1. (a) The number of metal dealer plates a dealer may order for business use is allocated based on the type of license applied for and the number of vehicles sold during the previous year. New license applicants are allotted a predetermined number of metal dealer plates during the first license term.

2. (b) The maximum number of metal dealer plates issued to a new license applicant during the first license term is, unless otherwise qualified to receive more:

   1. (1) Franchised motor vehicle dealer - 5;
   2. (2) Franchised motorcycle dealer - 5;
   3. (3) Independent motor vehicle dealer - 2;
   4. (4) Independent motorcycle dealer - 2;
   5. (5) Franchised or independent travel trailer dealer - 2;
   6. (6) Utility trailer or semi-trailer dealer - 2;
   7. (7) Independent mobility vehicle dealer - 2; and
   8. (8) Wholesale dealer - 1.

3. (c) A newly licensed dealership with a previous license status is not subject to the initial allotment limits described in subsection (b) of this section, and may rely on that previous license status to obtain dealer plates, if it is:

   1. (1) a franchised dealership that has been subject to a buy-sell agreement, regardless of a change in the entity or ownership; or
   2. (2) any type of dealer that relocates and has been licensed for a period of one year or longer.

4. (d) The maximum number of dealer plates issued to a motor vehicle dealer per license term is:

   1. (1) Franchised motor vehicle dealer - 30;
   2. (2) Franchised motorcycle dealer - 10;
   3. (3) Independent motor vehicle dealer - 3;
   4. (4) Independent motorcycle dealer - 3;
   5. (5) Franchised or independent travel trailer dealer - 3;
   6. (6) Utility trailer or semi-trailer dealer - 3;
   7. (7) Independent mobility vehicle dealer - 3; and
   8. (8) Wholesale dealer - 1.

5. (e) A dealer may obtain more than the maximum number of plates set out in subsections (b) or (d) of this section, by submitting proof of sales that justifies additional allocation.

   1. (1) The dealer may receive the following additional plates:

      1. (A) Wholesale dealers - 1;
      2. (B) Dealers selling fewer than 50 vehicles - 1;
      3. (C) Dealers selling 50 to 99 vehicles - 2;
      4. (D) Dealers selling 100 to 200 vehicles - 5; or
      5. (E) Dealers selling more than 200 vehicles may receive any number of dealer plates at the dealer's discretion.
   2. (2) For purposes of this subsection and subsection (f) of this section, proof of sales may consist of a copy of the most recently filed Vehicle Inventory Tax Declaration or monthly statements duly filed with the proper taxing authority in the county of the dealership's location. Each copy must be stamped received by the tax authority. Any franchised dealer's renewal license application that indicates sales of more than 200 units is considered to be proof of sales of more than 200 units and no additional proof is required.

6. (f) The director may waive the dealer plate issuance restrictions in accordance with this subsection if the waiver is essential for the continuation of the business. The director will base the determination of the number of dealer plates the dealer will receive on the dealer's past sales, inventory, and any other factors that the director determines pertinent.

   1. (1) A request for a waiver must be in writing and specifically state why the additional plates are necessary for the continuation of the applicant's business.
   2. (2) A request for a waiver must be accompanied by proof of the dealer's sales for the previous year if applicable.
   3. (3) A wholesale dealer may not apply for waiver of dealer plate issuance restrictions.
   4. (4) A waiver granted under this subsection for a specific number of plates is valid for four years.

Source Note:The provisions of this §215.139 adopted to be effective February 11, 2010, 35 TexReg 883.