The department can cancel a dealer’s general distinguishing number for listed violations, and must cancel it if it was obtained with false or misleading information.
Sec. 503.038. CANCELLATION OF GENERAL DISTINGUISHING NUMBER. (a) The department may cancel a dealer's general distinguishing number if the dealer: (1) falsifies or forges a title document, including an affidavit making application for a certified copy of a title; (2) files a false or forged tax document, including a sales tax affidavit; (3) fails to take assignment of any basic evidence of ownership, including a certificate of title or manufacturer's certificate, for a vehicle the dealer acquires; (4) fails to assign any basic evidence of ownership, including a certificate of title or manufacturer's certificate, for a vehicle the dealer sells; (5) uses or permits the use of a dealer's license plate on a vehicle that the dealer does not own or control or that is not in stock and offered for sale; (6) makes a material misrepresentation in an application or other information filed with the department; (7) fails to maintain the qualifications for a general distinguishing number; (8) fails to provide to the department within 30 days after the date of demand by the department satisfactory and reasonable evidence that the person is regularly and actively engaged in business as a wholesale or retail dealer; (9) has been licensed for at least 12 months and has not assigned at least five vehicles during the previous 12-month period; (10) has failed to demonstrate compliance with Sections 23.12, 23.121, and 23.122, Tax Code; (11) uses or allows the use of the dealer's general distinguishing number or the location for which the general distinguishing number is issued to avoid the requirements of this chapter; or (12) otherwise violates this chapter or a rule adopted under this chapter. (b) The department shall cancel a dealer's general distinguishing number if the dealer obtains the number by submitting false or misleading information. (c) A person whose general distinguishing number is canceled under this chapter shall surrender to a representative of the department each license, license plate, sticker, and receipt issued under this chapter not later than the 10th day after the date the general distinguishing number is canceled. The department shall direct any peace officer or designated department employee to secure and return to the department any plate, sticker, or receipt of a person who does not comply with this subsection. (d) A person whose general distinguishing number is canceled automatically loses any benefits and privileges afforded under Chapter 501 to the person as a dealer. Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.69(i), eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 871, Sec. 4, 11(a), eff. Sept. 1, 1997; Acts 2003, 78th Leg., ch. 1320, Sec. 3, eff. Sept. 1, 2003. Amended by: Acts 2009, 81st Leg., R.S., Ch. 793 (S.B. 1235), Sec. 2, eff. September 1, 2009. Acts 2023, 88th Leg., R.S., Ch. 668 (H.B. 718), Sec. 10, eff. July 1, 2025.