(a) A vehicle may be parked for an unlimited period in a parking space or area that is designated specifically for persons with physical disabilities if:
(1) the vehicle:
(A) displays special license plates issued under § 504.202(b-1); and
(B) is being operated by or for the transportation of the person to whom the plates were issued; or
(2) the vehicle displays license plates issued by another state of the United States that indicate on the face of the license plates that the owner or operator of the vehicle is a disabled veteran of the United States armed forces.
(a-1) A vehicle described by Subsection (a) may be parked for an unlimited period in a parking space or area that is designated specifically for persons with physical disabilities on the property of an institution of higher education, as defined by § 61.003, Education Code, regardless of whether a permit is generally required for the use of the space or area. An institution of higher education may require a vehicle described by Subsection (a) to display a parking permit issued by the institution specifically for the purpose of implementing this subsection, but may not charge a fee for the permit. This subsection does not entitle a person to park a vehicle described by Subsection (a) in a parking space or area that has not been designated specifically for persons with physical disabilities on the property of the institution if the vehicle has not been granted or assigned a parking permit required by the institution.

(a-2) Subsection (a-1) does not apply to a parking space or area located in:
(1) a controlled access parking facility if at least 50 percent of the number of parking spaces or areas designated specifically for persons with physical disabilities on the property of the institution of higher education are located outside a controlled access parking facility;
(2) an area temporarily designated for special event parking; or
(3) an area where parking is temporarily prohibited for health or safety concerns.
(b) A vehicle on which license plates described by Subsection (a)(2) or issued under § 504.202, 504.308, 504.310, 504.315, 504.316, or 504.319 are displayed is exempt from the payment of a parking fee collected through a parking meter charged by a governmental authority other than a branch of the federal government, when being operated by or for the transportation of:
(1) the person who registered the vehicle under § 504.202(a), 504.308, 504.310, 504.315, 504.316, or 504.319;
(2) a person described in § 504.202(b) if the vehicle is registered under that subsection; or
(3) the owner or operator of a vehicle displaying license plates described by Subsection (a)(2).
(c) This section does not permit a vehicle to be parked at a time when or a place where parking is prohibited.
(d) A governmental unit may provide by ordinance or order that the exemption provided by Subsection (b) also applies to payment of a fee or penalty imposed by the governmental unit for parking in a parking garage or lot or in a space with a limitation on the length of time for parking.