of Health and Safety Code, §382.202 and §382.203, and Transportation Code, Chapter 548, Subchapter F.

(3) The notice will include the vehicle identification number and the license plate number of the affected vehicle.

(4) If the department receives a notice of emissions noncompliance from DPS or TCEQ, the department will place a notation on the motor vehicle record that the motor vehicle has failed to comply with the vehicle emissions I/M program.

(5) If the department receives a notice of emissions compliance from DPS or TCEQ, the department will remove the non-compliance notation from the motor vehicle record.

(6) If a vehicle record contains a notation of failure to comply with the vehicle emissions I/M program, the tax assessor-collector will deny registration unless provided with:

(A) proof of compliance with the vehicle emissions I/M program with a "passing" vehicle inspection report; or

(B) proof of a waiver issued by DPS that includes the vehicle identification number and the license plate number.

(d) Vehicles moved into affected or early action compact counties. If a vehicle was last titled in an unaffected county and is to be titled or registered in an affected or early action compact county, it is not eligible for a title receipt, a title, or registration after a retail sale unless proof is presented to the county tax assessor-collector that the vehicle has passed the emissions test. This subsection does not apply to a vehicle that will be used in the affected or early action compact county for fewer than 60 days during the registration period for which registration is sought or to a vehicle that is a 1996 or newer model and has less than 50,000 miles.

§217.52. Marketing of Specialty License Plates through a Private Vendor.

(a) Purpose and scope. The department will enter into a contract with a private vendor to market department-approved specialty license plates in accordance with Transportation Code, Chapter 504, Subchapter J. This section sets out the procedure for approval of the design, purchase, and replacement of vendor specialty license plates. In this section, the license plates marketed by the vendor are referred to as vendor specialty license plates.

(b) Application for approval of vendor specialty license plate designs.

(1) Approval required. The vendor shall obtain the approval of the board for each license plate design the vendor proposes to market in accordance with this section and the contract entered into between the vendor and the department.

(2) Application. The vendor must submit a written application on a form approved by the executive director to the department for approval of each license plate design the vendor proposes to market. The application must include:

(A) a draft design of the specialty license plate;

(B) projected sales of the license plate, including an explanation of how the projected figure was determined;

(D) a licensing agreement from the appropriate third party for any design or design element that is intellectual property; and

(E) other information necessary for the board to reach a decision regarding approval of the requested vendor specialty license plate.

(1) will not consider incomplete applications; and

(2) may request additional information from the vendor to reach a decision.

(d) Board decision.

(1) Decision. The decision of the board will be based on:

(A) compliance with Transportation Code, Chapter 504, Subchapter J;

(B) the proposed license plate design, including:

(i) whether the design meets the legibility and reflectivity standards established by the department;

(ii) whether the design meets the standards established by the department for uniqueness to ensure that the proposed license plate complies with Transportation Code, §504.852(c);

(iii) whether the license plate design can accommodate the International Symbol of Access (ISA) as required by Transportation Code, §504.201(f);

(iv) the criteria designated in §217.27 of this title (relating to Vehicle Registration Insignia) as applied to the design;

(v) whether a design is similar enough to an existing license plate design that it may compete with the existing license plate sales; and

(vi) other information provided during the application process.

(2) Public comment on proposed design. All proposed license plate designs will be considered by the board as an agenda item at a regularly or specially called open meeting. Notice of consideration of proposed license plate designs will be posted in accordance with Office of the Secretary of State meeting notice requirements. Notice of each license plate design will be posted on the department's Internet web site to receive public comment at least 25 days in advance of the meeting at which it will be considered. The department will notify all specialty license plate organizations and the sponsoring agencies who administer specialty license plates issued in accordance with Transportation Code, Chapter 504, Subchapter G, of the posting. A comment on the proposed design can be submitted in writing through the mechanism provided on the department's Internet web site for submission of comments. Written comments are welcome and must be received by the department at least 10 days in advance of the meeting. Public comment will be received at the board's meeting.

(e) Final approval and specialty license plate issuance.

(1) Approval. The board will approve or disapprove the specialty license plate application based on all of the information provided pursuant to this subchapter in an open meeting.

(2) Application not approved. If the application is not approved, the applicant may submit a new application and supporting documentation for the design to be considered again by the board if:

(A) the applicant has additional, required documentation; or

(B) the design has been altered to an acceptable degree.

(3) Issuance of approved specialty license plates.

(A) If the vendor's specialty license plate is approved, the vendor must submit the non-refundable start-up fee before any further design and processing of the specialty license plate.

(B) Approval of the specialty license plate does not guarantee that the submitted draft specialty license plate design will be used. The board has final approval of all specialty license plate designs and will provide guidance on the submitted draft design to ensure compliance with the format and specialty license plate specifications.

(f) Redesign of vendor specialty license plates.

(1) On receipt of a written request from the vendor, the department will allow a redesign of a vendor specialty license plate.

(2) The vendor must pay the redesign administrative costs as provided in the contract between the vendor and the department.

(g) Multi-year vendor specialty license plates. Purchasers will have the option of purchasing vendor specialty license plates for a one-year, a three-year, or a five-year period.

(h) License plate categories and associated fees. The categories and the associated fees for vendor specialty license plates are set out in this subsection.

(1) Custom personalized specialty license plates are non-embossed license plates personalized with up to seven alphanumeric characters on department-approved vendor designs. The fees for issuance of these license plates are $150 for one year, $400 for three years, and $450 for five years.

(2) Background-only license plates are non-personalized embossed or non-embossed license plates on department-approved vendor designs.

(A) The fees for issuance of non-embossed, background-only license plates are $50 for one year, $130 for three years, and $175 for five years.

(B) Except as stated in subsection (h)(6)(B) of this section, the fees for embossed, background-only license plates are $125 for one year, $205 for three years, and $250 for five years.

(3) Vendor souvenir license plates. Vendor souvenir license plates are replicas of vendor specialty license plate designs that may be personalized with up to 24 alphanumeric characters. Vendor souvenir license plates are not street legal or legitimate insignias of vehicle registration. The fee for issuance of souvenir license plates is $40.

(4) Auction. The vendor may auction department-approved license plate numbers for one, three, or five year terms with options to renew indefinitely at the current price established for a one, three, or five year custom personalized specialty category license plate. The purchaser of the auction license plate number may select from the vendor background designs, including any embossed license plate designs, at no additional charge at the time of initial issuance. The auction license plate number may be moved from one vendor design plate to another vendor design license plate as provided in subsection (n)(1) of this section. The auction license plate number may be transferred from owner to owner as provided in subsection (l)(2) of this section.

(5) Embossed, personalized specialty license plates are license plates personalized with up to seven alphanumeric characters on department-approved vendor designs. Except as stated in subsection (h)(4) of this section, the fees for issuance of embossed, personalized specialty license plates are $270 for one year, $520 for three years, and $570 for five years. Except as stated in subsection (h)(6)(B) of this section, the fees under subsection (h)(6) of this section do not apply to an embossed, personalized specialty license plate.

(6) Personalization and specialty license plate fees.

(A) The personalization fee for license plates applied for after November 19, 2009 is $40 if the license plates are issued pursuant to Transportation Code, Chapter 504, Subchapters G and I.

(B) If the license plates are renewed annually, the personalization and specialty license plate fees remain the same fee as at the time of issuance if a sponsor of a specialty license plate authorized under Transportation Code, Chapter 504, Subchapters G and I signs a contract with the vendor in accordance with Transportation Code, Chapter 504, Subchapter J, even if the board approves the specialty license plate to be an embossed specialty license plate design.

(i) Payment of fees.

(1) Payment of specialty license plate fees. The fees for issuance of vendor specialty license plates will be paid directly to the state through vendor and state systems for the license plate category and period selected by the purchaser. A person who purchases a multi-year vendor specialty license plate must pay upon purchase the full fee which includes the renewal fees.

(2) Payment of statutory registration fees. To be valid for use on a motor vehicle, the license plate owner is required to pay, in addition to the vendor specialty license plate fees, any statutorily required registration fees in the amount as provided by Transportation Code, Chapter 502, and this subchapter.

(j) Refunds. Fees for vendor specialty license plate fees will not be refunded after an application is submitted to the vendor and the department has approved issuance of the license plate.

(k) Replacement.

(1) Application. An owner must apply directly to the county tax assessor-collector for the issuance of replacement vendor specialty license plates and must pay the fee described in paragraphs (2) or (3) of this subsection, whichever applies.

(2) Lost or mutilated vendor specialty license plates. To replace vendor specialty license plates that are lost or mutilated, the owner must pay the statutory replacement fee provided in Transportation Code, §504.007.

(3) Optional replacements. An owner of a vendor specialty license plate may replace vendor specialty license plates by submitting a request to the county tax assessor-collector accompanied by the payment of a $6 fee.

(4) Interim replacement tags. If the vendor specialty license plates are lost or mutilated to such an extent that they are unusable, replacement specialty license plates may be remanufactured. The county tax assessor-collector will issue interim replacement tags for use until the replacements are available. The owner's vendor specialty license plate number will be shown on the interim replacement tags.

(5) Stolen vendor specialty license plates. The county tax assessor-collector will not approve the issuance of replacement vendor specialty license plates with the same license plate number if the department's records indicate that the vehicle displaying that license plate number was reported stolen or the license plates themselves were reported stolen to law enforcement.

(l) Transfer of vendor specialty license plates.

(1) Transfer between vehicles. The owner of a vehicle with vendor specialty license plates may transfer the specialty license plates between vehicles by filing an application through the county tax assessor-collector if the vehicle to which the specialty license plates are transferred:

(A) is titled or leased in the owner's name; and

(B) meets the vehicle classification requirements for that specialty license plate.

(2) Transfer between owners. Vendor specialty license plates may not be transferred between persons unless the specialty license plate number was initially purchased through auction as provided in subsection (h)(4) of this section. An auctioned license plate number may be transferred as a specialty license plate or as a virtual pattern to be manufactured on a new background as provided under the restyle option in subsection (n)(1) of this section. In addition to the fee paid at auction, the new owner of an auctioned license plate number or plate will pay the department a fee of $25 to cover the cost of the transfer, and complete the department's prescribed application at the time of transfer.

(m) Gift license plates.

(1) A person may purchase license plates as a gift for another person if the purchaser submits a statement that provides:

(A) the purchaser's name and address;

(B) the name and address of the person who will receive the license plates; and

(C) the vehicle identification number of the vehicle on which the license plates will be displayed or a statement that the license plates will not be displayed on a vehicle.

(2) To be valid for use on a motor vehicle, the recipient of the license plates must file an application with the county tax assessor-collector and pay the statutorily required registration fees in the amount as provided by Transportation Code, Chapter 502, and this subchapter.

(n) Restyled vendor specialty license plates. A person who has purchased a multi-year vendor specialty license plate may request a restyled license plate at any time during the term of the plate.

(1) For the purposes of this subsection, "restyled license plate" is a vendor specialty license plate that has a different style from the originally purchased vendor specialty license plate but:

(A) is within the same price category, except if the license plate number was purchased through auction and has the same alpha-numeric characters and expiration date as the previously issued multi-year license plates; or

(B) is restyling to an embossed specialty license plate style and has the same alpha-numeric characters and expiration date as the previously issued multi-year license plates.

(2) The fee for each restyled license plate is:

(A) $50 for restyling under subsection (n)(1)(A) of this section; or

(B) $75 for restyling under subsection (n)(1)(B) of this section.

§217.56. Registration Reciprocity Agreements.

(a) Purpose. To promote and encourage the fullest possible use of the highway system and contribute to the economic development and growth of the State of Texas and its residents, the department is authorized by Transportation Code, §502.091 to enter into agreements with duly authorized officials of other jurisdictions, including any state of the United States, the District of Columbia, a foreign country, a state or province of a foreign country, or a territory or possession of either the United States or of a foreign country, and to provide for the registration of vehicles by Texas residents and nonresidents on an allocation or distance apportionment basis, and to grant exemptions from the payment of registration fees by nonresidents if the grants are reciprocal to Texas residents.

(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Cab card--The apportioned vehicle registration receipt that contains, but is not limited to, the vehicle description and the registered weight at which the vehicle may operate in each jurisdiction.

(2) Department--The Texas Department of Motor Vehicles.

(3) Director--The director of the Motor Carrier Division, Texas Department of Motor Vehicles.

(4) Executive director--The chief executive officer of the department.

(5) Temporary cab card--A temporary registration authorized by the department that allows the operation of a vehicle for up to 30 days subject to all rights and privileges afforded to a vehicle displaying apportioned registration. A temporary cab card expires on the earliest of the following:

(A) 30 days after issuance; or

(B) when the registrant affixes the license plate(s) to the vehicle.

(1) Authority. The executive director may on behalf of the department enter into a multilateral agreement with the duly authorized officials of two or more other jurisdictions to carry out the purpose of this section.

(2) International Registration Plan (IRP).

(A) Applicability. The IRP is a registration reciprocity agreement among states of the United States and other jurisdictions providing for payment of registration fees on the basis of fleet distance operated in various jurisdictions. Its purpose is to promote and encourage the fullest possible use of the highway system by authorizing apportioned registration for commercial motor vehicles and payment of appropriate vehicle registration fees and thus contributing to the economic development and growth of the member jurisdictions.

(B) Adoption. The department adopts by reference the October 1, 2025, version of the IRP. The department also adopts by reference the January 1, 2016, version of the IRP Audit Procedures Manual. In the event of a conflict between this section and the IRP or the IRP Audit Procedures Manual, the IRP and the IRP Audit Procedures Manual control. Copies of the documents are available online at www.irponline.org or on request to the department.

(C) Application. An applicant must electronically submit an application in the department's designated system for apportioned registration. In addition to providing the department with the information and documents required under IRP, an applicant shall provide the department with a copy of the applicant's receipt under the Unified Carrier Registration System Plan and Agreement under 49 U.S.C. §14504a (UCR) to prove the applicant is currently registered under UCR if the applicant is required to register under UCR.

(D) Issuance of Registration. Upon receipt of the applicable fees, information, and documents, the department will review the application and, to the extent the vehicle is eligible for apportioned registration, issue one or two license plates, a temporary cab card, and a cab card for each vehicle registered.

(E) Display of License Plates and Cab Cards.

(i) The department will issue one license plate for a tractor, truck-tractor, trailer, and semitrailer. The license plate issued to a tractor or a truck-tractor shall be installed on the front of the tractor or truck-tractor, and the license plate issued for a trailer or semitrailer shall be installed on the rear of the trailer or semitrailer.

(ii) The department will issue two license plates for all other vehicles that are eligible to receive license plates under the IRP. Once the department issues two license plates for a vehicle listed in this clause, one plate shall be installed on the front of the vehicle, and one plate shall be installed on the rear of the vehicle.

(iii) The cab card shall be carried at all times in the vehicle in accordance with the IRP. If the registrant chooses to display an electronic image of the cab card on a wireless communication device or other electronic device, such display does not constitute consent for a peace officer, or any other person, to access the contents of the device other than the electronic image of the cab card.

(iv) The authority to display an electronic image of the cab card on a wireless communication device or other electronic device does not prevent the Texas State Office of Administrative Hearings or a court of competent jurisdiction from requiring the registrant to provide a paper copy of the cab card in connection with a hearing, trial, or discovery proceeding.

(F) Audit. An audit of the registrant's vehicle operational records may be conducted by the department according to the IRP provisions and the IRP Audit Procedures Manual. Upon request, the registrant shall provide the department with operational records of each vehicle for audit in any format or medium available to the registrant and accessible to the department, including, but not limited to, a summary of distance traveled by each individual vehicle on a monthly, quarterly, and annual basis with distance totaled separately for each jurisdiction in which the vehicle traveled.

(G) Assessment. The department may assess additional registration fees of up to 100% of the apportionable fees paid by the registrant for the registration of its fleet in the registration year to which the records pertain, as authorized by the IRP, if an audit conducted under subparagraph (F) of this paragraph reveals that:

(i) the operational records indicate that the vehicle did not generate interstate distance in two or more member jurisdictions for the distance reporting period supporting the application being audited, plus the six-month period immediately following that distance reporting period;

(ii) the registrant failed to provide complete operational records; or

(iii) the distance must be adjusted, and the adjustment results in a shortage of registration fees due Texas or any other IRP jurisdiction.

(H) Refunds. If an audit conducted under subparagraph (F) of this paragraph reveals an overpayment of fees to Texas or any other IRP jurisdiction, the department will refund the overpayment of registration fees in accordance with Transportation Code, §502.195 and the IRP. Any registration fees refunded to a registrant for another jurisdiction will be deducted from registration fees collected and transmitted to that jurisdiction.

(I) Cancellation or revocation. The director or the director's designee may cancel or revoke a registrant's apportioned registration and all privileges provided by the IRP as authorized by the following:

(i) the IRP; or

(ii) Transportation Code, Chapter 502.

(J) Procedures for assessment, cancellation, or revocation.

(i) Notice. If a registrant is assessed additional registration fees, as provided in subparagraph (G) of this paragraph, and the additional fees are not paid by the due date provided in the notice or it is determined that a registrant's apportioned license plates and privileges should be canceled or revoked, as provided in subparagraph (I) of this paragraph, the director or the director's designee will mail a notice by certified mail to the last known address of the registrant. The notice will state the facts underlying the assessment, cancellation, or revocation; the effective date of the assessment, cancellation, or revocation; and the right of the registrant to request a conference as provided in clause (ii) of this subparagraph.

(ii) Conference. A registrant may request a conference upon receipt of a notice issued as provided by clause (i) of this subparagraph. The request must be made in writing to the director or the director's designee within 30 days of the date of the notice. If timely requested, the conference will be scheduled and conducted by the director or the director's designee in person at the department's headquarters in Austin or remotely using telephonic or videoconferencing technology and will serve to abate the assessment, cancellation, or revocation unless and until that assessment, cancellation, or revocation is affirmed or disaffirmed by the director or the director's designee. In the event matters are resolved in the registrant's favor, the director or the director's designee will mail the registrant a notice of withdrawal, notifying the registrant that the assessment, cancellation, or revocation is withdrawn, and stating the basis for that action. In the event matters are not resolved in the registrant's favor, the director or the director's designee will issue a decision reaffirming the department's assessment of additional registration fees or cancellation or revocation of apportioned license plates and privileges. The registrant has the right to appeal in accordance with clause (iii) of this subparagraph.

(iii) Appeal. If a conference held in accordance with clause (ii) of this subparagraph fails to resolve matters in the registrant's favor, the registrant may submit an appeal under §224.122 of this title (relating to Appeal of Decision Regarding Assessment, Cancellation, or Revocation Under §217.56). An appeal will be governed by Chapter 224 of this title (relating to Adjudicative Practice and Procedure) and Transportation Code, Chapter 502.

(K) Reinstatement.

(i) The director or the director's designee will reinstate apportioned registration to a previously canceled or revoked registrant if all applicable fees and assessments due on the previously canceled or revoked apportioned account have been paid and the applicant provides proof of an acceptable recordkeeping system for a period of no less than 60 days.

(ii) The application for the following registration year will be processed in accordance with the provisions of the IRP.

(L) Denial of apportioned registration for safety reasons. The department will comply with the requirements of the Performance and Registration Information Systems Management program (PRISM) administered by the Federal Motor Carrier Safety Administration (FMCSA).

(i) Denial or suspension of apportioned registration. Upon notification from the FMCSA that a carrier has been placed out of service for safety violations, the department will:

(I) deny initial issuance of apportioned registration;

(II) deny authorization for a temporary cab card;

(III) deny renewal of apportioned registration; or

(IV) suspend current apportioned registration.

(ii) Issuance after denial of registration or reinstatement of suspended registration. The director or the director's designee will reinstate or accept an initial or renewal application for apportioned registration from a registrant who was suspended or denied registration under clause (i) of this subparagraph upon presentation of a Certificate of Compliance from FMCSA, in addition to all other required documentation and payment of fees.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 9, 2026.

TRD-202604299

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: October 29, 2026

Proposal publication date: June 26, 2026

For further information, please call: (512) 465-4160

43 TAC §217.37

STATUTORY AUTHORITY. The department adopts a repeal in Chapter 217 under Transportation Code §502.0021, which authorizes the department to adopt rules to administer Transportation Code Chapter 502, Registration of Vehicles; Transportation Code, §502.191, which governs the collection of fees by the department or county; Transportation Code, §502.1911, which authorizes the board to adopt rules to set registration processing and handing fees; and Transportation Code, §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and duties of the department, as well as the statutes referenced throughout this preamble.

CROSS REFERENCE TO STATUTE. This adopted repeal implements Transportation Code, §§502.0021, §502.191, 502.1911, and 1002.001.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 9, 2026.

TRD-202604300

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: October 29, 2026

Proposal publication date: June 26, 2026

For further information, please call: (512) 465-4160

SUBCHAPTER C. REGISTRATION AND TITLE SYSTEMS

43 TAC §217.72, §217.74

STATUTORY AUTHORITY. The department adopts amendments to Chapter 217 under Transportation Code §502.0021, which authorizes the department to adopt rules to administer Transportation Code, Chapter 502, Registration of Vehicles; Transportation Code, §502.059, which authorizes the department to adopt rules providing for an automated registration process; Transportation Code, §520.003, which authorizes the department to adopt rules to administer Transportation Code, Chapter 520, Miscellaneous Provisions; Transportation Code, §520.0055, which authorizes the department to mandate motor vehicle dealers use a department designated electronic system to submit title and registration application to county tax assessor-collectors for motor vehicle transactions; Transportation Code, §520.023, which authorizes the department to implement a training program providing information on the department's automated registration and titling system and require training of persons performing titling and registration services in the systems; and Transportation Code, §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and duties of the department, as well as the statutes referenced throughout this preamble.

CROSS REFERENCE TO STATUTE. The adopted amendments implement Transportation Code, §§502.0021, 502.059, 520.003, 520.0055, 520.023, and 1002.001.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 9, 2026.

TRD-202604301

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: October 29, 2026

Proposal publication date: June 26, 2026

For further information, please call: (512) 465-4160

43 TAC §217.73

STATUTORY AUTHORITY. The department adopts a repeal to Chapter 217 under Transportation Code, §520.003, which authorizes the department to adopt rules to administer Transportation Code, Chapter 520; and Transportation Code, §520.0093, which authorizes the department to lease automated registration and titling system equipment to a county.

CROSS REFERENCE TO STATUTE. This adopted repeal implements Transportation Code § 520.003 and §520.0093.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 9, 2026.

TRD-202604302

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: October 29, 2026

Proposal publication date: June 26, 2026

For further information, please call: (512) 465-4160

SUBCHAPTER D. NONREPAIRABLE AND SALVAGE MOTOR VEHICLES

43 TAC §217.83, §217.84

STATUTORY AUTHORITY. The department adopts amendments to Chapter 217 under Transportation Code, §501.0041, which gives the department authority to adopt rules to administer Transportation Code, Chapter 501, Certificate of Title Act; Transportation Code, §501.0925, which authorizes the department to adopt rules governing the issuance of titles to insurance companies; Transportation Code, §501.097, which authorizes the department to prescribe the process and procedures for applying for nonrepairable and salvage vehicle titles; and Transportation Code, §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and the duties of the department, as well as the statutes referenced throughout this preamble.

CROSS REFERENCE TO STATUTE. The adopted amendments implement Transportation Code, §§501.0041, 501.0925, 501.097, and 1002.001.

§217.83. Requirement for Nonrepairable or Salvage Vehicle Title or Nonrepairable or Salvage Record of Title.

(a) Determination of condition of vehicle.

(1) Salvage motor vehicle. When a vehicle is damaged, the actual cash value of the motor vehicle immediately before the damage and the cost of repairs shall be used to determine whether the damage is sufficient to classify the motor vehicle as a salvage motor vehicle.

(2) Nonrepairable motor vehicle. When a vehicle is damaged, the actual cash value of the motor vehicle immediately before the damage and the cost of repairs, or any method commonly used by the insurance industry, shall be used to determine whether the damage is sufficient to classify the motor vehicle as a nonrepairable motor vehicle.

(3) The actual cash value of the motor vehicle is the market value of a motor vehicle as determined:

(A) from publications commonly used by the automotive and insurance industries to establish the values of motor vehicles; or

(B) if the entity determining the value is an insurance company, by any other procedure recognized by the insurance industry, including market surveys, that is applied in a uniform manner.

(4) The cost of repairs, including parts and labor, shall be determined by:

(A) using a manual of repair costs or other instrument that is generally recognized and used in the motor vehicle industry to determine those costs; or

(B) an estimate of the actual cost of the repair parts and the estimated labor costs computed by using hourly rate and time allocations that are reasonable and commonly assessed in the repair industry in the community in which the repairs are performed.

(5) The cost of repairs does not include:

(A) the cost of:

(i) repairs related to gradual damage to a motor vehicle;

(ii) repairs related to hail damage; or

(iii) materials and labor for repainting or when the damage is solely to the exterior paint of the motor vehicle; or

(B) sales tax on the total cost of repairs.

(b) Who must apply.

(1) An insurance company licensed to do business in this state that acquires ownership or possession of a nonrepairable or salvage motor vehicle that is covered by a title issued by this state or a manufacturer's certificate of origin shall obtain a nonrepairable or salvage vehicle title or nonrepairable or salvage record of title, as provided by §217.84 of this title (relating to Application for Nonrepairable or Salvage Vehicle Title or Nonrepairable or Salvage Record of Title), before selling or otherwise transferring the nonrepairable or salvage motor vehicle, except as provided by subsection (c) of this section.

(2) A salvage vehicle dealer shall obtain a Nonrepairable or Salvage Vehicle Title or Nonrepairable or Salvage Record of Title, or comparable out-of-state ownership document, before selling or otherwise transferring the motor vehicle, except as provided by §217.88(b) of this title (relating to Sale, Transfer, or Release of Ownership of a Nonrepairable or Salvage Motor Vehicle).

(3) A person, other than an insurance company or salvage vehicle dealer, who acquires ownership of a nonrepairable or salvage motor vehicle that has not been issued a nonrepairable vehicle title, a salvage vehicle title, or a comparable out-of-state ownership document, shall obtain a nonrepairable or salvage vehicle title or nonrepairable or salvage record of title, as provided by §217.84, before selling or otherwise transferring the motor vehicle, unless the motor vehicle will be dismantled, scrapped, or destroyed.

(1) When an insurance company pays a claim on a nonrepairable or salvage motor vehicle and does not acquire ownership of the motor vehicle, the company shall submit through webDEALER to the department before the 31st day after the date of the payment of the claim, on a form prescribed by the department, a report stating that:

(A) the insurance company has paid a claim on the nonrepairable or salvage motor vehicle; and

(B) the insurance company has not acquired ownership of the nonrepairable or salvage motor vehicle.

(2) Upon receipt of the report described in paragraph (1) of this subsection, the department will place an appropriate notation on the motor vehicle record to prevent registration and transfer of ownership prior to the issuance of a salvage or nonrepairable vehicle title or salvage or nonrepairable record of title.

(3) The owner who retained the nonrepairable or salvage motor vehicle to which this subsection applies shall obtain a nonrepairable or salvage vehicle title or nonrepairable or salvage record of title, as provided by §217.84, before selling or otherwise transferring the nonrepairable or salvage motor vehicle.

(4) The owner of an owner retained nonrepairable or salvage motor vehicle may not operate or permit operation of the motor vehicle on a public highway, until the motor vehicle is rebuilt, titled as a rebuilt salvage motor vehicle or rebuilt nonrepairable motor vehicle, if applicable, and is registered in accordance with Subchapter B of this chapter.

(d) Self-insured vehicles. The owner of a nonrepairable or salvage motor vehicle that is self-insured and that has been removed from normal operation by the owner shall apply to the department for a nonrepairable or salvage vehicle title or nonrepairable or salvage record of title, as provided by §217.84, before the 31st day after the damage occurred, and before selling or otherwise transferring ownership of the nonrepairable or salvage motor vehicle.

(e) Casual sales. A salvage vehicle dealer, salvage pool operator, or insurance company that acquires a nonrepairable or salvage motor vehicle shall apply to the department for a nonrepairable or salvage vehicle title or nonrepairable or salvage record of title, in accordance with §217.84, prior to offering the motor vehicle for sale in a casual sale.

(f) Export-only vehicles. A salvage vehicle dealer, including a salvage pool operator acting as agent for an insurance company, or governmental entity that acquires a nonrepairable or salvage motor vehicle and offers it for sale to a non-United States resident shall apply to the department for a nonrepairable or salvage vehicle title, as provided by §217.84, before selling or otherwise transferring the nonrepairable or salvage motor vehicle and before delivery of the nonrepairable or salvage motor vehicle to the buyer. A salvage vehicle dealer or governmental entity shall maintain records of all export-only nonrepairable or salvage motor vehicle sales as provided by §217.88(g).

(g) Voluntary application. A person who owns or acquires a motor vehicle that is not a nonrepairable or salvage motor vehicle may voluntarily, and on proper application, as provided by §217.84, apply for a nonrepairable or salvage vehicle title or nonrepairable or salvage record of title.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 9, 2026.

TRD-202604303

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: October 29, 2026

Proposal publication date: June 26, 2026

For further information, please call: (512) 465-4160

SUBCHAPTER F. MOTOR VEHICLE RECORDS

43 TAC §§217.122, 217.124 - 217.127

STATUTORY AUTHORITY. The department adopts amendments to Chapter 217 under Transportation Code, §730.014, which authorizes the department to adopt rules to administer Transportation Code, Chapter 730, Motor Vehicle Records Disclosure Act; and Transportation Code, §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and duties of the department, as well as the statutes referenced throughout this preamble.

CROSS REFERENCE BY STATUTE. The adopted amendments implement Transportation Code, §§730.014, and 1002.001.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 9, 2026.

TRD-202604304

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: October 29, 2026

Proposal publication date: June 26, 2026

For further information, please call: (512) 465-4160

SUBCHAPTER G. INSPECTIONS

43 TAC §217.143

STATUTORY AUTHORITY. The department adopts amendments to Chapter 217 under Transportation Code, §731.002, which authorizes the board to adopt rules to administer Transportation Code, Chapter 731, Assembled Vehicles; Transportation Code, §731.101, which provides that the board by rule shall establish procedures and requirements for the inspection of assembled vehicles; and Transportation Code, §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and the duties of the department, as well as the statutes referenced throughout this preamble.

CROSS REFERENCE TO STATUTE. The adopted amendments implement Transportation Code, §§731.002, 731.101 and 1002.001.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 9, 2026.

TRD-202604305

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: October 29, 2026

Proposal publication date: June 26, 2026

For further information, please call: (512) 465-4160

SUBCHAPTER J. PERFORMANCE QUALITY RECOGNITION PROGRAM

43 TAC §217.204

STATUTORY AUTHORITY. The department adopts amendments to Chapter 217 under Transportation Code, §520.003, which authorizes the department to adopt rules to administer Transportation Code Chapter 520, Miscellaneous Provisions; Transportation Code, §520.004, which authorizes the department by rule to establish standards for uniformity and service quality for counties; and Transportation Code, §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and duties of the department, as well as the statutes referenced throughout this preamble.

CROSS REFERENCE TO STATUTE. The adopted amendments implement Transportation Code, §§520.003, 520.004, and 1002.001.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 9, 2026.

TRD-202604306

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: October 29, 2026

Proposal publication date: June 26, 2026

For further information, please call: (512) 465-4160

SUBCHAPTER L. ASSEMBLED VEHICLES

43 TAC §217.402, §217.404

STATUTORY AUTHORITY. The department adopts amendments to Chapter 217 under Transportation Code, §731.002, which authorizes the board to adopt rules to administer Transportation Code Chapter 731, Assembled Vehicles; Transportation Code, §731.052, which provides the board by rule shall establish procedures and requirements for issuance of a title for and registration of an assembled vehicle; and Transportation Code, §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and duties of the department, as well as the statutes referenced throughout this preamble.

CROSS REFERENCE TO STATUTE. The adopted amendments implement Transportation Code, §§731.002, 731.052, and 1002.001.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 9, 2026.

TRD-202604307

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: October 29, 2026

Proposal publication date: June 26, 2026

For further information, please call: (512) 465-4160

CHAPTER 218. MOTOR CARRIERS

INTRODUCTION. The Texas Department of Motor Vehicles (department) adopts revisions to 43 Texas Administrative Code (TAC) Chapter 218, Motor Carriers. Specifically, the department adopts amendments to Subchapter A, General Provisions, §218.2; amendments to Subchapter B, Motor Carrier Registration, §218.13 and §218.14, and the repeal of §218.11. These revisions are necessary to aid the regulated community's understanding of the state's expectations for maintenance of a valid United States Department of Transportation (USDOT) number; to remove provisions that are unnecessarily repetitive of statute and cross-references to those provisions; and to conform the rules to the department's current procedures with respect to social security numbers as an application requirement for sole proprietors. The department adopts amendments to §§218.2, 218.13 and 218.14 and adopts the repeal of §218.11 without changes to the proposed text as published in the June 26, 2026, issue of the Texas Register (51 TexReg 4156). The text of the rules will not be republished.

REASONED JUSTIFICATION. An adopted amendment to §218.2 updates the definition of "USDOT number" to include a reference to the related statutory provision, Texas Transportation Code, §643.064, for clarity and ease of reference. This change is necessary because the department adopts the repeal of §218.11, which essentially restates Transportation Code, §643.051 and §643.064. The adopted amendments to the definition of "USDOT number" ensure that in the absence of §218.11, a reader will still be able to identify and understand the statutory requirement under Transportation Code, §643.064 for commercial motor carriers in Texas to have an active USDOT number. Citing the related statutory provision within the rule aids in public understanding and provides a useful reference to the underlying law without unnecessarily repeating statutory language.

An adopted repeal of §218.11 streamlines the department's rules by eliminating provisions that are identical to statutory language. The language in §218.11(a) and (b) is an unnecessary restatement of Transportation Code, §643.051 and §643.064. Relevant language from Transportation Code, §643.064, which has previously been in §218.11(c), is incorporated with these adopted amendments into §218.13. In addition, the adopted definition of "USDOT number" in §218.2 cites to Transportation Code, §643.064 for clarity and ease of reference, as discussed above.

Adopted amendments to §218.13(a)(1) clarify the department's expectations for compliance related to the USDOT number, incorporating and elaborating on language that was previously in repealed §218.11(c) regarding how the department defines a "valid" USDOT number. To be considered "valid," the USDOT number must be active and be the same as the USDOT number used in the carrier's application, as long as the carrier is operating under intrastate authority granted by the department. The adopted amendment informs carriers of the requirement to maintain their USDOT number and thereby aids in compliance.

In addition, recent Texas Attorney General Opinion No. KP-0516 highlighted the strict mandate in place for a licensing authority such as the department to collect social security numbers (SSN) from an applicant for an individual occupational license under Texas Family Code, §231.302(c)(1), which includes a sole proprietor motor carrier who applies for a certificate of registration for intrastate operating authority. Accordingly, the department adopts an amendment to §218.13(a)(3)(B) to clarify that a sole proprietor applying for motor carrier registration must provide an SSN in the application. While this has consistently been department practice, the wording of §218.13(a)(3)(B) could have been read to mean that a sole proprietor could provide an Individual Taxpayer Identification Number rather than an SSN. In contrast, the adopted amendment states plainly that providing an SSN is the only option available for a sole proprietor applying for motor carrier registration in Texas.

The adopted amendments to §218.14(c) remove cross-references to §218.11, which is being repealed. The adopted amendments replace those cross-references with citations to Transportation Code, §643.051, which requires commercial motor carriers to register with the department, and to Transportation Code, §643.054(a), which give the department the authority to issue motor carrier registration in Texas. These amendments clarify the rule and prevent any confusion following the repeal of §218.11.

SUMMARY OF COMMENTS.

No comments were received on the proposed amendments.

SUBCHAPTER A. GENERAL PROVISIONS

43 TAC §218.2

STATUTORY AUTHORITY. The Texas Department of Motor Vehicles (department) adopts the amendment of §218.2 under Transportation Code, §643.003, which authorizes the department to adopt rules to administer Transportation Code, Chapter 643; Transportation Code, §643.051, which states that a motor carrier may not operate a commercial motor vehicle, as defined by Transportation Code, §548.001, on a road or highway in Texas, and may not operate a vehicle, regardless of size, to transport household goods for compensation on a road or highway in Texas unless the motor carrier registers with the department under Subchapter B of Transportation Code, Chapter 643; Transportation Code, §643.064, which provides that a carrier required to register with the department under Subchapter B of Transportation Code, Chapter 643, must maintain an authorized identification number issued to the motor carrier by the Federal Motor Carrier Safety Administration, its successor, or another person authorized to issue the number; and Transportation Code, §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and the duties of the department.

CROSS REFERENCE TO STATUTE. The adopted amendment would implement Transportation Code, Chapters 643 and 1002.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 9, 2026.

TRD-202604283

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: October 29, 2026

Proposal publication date: June 26, 2026

For further information, please call: (512) 465-4160

SUBCHAPTER B. MOTOR CARRIER REGISTRATION

43 TAC §218.11

STATUTORY AUTHORITY. The department adopts the repeal of §218.11 under Transportation Code §643.003, which authorizes the department to adopt rules to administer Transportation Code, Chapter 643; Transportation Code, §643.052, which requires a motor carrier to submit to the department an application on a form prescribed by the department to register under Subchapter B of Transportation Code, Chapter 643, as well as the required components of the application, which include information the department by rule determines is necessary for the safe operation of a motor carrier under Transportation Code, Chapter 643; Transportation Code, §643.053, which provides additional requirements for an application filed with the department under Transportation Code, §643.052; Transportation Code, §643.054, which authorizes the department to deny an application for registration under certain circumstances, in addition to authorizing the department to adopt simplified procedures for the registration of motor carriers transporting household goods as agents for carriers required to register under Transportation Code, Chapter 643; Transportation Code, §643.056, which requires a motor carrier that is required to register under Subchapter B of Transportation Code, Chapter 643, to supplement the motor carrier's application for registration under certain circumstances; Transportation Code, §643.058, which specifies the requirements for a motor carrier to apply for renewal of registration issued under Subchapter B of Transportation Code, Chapter 643, as well as the authority for the department to deny an application for renewal of registration; Transportation Code, §643.0585, which specifies the requirements for a motor carrier to apply for reregistration after its registration has been revoked, as well as the authority for the department to deny an application for reregistration; Transportation Code, §643.061, which authorizes the department to adopt rules to vary the registration period under Subchapter B of Transportation Code, Chapter 643; Transportation Code, §643.064, which provides that a carrier required to register with the department under Subchapter B of Transportation Code, Chapter 643, must maintain an authorized identification number issued to the motor carrier by the Federal Motor Carrier Safety Administration, its successor, or another person authorized to issue the number; and Transportation Code §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and the duties of the department.

CROSS REFERENCE TO STATUTE. The adopted repeal implements Transportation Code, Chapters 643 and 1002.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 9, 2026.

TRD-202604285

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: October 29, 2026

Proposal publication date: June 26, 2026

For further information, please call: (512) 465-4160

43 TAC §218.13, §218.14

STATUTORY AUTHORITY. The department adopts amendments to §218.13 and §218.14 under Transportation Code, §643.003, which authorizes the department to adopt rules to administer Transportation Code, Chapter 643; Transportation Code, §643.052, which requires a motor carrier to submit to the department an application on a form prescribed by the department to register under Subchapter B of Transportation Code, Chapter 643, as well as the required components of the application, which include information the department by rule determines is necessary for the safe operation of a motor carrier under Transportation Code, Chapter 643; Transportation Code, §643.053, which provides additional requirements for an application filed with the department under Transportation Code, §643.052; Transportation Code, §643.054, which authorizes the department to deny an application for registration under certain circumstances, in addition to authorizing the department to adopt simplified procedures for the registration of motor carriers transporting household goods as agents for carriers required to register under Transportation Code, Chapter 643; Transportation Code, §643.056, which requires a motor carrier that is required to register under Subchapter B of Transportation Code, Chapter 643, to supplement the motor carrier's application for registration under certain circumstances; Transportation Code, §643.058, which specifies the requirements for a motor carrier to apply for renewal of registration issued under Subchapter B of Transportation Code, Chapter 643, as well as the authority for the department to deny an application for renewal of registration; Transportation Code, §643.0585, which specifies the requirements for a motor carrier to apply for reregistration after its registration has been revoked, as well as the authority for the department to deny an application for reregistration; Transportation Code, §643.061, which authorizes the department to adopt rules to vary the registration period under Subchapter B of Transportation Code, Chapter 643; Transportation Code, §643.064, which provides that a carrier required to register with the department under Subchapter B of Transportation Code, Chapter 643, must maintain an authorized identification number issued to the motor carrier by the Federal Motor Carrier Safety Administration, its successor, or another person authorized to issue the number; Family Code, §231.302, which compels licensing authorities like the department to collect social security numbers from an individual applicant for a professional license; Transportation Code, §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and the duties of the department; and Government Code, §2001.004(1), which requires state agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures.

CROSS REFERENCE TO STATUTE. The adopted amendments would implement Transportation Code, Chapters 643 and 1002; Family Code, Chapter 231; and Government Code, Chapter 2001.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 9, 2026.

TRD-202604284

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: October 29, 2026

Proposal publication date: June 26, 2026

For further information, please call: (512) 465-4160