New Dealer Licensing Rules Proposed by TxDMV

TxDMV recently published proposed rules relating to the licensing of dealers in Texas. Now that the proposed rules are published, the law allows interested stakeholders such as TIADA and yourself to weigh in on the proposed rules through both written comments and public testimony.

TxDMV's Proposed New Rules and TIADA's Comments

TIADA is drafting written comments on behalf of its members and will shortly begin to prepare for oral testimony on behalf of dealers. If you would like to make your own comments, you can do so by emailing them to or by mail to Office of General Counsel, Texas Department of Motor Vehicles, 4000 Jackson Avenue, Austin, Texas 7831 by 5:00 p.m. CST on November 28, 2022.

Here are just a few sections of the proposed rule that TIADA will comment on:

  • TxDMV is proposing new requirements to the application process requiring dealers to list a manager who is in-state and someone in charge of temporary tags.
  • TxDMV is proposing language requiring dealers to provide information related to insolvency–including outstanding or unpaid judgments and liens–so the department can evaluate financial trustworthiness and stability.
  • TxDMV is proposing amendments that allow it to require any information or documents it deems necessary.
  • TxDMV is proposing adding language that it can require a site visit to a dealer's established and permanent place of business as part of the application evaluation process for a new, renewal, or new location application.
  • TxDMV is proposing adding a requirement that the dealer's office may not be located in a restaurant, gas station, or convenience store unless the office has a separate entrance door that does not require a dealer's customer to pass through the other unrelated business.

Before finishing TIADA's comments, I will meet with numerous dealers for their input on how the proposed rules will impact their business. If you have comments or concerns that you would like to share with TIADA, please don't hesitate to call me to discuss them.


By: Kip Niles
On: 11/03/2022 18:39:14
In reference to TxDMV is proposing amendments that allow it to require any information or documents it deems necessary. One of our stores recently became a victim of this proposal. We were adding a new line to an existing dealership and had to mitigate the requirement to allow three other existing line, makes to approve this new line, make as you can imagine that did not go well.
By: Earl Cooke
On: 11/04/2022 09:58:01
Kip, Thank you for commenting. TIADA plans to include in its comments the fact that some of these "proposed rules" were already implemented prior to the public having a chance to provide input.
By: Mike Stepchinski
On: 11/15/2022 15:15:34
These proposals will simply make it more burdensome to remain in business. The renewal process has already become more burdensome with the fingerprint requirement, now they want to do a site visit each renewal? How many agents will they have to visit the hundreds or thousands of dealers each month? How will they calculate a dealer's financial stability? Are they just going to yank licenses from dealers that have been in business for years?
By: Earl Cooke
On: 11/15/2022 16:43:49
Mike, thank you very much for your comment on this. TIADA plans to comment on these proposed rules, and TxDMV will take them into consideration. TIADA understands that these rules based on 109 bad actors out of 18,000 licensees are burdensome. Fortunately, from our conversations with TxDMV, they do not plan on a site visit for every dealer. TIADA also believes determining a dealer's financial stability is best determined by bond issuers as it currently is. I assure you we will be monitoring the situation and representing your concerns.

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