Dear Texas Dealer,
We are writing to provide more information about the Texas Department of Motor Vehicles (TxDMV) Dealer Compliance Services (DCS) section of the Enforcement Division and how it can be a resource to your business. DCS was established in July 2024, as part of the implementation of House Bill (HB) 718, to administer new compliance requirements for dealer premises and license plate management across the State of Texas.
DCS staff are tasked with providing statewide oversight to ensure dealers meet updated standards by conducting premise inspections of dealer locations, performing inventory audits of assigned license plates, and documenting deficiencies and violations through compliance reports. This is not intended to be a scary process; our staff are directed to use these activities as opportunities to continue educating the dealer community about the new regulations and support you in serving your customers effectively.
To support this mission, TxDMV deployed a team of 24 Dealer Compliance Specialists across Texas. Their responsibilities include:
- Reviewing dealer premise requirements as established in Texas Administrative Code 215.140;
- Verifying physical premise and security measures associated with license plates;
- Ensuring accurate metal plate inventory, usage, and data entry into department systems; and
- Detecting and mitigating potential fraud, waste, or abuse of department resources.
What to Expect During a Dealer Visit
Dealer Compliance Specialists will visit your location for an educational visit or compliance review in an official marked Texas Department of Motor Vehicles (TxDMV) fleet vehicle and will present a TxDMV photo identification credential. DCS specialists will request to speak with the individual responsible for metal plate inventory and generally seek to review standard premise requirements, inspect department-issued metal plate inventories and other state property held by the dealer, and confirm that metal plate security and storage requirements are met.
A Dealer Compliance Specialist may take photos or videos of the physical premises and plate security setup. If opportunities for improvement are identified, best business practice education will be provided to dealer staff at the location. Dealers will have the opportunity to ask questions and will receive contact information for future support.
Available Resources
To support your operations, we encourage dealers to use the following tools:
¶ Plates must be stored in a locked and secured room or closet, or a securely locked, substantially constructed safe or steel cabinet bolted or affixed to the floor or wall in such a way that the safe or steel cabinet cannot be readily removed.
¶ The dealer must maintain restricted access to plates to only authorized personnel.
¶ License plates must be stored at the dealer’s licensed address.
We appreciate your continued partnership in maintaining compliance and supporting the integrity of dealer operations across Texas. Please contact us at DealerCompliance@TxDMV.gov with questions or other requests.
Thank you,
Texas Department of Motor Vehicles
Dealer Compliance Services
Enforcement Division
