DEALER-ISSUED LICENSE PLATES FOR BUYER.

(a) Except as provided by this section, a dealer shall issue to a person who buys a vehicle:

(1) a license plate or set of license plates, if a license plate is required by law to be displayed on the vehicle; and

(2) a completed and signed form required by, as applicable, Section 503.0631(c) or (d).

(b) A license plate or set of license plates issued under this section is valid for the operation of the vehicle while the registration application submitted by the dealer on behalf of the buyer under Section 501.0234 is pending.

(c) Except as otherwise provided by this subsection, at the time of issuance of a license plate or set of license plates under this section, the dealer is responsible for displaying the license plate or set of license plates in compliance with department rules. If a vehicle is a passenger car or light truck that is not equipped by the manufacturer with an exterior front feature to which a license plate may be fastened without drilling through the exterior of the vehicle, the dealer shall affix the rear license plate in compliance with department rules and provide the unmounted remaining license plate to the vehicle buyer.

(d) The dealer is responsible for the safekeeping and distribution of each license plate or set of license plates the dealer obtains from the department. The dealer is liable for missing or misused license plates. The department may conduct a review of a dealer's compliance with this subsection.

(e) A dealer shall obtain license plates and sets of license plates from the department in the manner provided by department rules.

(f) The department shall ensure that a dealer may obtain in advance a sufficient amount of license plates or sets of license plates in order to continue selling vehicles without an unreasonable disruption of business due to the unavailability of license plates. The department shall establish an expedited procedure to allow a dealer to obtain additional license plates or sets of license plates so the dealer may remain in business.

(g) For each license plate or set of license plates issued to a buyer under this section, the dealer shall charge the buyer a registration fee prescribed by the department to be sent to the comptroller for deposit to the credit of the Texas Department of Motor Vehicles fund.

(h) A federal, state, or local governmental agency that is exempt under Section 503.024 from the requirement to obtain a dealer general distinguishing number may issue one license plate or set of license plates in accordance with this section for a vehicle sold or otherwise disposed of by the governmental agency under Chapter 2175, Government Code, or other law that authorizes the governmental agency to sell or otherwise dispose of the vehicle. A governmental agency that issues a license plate or set of license plates under this subsection:

(1) is subject to the provisions of Section 503.0631 applicable to a dealer; and

(2) is not required to charge the registration fee under Subsection (g).

(i) A vehicle may be issued and display a temporary license plate under this section without satisfying the inspection requirements of Chapter 548 if:

(1) the buyer of the vehicle is not a resident of this state; and

(2) the vehicle:

(A) at the time of purchase, is not located or required to be titled or registered in this state;

(B) will be titled and registered in accordance with the laws of the buyer's state of residence; and

(C) will be inspected in accordance with the laws of the buyer's state of residence, if the laws of that state require inspection.

(i-1) A temporary license plate issued to a vehicle described by Subsection (i) is valid for 60 days.

(j) A vehicle may be issued and display a license plate or set of license plates under this section without satisfying the inspection requirements of Chapter 548 if the vehicle is purchased at public auction in this state and is:

(1) an antique vehicle as defined by Section 683.077(b); or

(2) a special interest vehicle as defined by Section 683.077(b) that:

(A) is at least 12 years of age; and

(B) has been the subject of a retail sale.

(k) A dealer may not issue a license plate or set of license plates for a vehicle that is exempt from the payment of registration fees under Subchapter J, Chapter 502, until the department approves the application for registration of the vehicle.