Current through Reg. 50, No. 1; January 3, 2025
Section 215.152 - [Effective 7/1/2025] Obtaining Dealer-Issued Buyer's License Plates(a) A dealer or governmental agency is required to have internet access to connect to webDEALER and the license plate system maintained by the department and is responsible for verifying receipt of license plates in the license plate system.(b) Except as provided by § 215.157 of this title (relating to Issuing Buyer's License Plates and License Plate Receipts When Internet Not Available) before a license plate may be issued or secured on a vehicle, a dealer or governmental agency must enter in the license plate system true and accurate information about:(3) the license plate number issued or assigned to the vehicle.(c) The department will inform each dealer annually of the maximum number of buyer's license plates the dealer is authorized to obtain during the calendar year under Transportation Code, §503.063, including:(1) an allotment of unassigned buyer's license plates to be issued to a buyer of a vehicle that is to be titled and registered in Texas, and(2) a separate allotment of buyer's temporary license plates to be issued to a non-resident buyer for a vehicle that will be registered and titled in another state.(d) The department will calculate a dealer's maximum annual allotment of unassigned buyer's license plates and buyer's temporary license plates based on the following formula: (1) Vehicle title transfers, sales, or license plate issuance data determined from the department's systems from the previous fiscal year;(2) the total value of paragraph (1) of this subsection will be increased by a multiplier based on the dealer's time in operation giving a 10 percent increase for each year the dealer has been in operation up to 10 years; and(3) the total value of paragraph (2) of this subsection will be increased by a multiplier that is the greater of: (A) the dealer's actual growth rate percentage identified from the preceding two fiscal years, calculated by the growth of the number of in-state or out-of-state sales transactions processed through the department-designated registration and title system or license plate system, except that it may not exceed 200 percent; or(B) the statewide actual growth rate percentage identified from the preceding two fiscal years, calculated by the growth of the number of relevant transactions processed through the department-designated registration and title system or license plate system, not less than zero, to determine the dealer's annual allotment; and(4) the department may increase the annual allotment for dealers in the state, in a geographic or population area, or in a county, based on: (A) changes in the market;(B) temporary conditions that may affect sales; and(C) any other information the department considers relevant.(e) A dealer licensed after the commencement of a calendar year shall be allocated the number of buyer's license plates and buyer's temporary plates allocated in this subsection prorated on all or part of the remaining months until the commencement of the calendar year after the dealer's initial license expires. The initial allocations shall be as determined by the department in granting the license, but not more than: (1) 200 buyer's license plates and 100 buyer's temporary license plates for a franchised dealer unless the dealer provides credible information indicating that a greater number of buyer's license plates is warranted based on anticipated sales, and growth, to include new and used vehicle sales, including information from the manufacturer or distributor, or as otherwise provided in this section.(2) 100 buyer's license plates and 48 buyer's temporary license plates for a nonfranchised dealer unless the dealer provides credible information indicating that a greater number of license plates is warranted based on anticipated sales as otherwise provided in this section.(f) An existing dealer that is:(1) moving its operations from one location to a different location will continue with its allotment of buyer's license plates and buyer's temporary license plates and not be allocated license plates under subsection (e) of this section;(2) opening an additional location will receive a maximum allotment of buyer's license plates and buyer's temporary license plates based on the greater of the allotment provided to existing locations, including franchised dealers opening additional locations for different line makes, or the amount under subsection (e) of this section;(3) purchased as a buy-sell ownership agreement will receive the maximum allotment of buyer's license plates and buyer's temporary license plates provided to the location being purchased and not be allocated license plates under subsection (e) of this section; and(4) inherited by will or laws of descent will receive the maximum allotment of buyer's license plates and buyer's temporary license plates provided to the location being inherited and not be allocated license plates under subsection (e) of this section.(g) A new dealer may also provide credible information supporting a request for additional buyer's license plates and buyer's temporary license plates to the amount allocated under subsection (e) of this section based on: (1) franchised dealer, manufacturer, or distributor sales expectations;(2) a change in GDN required by death or retirement, except as provided in subsection (f) of this section;(3) prior year's sales by a dealer moving into the state; or(4) other similar change of location or ownership that indicates some continuity in existing operations.(h) The annual allotment of buyer's issue license plates and buyer's temporary license plates will each be divided by four and allocated to a dealer on a quarterly basis, unless a dealer sells only antique or special interest vehicles as defined by Transportation Code, §683.077(b), in which case each allocation may be divided by two and allocated on a half-yearly basis. A dealer's remaining unissued license plates at the end of the allocation period will count towards the dealer's next allotment.(i) A dealer may request more buyer's license plates or buyer's temporary license plates: (1) after using 50 percent of the quarterly allocation of general issue plates or buyer temporary plates, a dealer may request an advance on the next quarter's allotment; or(2) after using 50 percent of the allotted annual maximum number of general issue plates or buyer temporary plates a dealer may request an increase in the annual allotted number of license plates.(j) To receive more buyer's license plates or buyer's temporary license plates under subsection (i), a dealer must submit a request in the department's designated license plate system.(k) A dealer requesting an increase in the maximum annual allotment of buyer's license plates or buyer's temporary license plates must provide information demonstrating the need for additional license plates results from business operations, including anticipated needs, as required by Transportation Code, §503.0633(c). Information may include documentation of sales and tax reports filed as required by law, information of anticipated need, or other information of the factors listed in Transportation Code, §503.0633(b). (1) The department shall consider the information presented and may consider information not presented that may weigh for or against granting the request that the department in its sole discretion determines to be relevant in making its determination. Other relevant information may include information of the factors listed in Transportation Code, §503.0633(b), the timing of the request, and the requestor's license plate activity.(2) The department may allocate a lesser or greater number of additional license plates than the amount requested. Allocation of a lesser or greater number of additional license plates is not a denial of the request. Allocation of additional license plates under this paragraph does not limit the dealer's ability to submit additional requests for more license plates.(3) If a request is denied, the denial will be sent to the dealer by email to the requestor's email address. (A) A dealer may appeal the denial to the designated director in the Vehicle Titles and Registration Division.(B) The appeal must be requested though the designated license plate system within 15 days of the date the department emailed the denial to the dealer.(C) The appeal may discuss information provided in the request but may not include additional information.(D) The designated director in the Vehicle Titles and Registration Division will review the appeal and any additional statements concerning the information submitted in the original request and render an opinion within 15 days of receiving the appeal. The designated director in the Vehicle Titles and Registration Division may decide to deny the appeal and issue no additional license plates or award an amount of additional license plates that is lesser, equal to, or greater than the request.(E) The requesting dealer will be notified as follows:(i) If the designated director in the Vehicle Titles and Registration Division decides to deny the appeal, the department will contact the requesting dealer by email regarding the decision and options to submit a new request with additional relevant credible supporting documentation or to pursue a claim in district court; or(ii) If the designated director in the Vehicle Titles and Registration Division awards an amount of additional license plates that is lesser, equal to, or greater than the request, the additional license plates will be added to the dealer's allocation and the dealer will be contacted by email regarding the decision, informed that the request has not been denied, and options to submit a new request.(4) The designated director in the Vehicle Titles and Registration Division's decision on appeal is final.(5) Once a denial is final, a dealer may only submit a subsequent request for additional license plates during that calendar year if the dealer is able to provide additional information not considered in a prior request.(l) A change in the allotment under subsection (i) of this section does not create a dealer base for subsequent year calculations.(m) The department may at any time initiate an enforcement action against a dealer if license plate system activity suggests that misuse or fraud has occurred as described in Transportation Code §503.0633(f) or §503.0671.43 Tex. Admin. Code § 215.152
The provisions of this §215.152 adopted to be effective February 11, 2010, 35 TexReg 883; Amended by Texas Register, Volume 42, Number 06, February 10, 2017, TexReg 578, eff. 2/13/2017; Amended by Texas Register, Volume 45, Number 42, October 16, 2020, TexReg 7441, eff. 10/21/2020; Amended by Texas Register, Volume 47, Number 08, February 25, 2022, TexReg 0954, eff. 2/14/2022; Amended by Texas Register, Volume 49, Number 17, April 26, 2024, TexReg 2726, eff. 6/1/2024; Amended by Texas Register, Volume 49, Number 45, November 8, 2024, TexReg 8968, eff. 7/1/2025