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TxDMV Proposes Rule Changes to Advance Metal Plate Transition

The Texas Department of Motor Vehicles (TxDMV) is moving forward with the transition from paper tags to metal plates by proposing new rule changes. These proposed changes, published in the July 12, 2024, issue of the Texas Register, are the next step in the process. In addition to the metal plate transition, there are other proposed rule revisions that dealers should review. The public can comment on these changes until 5:00 p.m. on August 12, 2024. For more information, you can access the full text of the proposed rules on the TxDMV website.

Meet TxDMV at the 2024 TIADA Conference & Expo

We are excited to remind you that TxDMV will attend the 2024 TIADA Conference & Expo. Join TxDMV for a general session presentation and a breakout education session, and visit their booth in the Expo Hall to discuss these upcoming changes and more. This is a great opportunity to engage directly with TxDMV representatives and get your questions answered. Top TxDMV management from licensing, titling, and enforcement will be available at the booth to discuss any issues dealers may have in any of those areas.

Register for the 2024 TIADA Conference & Expo

Don't miss out on this chance to stay informed and involved in the regulatory changes affecting Texas automobile dealers.

Summary of Proposed Changes

1. Revisions to 43 TAC Chapter 215

These revisions involve implementing House Bill (HB) 718 and Senate Bill (SB) 224, passed during the 88th Legislature, Regular Session (2023), and general cleanup of the chapter's language.

  • HB 718: This bill mandates the elimination of temporary tags in favor of license plates, effective July 1, 2025. This change requires the TxDMV to develop new systems for distributing these plates.

  • SB 224: This bill introduces new record-keeping and inspection requirements for catalytic converters, effective since May 29, 2023.

Financial Impact: The implementation costs range between $13.5 million and $21.5 million annually over the first five years. However, these will be offset by a new $10 license plate fee.

2. Revisions to 43 TAC Chapter 217

These amendments also relate to the implementation and cleanup following HB 718 and HB 3297. Specific changes focus on the transition from temporary tags to permanent license plates and associated processes.

3. Revisions to 43 TAC §221.54

Amendments here address the failure of salvage vehicle dealers to manage license plates properly. Criteria are added for prioritizing site visits by the Enforcement Division.

4. Revisions to 43 TAC §224.58

Changes in this section are aimed at denying fraudulent access to the license plate system, implementing provisions of HB 718, which mandates monitoring license plate distribution and use by dealers.

New Rule: 43 TAC §215.124

A new rule proposes guidelines for mobile warranty and recall repairs by franchised dealers.

How to Submit Comments

Public participation is crucial. Submit your comments or requests for a public hearing by 5:00 p.m. CDT on August 12, 2024. Here's how:

  • Email: Send to rules@txdmv.gov

  • Mail: Address to Office of General Counsel, Texas Department of Motor Vehicles, 4000 Jackson Avenue, Austin, Texas 78731

Involvement and Feedback

Stakeholders, including the TIADA, have provided feedback on these proposals. This is an opportunity for our members to ensure their voices are heard on these significant regulatory changes.

For further details on the proposed rules and to review the full text, visit the TxDMV website.

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