(a) In this section, “converter” means a person who holds a converter’s license issued under Chapter 2301, Occupations Code.
(b) A converter may issue a temporary tag for use on an unregistered vehicle by the converter or the converter’s employees only to:
(1) demonstrate or cause to be demonstrated to a prospective buyer who is an employee of a franchised motor vehicle dealer the vehicle; or
(2) convey or cause to be conveyed the vehicle:
(A) from one of the converter’s places of business in this state to another of the converter’s places of business in this state;
(B) from the converter’s place of business to a place the vehicle is to be assembled, repaired, reconditioned, modified, or serviced;
(C) from the state line or a location in this state where the vehicle is unloaded to the converter’s place of business;
(D) from the converter’s place of business to a place of business of a franchised motor vehicle dealer; or
(E) to road test the vehicle.

(c) Subsection (b)(1) does not prohibit a converter from permitting a prospective buyer who is an employee of a franchised motor vehicle dealer to operate a vehicle while the vehicle is being demonstrated.
(d) A vehicle being conveyed while displaying a temporary tag issued under this section is exempt from the inspection requirements of Chapter 548.
(e) The department may not issue a converter temporary tag or contract for the issuance of a converter temporary tag but shall prescribe:
(1) the specifications, form, and color of a converter temporary tag;
(2) procedures for a converter to generate a vehicle-specific number using the database developed under § 503.0626 and assign it to each tag; and
(3) procedures to clearly display the vehicle-specific number on the tag.
(f) A converter or employee of a converter may not use a temporary tag issued under this section as authorization to operate a vehicle for the converter’s or the employee’s personal use.

Text of section effective until July 01, 2025

(a) In this section, “converter” means a person who holds a converter’s license issued under Chapter 2301, Occupations Code.
(b) A converter may issue a temporary tag for use on an unregistered vehicle by the converter or the converter’s employees only to:
(1) demonstrate or cause to be demonstrated to a prospective buyer who is an employee of a franchised motor vehicle dealer the vehicle; or
(2) convey or cause to be conveyed the vehicle:
(A) from one of the converter’s places of business in this state to another of the converter’s places of business in this state;
(B) from the converter’s place of business to a place the vehicle is to be assembled, repaired, reconditioned, modified, or serviced;
(C) from the state line or a location in this state where the vehicle is unloaded to the converter’s place of business;
(D) from the converter’s place of business to a place of business of a franchised motor vehicle dealer; or
(E) to road test the vehicle.

(c) Subsection (b)(1) does not prohibit a converter from permitting a prospective buyer who is an employee of a franchised motor vehicle dealer to operate a vehicle while the vehicle is being demonstrated.
(d) A vehicle being conveyed while displaying a temporary tag issued under this section is exempt from the inspection requirements of Chapter 548.
(e) The department may not issue a converter temporary tag or contract for the issuance of a converter temporary tag but shall prescribe:
(1) the specifications, form, and color of a converter temporary tag;
(2) procedures for a converter to generate a vehicle-specific number using the database developed under § 503.0626 and assign it to each tag; and
(3) procedures to clearly display the vehicle-specific number on the tag.
(f) A converter or employee of a converter may not use a temporary tag issued under this section as authorization to operate a vehicle for the converter’s or the employee’s personal use.

Text of section effective until July 01, 2025