The advisory committee discussed proposed Chapter 2.15 and 2.17 changes that address when dealers must remove, transfer, destroy or return license plates after a vehicle sale, and how auctions, consignments and specialty plates should be handled under House Bill 718 and Senate Bill 1902.

Annette Quintero described the draft 2.15 and 2.17 language: dealers "shall remove plates" upon sale or transfer and may transfer removed plates to another vehicle if the new vehicle is in the same classification and county tax assessor-collector approval applies. If plates are not transferred within 10 days, the rule would require the dealer to "destroy, recycle, or return" them in accordance with the statute.

Committee members sought clarity on several recurring scenarios: remote transactions where dealers do not see the trade-in vehicle at the time the sales terms are agreed, wholesale and public auctions, and consigned vehicles from non-dealers. Member Hall worried about how remote sales would work in practice and whether the statute’s language would compel dealers to attempt immediate transfers when the dealer never physically holds the trade-in at the point of sale.

Laura Moriarty, the agency’s general counsel, said the statute includes both "shall" language to remove plates from the traded vehicle and "may" language for reassigning those plates to another vehicle. "We have drafted the rules aware of the limitations of our own enforcement powers," she said, and staff will focus enforcement on whether plates older than 10 days remain in inventory.

Members also asked about specialty plates. Ashley Healy, deputy general counsel, said the system will allow a dealer to assign a specialty plate to a newly purchased vehicle in the system—even if the registration sticker has not yet been issued—so the plate can be recorded and law enforcement can be notified for stop checks. Healy said the back-end system includes validation to ensure an assigned plate exists in inventory or is properly entered.

On consignment and auctions, draft language distinguishes between wholesale auctions and public auctions and allows different handling depending on whether the buyer is a Texas retail buyer, a dealer, an export buyer, or an out-of-state buyer. For consigned vehicles from non-dealers, the draft requires removal and return of any plate to the owner.

Members recommended clarifying rule language (for example, replacing the phrase "unassigned license plate" in enforcement text) and simplifying consignment options so dealers have a single, clear path (for example, return the plate to the consignor or destroy it). Quintero and staff said they would draft clearer language for the board packet.