... but does anyone know if the dealer can program to shut off TPMS? I've had a sensor to go bad. ...
I think the short answer to your question is NO.
The Motor Vehicle Safety Act's "make inoperative" provision (49 USC 30122(b)) prohibits manufacturers, distributors, dealers, or motor vehicle repair businesses from knowingly making inoperative, in whole or in part, any part of a device or element of design installed on or in a motor vehicle in compliance with an applicable motor vehicle safety standard.
If curious, see this 2011 letter from the NHTSB:
https://lesschwab.com/content_files/TPMS_letter.pdf
Here are two interesting responses found in the letter to questions from the Tire Industry Association:
[TIRE INDUSTRY ASSOC.] "Scenario #1: If a motorist is made aware of an inoperative TPMS sensor and declines to purchase a new one, does the service provider knowingly make the system inoperative and violate 49 USC 30122(b) by removing the dead or damaged sensor and replacing it with a standard snap-in rubber valve stem?"
[NHTSB] "Our response: For the purpose of this response, we assume that you are referring solely to TPMS sensors that are integrated with the valve stem. Moreover, we assume that the sensor was inoperative before a customer brought the vehicle to the repair business. An illuminated malfunction indicator lamp could be an indication of an inoperative sensor. We also assume that you are describing a part within the TPMS system that cannot be repaired. In that event, a motor vehicle repair business would not be violating 49 USC 30122(b) by removing an inoperative or damaged TPMS sensor and replacing it with a standard snap-in rubber valve stem. The removal of a malfunctioning TPMS sensor that is integrated with a valve stem would not violate the "make inoperative" provision because the element of the system was already inoperative. However, a motor vehicle repair business that goes on to make any other element of the TPMS system inoperative, for example, by disabling the malfunction indicator lamp, would violate the "make inoperative" provision."
[TIRE INDUSTRY ASSOC.] "Scenario #2: If a motorist purchases a set of aftermarket winter tires and wheels and declines to purchase new TPMS sensors, does the service provider violate 49 USC 30122(b) because they would be installing assemblies that knowingly make the system inoperative?"
[NHTSB] "Our response: In this scenario, we assume that the vehicle has a functioning TPMS system at the time he or she purchases aftermarket tires and wheels. In that case, a service provider would violate the "make inoperative" prohibition of 49 USC 30122(b) by installing new tires and wheels that do not have a functioning TPMS system. To avoid a "make inoperative" violation, the service provider would need to decline to install the new tires and rims, use the TPMS sensor from the original wheels (if they are compatible), or convince the motorist to purchase new TPMS sensors and ensure that the sensors are properly integrated with the vehicle's TPMS system."