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As far as I know, the plate number does go into circulation after you release interest - How do you think I got mine in the first place? Transferring ownership (or, more precisely, giving it as gift) is different - obviously the plate would still be in use by someone. However, to my knowledge, once I gave it to someone else per DMV's plate transfer procedures, liability belongs to the owner of the "new" vehicle to which the plate is now assigned.

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