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 allows 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 specifies that upon the sale or transfer of a motor vehicle, dealers must remove the license plates and may transfer them to another vehicle if appropriate, while also requiring the seller to obtain departmental approval for such transfers.

The legislation also mandates that any license plates removed from a vehicle that are not transferred to another must be disposed of according to department guidelines within ten days. The bill includes provisions for the Texas Department of Motor Vehicles to adopt necessary rules to implement these changes by October 1, 2025, and it will take effect on July 1, 2025, provided it receives a two-thirds vote from both houses; otherwise, it will take effect on September 1, 2025.