S.B. No. 1902 amends the Transportation Code to enhance the administration of the dealer-issued license plates database and outlines the procedures for the removal and transfer of license plates. The bill specifies that if the Texas Department of Motor Vehicles determines that a dealer is fraudulently obtaining or using license plates, or has been denied access to the temporary tag database, the department may deny the dealer access to the dealer-issued license plates database after providing notice. Additionally, the bill introduces new provisions regarding the removal and transfer of license plates during the sale or transfer of motor vehicles, including requirements for dealers and private sellers.

Key changes include the requirement for dealers to remove license plates from sold vehicles and transfer them to another vehicle if appropriate, as well as the stipulation that removed plates must be disposed of properly if not transferred. The bill also mandates that the Texas Department of Motor Vehicles adopt necessary rules to implement these changes by October 1, 2025. The act is set to take effect on July 1, 2025, contingent upon receiving a two-thirds vote from both houses of the legislature; otherwise, it will take effect on September 1, 2025.