DMV outlines metal‑tag rollout, says modernization remains priority after HB 7 18 implementation

Daniel Levithia, executive director of the Texas Department of Motor Vehicles, told the House Committee the agency completed the operational rollout to replace paper temporary tags with metal plates after passage of House Bill 7 18 and that the production and distribution effort required major logistical work statewide.

“The production and distribution of 3,900,000 license plates in advance of the bill's effective date and the provision of training for 17,248 Texas dealers,” Levithia said, summarizing the operational scale of the implementation. He said the department implemented related warehousing, inventory management and dealer training to limit fraud tied to temporary tags and that the system is now stable.

Levithia acknowledged the program affected processing times in some areas and that the department continues work to reduce wait times. He also reported the agency’s larger technology priority: a multi‑biennium modernization of the registration and titling system that he said will allow electronic title and registration and more automated processing. “We were appropriated $125,000,000 for phase 2 of the modernization project,” Levithia told the committee, adding the effort aims to replace a 30‑year‑old system with a modern, secure platform.

Lawmakers pressed for additional contract and accounting detail about the HB 7 18 implementation costs and asked whether reserves labeled in previous reports (Fund 10) were tapped for the work. Levithia said the agency had spent $27,800,000 implementing HB 7 18 against a $35,000,000 budget and confirmed Fund 10 also funds some modernization and campus projects. He offered to provide contract documents and a detailed accounting to members who requested them.

Dealer groups and county tax offices testified later in the hearing that while the rollout ultimately stabilized, dealers and county staff experienced problems during the transition and want continued attention to dealer licensing timeliness, electronic transactions and more frequent engagement with advisory committees.

The DMV asked lawmakers to preserve the modernization funding and support the agency’s plan to digitize vehicle titling and registration workflows; Levithia said the department is in procurement for the core system and that the modernization project remains its top operational priority.