Section 224.58 - [Effective 7/1/2025] Denial of Dealer Access to License Plate System(a) In this section "fraudulently obtained license plates from the license plate system " means misuse by a dealer account user of the license plate system authorized under Transportation Code, §503.063, §503.0631, or §503.065 to obtain or issue: (1) an excessive number of license plates relative to dealer sales;(2) a license plate for a vehicle or vehicles not in the dealer's inventory (a vehicle is presumed not to be in the dealer's inventory if the vehicle is not listed in the relevant monthly Vehicle Inventory Tax Statement);(3) access to the license plate system for a fictitious user or person using a false identity;(4) a license plate for a vehicle or a motor vehicle when a dealer is no longer operating at a licensed location;(5) a license plate for a vehicle or a motor vehicle not located at the dealer's licensed location or storage lot; or(6) a license plate for a vehicle or motor vehicle that is not titled or permitted by law to be operated on a public highway.(b) The department shall deny a dealer access to the license plate system effective on the date the department sends notice electronically and by certified mail to the dealer that the department has determined, directly or through an account user, that the dealer has fraudulently obtained or issued a license plate in the license plate system. A dealer may seek a negotiated resolution with the department by demonstrating the dealer took corrective action or that the department's determination was incorrect.(c) Notice shall be sent to the dealer's last known mailing address and last known email address in the department-designated licensing system.(d) A dealer may request a hearing on the denial of access to the license plate system, as provided by Subchapter O, Chapter 2301, Occupations Code. The request must be in writing and the dealer must request a hearing under this section. The department must receive the written request for a hearing within 26 days of the date of the notice denying access to the license plate system. The request for a hearing does not stay the denial of access under subsection (b) of this section. A dealer may continue to seek a negotiated resolution with the department after a request for hearing has been submitted under this subsection by demonstrating the dealer took corrective action or that the department's determination was incorrect.(e) The department may also issue a Notice of Department Decision stating administrative violations as provided in § 224.56 of this title (relating to Notice of Department Decision) concurrently with the notice of denial of access under this section. A Notice of Department Decision may include notice of any violation, including a violation listed under subsection (a) of this section.(f) A department determination and action denying access to the license plate system becomes final if the dealer does not request a hearing or enter into a settlement agreement with the department within 26 days of the date of the notice denying access to the license plate system.43 Tex. Admin. Code § 224.58
Adopted by Texas Register, Volume 49, Number 17, April 26, 2024, TexReg 2780, eff. 6/1/2024; Amended by Texas Register, Volume 49, Number 45, November 8, 2024, TexReg 9020, eff. 7/1/2025