S.B. No. 1902 amends the Transportation Code regarding the administration of dealer-issued license plates and the procedures for their removal and transfer. The bill introduces new provisions that allow the Texas Department of Motor Vehicles to deny access to the dealer-issued license plates database if a dealer is found to be fraudulently obtaining or using license plates or has been denied access to the temporary tag database. Additionally, the bill outlines the responsibilities of dealers and sellers regarding the removal and transfer of license plates upon the sale or transfer of a motor vehicle.

Key changes include the requirement for dealers to remove license plates from vehicles sold to other dealers and to transfer those plates to a new vehicle if appropriate. For private sales, sellers must also remove the license plates and may transfer them to another vehicle titled in their name, contingent upon obtaining departmental approval. The bill eliminates previous language that mandated the assignment of license plates to subsequent purchasers at retail sale. The Texas Department of Motor Vehicles is tasked with adopting necessary rules to implement these changes by October 1, 2025, with the act set to take effect on July 1, 2025, pending legislative approval.