(a) In this section "fraudulently obtained temporary tags from the temporary tag database" means a dealer or converter account user misusing the temporary tag database authorized under Transportation Code §503.0626 or §503.0631 to obtain:      
        (1) an excessive number of temporary tags relative to dealer sales;       
        (2) temporary tags for a vehicle or vehicles not in the dealer's or converter's inventory (a vehicle is presumed not to be in the dealer's or converter's inventory if the vehicle is not listed in the relevant monthly Vehicle Inventory Tax Statement); or       
        (3) access to the temporary tag database for a fictitious user or person using a false identity.       
      (b) The department shall deny a dealer or converter access to the temporary tag database effective on the date the department sends notice electronically and by certified mail to the dealer or converter that the department has determined, directly or through an account user, the dealer or converter has fraudulently obtained temporary tags from the temporary tag database. A dealer or converter may seek a negotiated resolution with the department by demonstrating corrective actions taken or that the department's determination was incorrect.     
      (c) Notice shall be sent to the dealer's or converter's last known email and mailing address in the department's records.     
      (d) A dealer or converter may request a hearing on the denial as provided by Subchapter O, Chapter 2301, Occupations Code. The request must be submitted in writing and request a hearing under this section. The department must receive a written request for a hearing within 26 days of the date of the notice denying access to the database. The request for a hearing does not stay the denial of access under subsection (b) of this section. A dealer may continue to seek a negotiated resolution with the department after a request for hearing has been submitted under this subsection by demonstrating corrective actions taken or that the department's determination was incorrect.     
      (e) The department may also issue a Notice of Department Decision stating administrative violations as provided in §215.500 concurrently with the notice of denial of access under this section. A Notice of Department Decision may include notice of any violation, including a violation listed under subsection (a) of this section.     
      (f) A department determination and action denying access to the temporary tag database becomes final if the dealer or converter does not request a hearing or enter into a settlement agreement with the department within 26 days of the date of the notice denying access to a database.     
     Source Note:        The provisions of this §215.505 adopted to be effective January 27, 2022, 47 TexReg 662; amended to be effective July 21, 2022, 47 TexReg 4151