AUSTIN (KXAN) — Talks and industry concerns about a new law eliminating paper license plates will “undoubtedly” continue next year, the head of the Texas Department of Motor Vehicles Board of Governors said Thursday.

“I know that this conversation will undoubtedly continue in the next session of the legislature,” said TxDMV Board Chairman Charles Bacarisse. “But today we make rules.”

TxDMV on Thursday acknowledged industry concerns about House Bill 718, foreshadowing a potential fight at the Capitol over the replacement of temporary tags with metal tags last year due to widespread fraud that has spread to every state except Texas, according to law enforcement. A. Year-long KXAN investigation.

‘This is the law’

Two weeks ago, the Texas Automobile Dealers Association (TADA) – which represents more than 1,400 franchised auto dealers in the state – He asked the Texas House Transportation Committee to reexamine the law, citing, among other things, concerns that metal tag fraud would become “ubiquitous.”

TADA did not respond when asked if it planned to repeal Bill 718 during the upcoming legislative session, but indicated it was doing so in 2021 and 2023, suggesting it would continue to be involved in ongoing discussions.

“We should also note that the Legislature delayed the effective date of HB 718 until July 1, 2025, giving interested parties another session to address remaining concerns,” TADA spokesperson Jennifer Stevens said.

TADA and the Texas Independent Automobile Dealers Association (TIADA) told the board Thursday they have concerns about some aspects of the new law.

“I know some of us want it, some of us don’t, but we’re here,” said Earl Cooke, TIADA director of compliance and business development. “I think we did the best we could.”

KXAN asked Bacarisse about TADA’s comment to lawmakers that the crime would become metal tag fraud once the new law goes into effect.

“I think the legislature, like us, is always willing to hear from citizens, interest groups and interested parties,” Bacarisse said. “But our focus at this point is entirely on creating rules that will enforce this law.”

KXAN investigative reporter Matt Grant asked, “Should there be any doubt about whether HB 718 will go into effect July 1 of next year?” he asked.

“No, that’s the law,” Bacarisse said. “We will make this law ready to be implemented. “It will definitely be implemented on July 1.”

Rules change as deadline approaches

At its meeting on Thursday, the board unanimously adopted a set of rules that will serve as a road map for implementing the law. Bacarisse warned some board members that they opposed parts of the law; He warned that if not adopted now, TxDMV would be “incompatible” with the December deadline.

Among the concerned board members: Stacey Gillman, a Houston auto dealer for more than 20 years, and Darren Schlosser of the Houston Police Department.

“I think it would be easier for a fraudster to create a temporary tag to put on the back of a car (by law enforcement) than a hard plate,” said TxDMV Board Member Darren Schlosser, who worried the metal plates would burn. stir.

“My personal opinion,” he said, “is that temporary tags should be placed on a vehicle before full registration, all financing avenues, registration, dealership process should be completed before the vehicle is issued a hard plate.”

After some back and forth, a rules pack It was approved unanimously with some language adjustments. Laura Moriaty, general counsel, said the rules ensure dealers have enough metal license plates to operate efficiently, a license plate database can help TxDMV and law enforcement keep tabs and deter theft and fraud.

One takeaway was that car dealers should be encouraged to immediately notify law enforcement when license plates are lost or stolen. Cooke asked the board at one point: “There seems to be confusion even in this room: Is it mandatory or is it not?”

“I agree that it is in our interest as a dealer to report these plates as missing,” said TxDMV Board Member Mark Jones. “Because it’s not feasible, I don’t think it should be there.”

TxDMV spokesman Adam Shaivitz explained that an “incentive” action rule would not be enforced by compliance staff, saying it was more of a “best practice.”

Bacarisse said it’s all part of “the sausage that’s being made.”

‘Where were you?’

Despite industry concerns, law enforcement officials have said this change can’t happen soon enough because criminals continue to use paper tags to hide in plain sight. Lt. John Gonzalez of the Harris County Sheriff’s Office reminded the board that fake temporary tags are used by criminals “to mask or conceal their vehicles before, during, or after the crime is committed.”

He said the problem was only “marginally” reduced.

At a Texas House Transportation Committee hearing two weeks ago, Sgt. Jose Escribano, Travis County Marshal’s Office Pct. 3 said TADA’s concerns about metal tag fraud came out of the blue months before HB 718 went into effect.

“So where were you a year and a half ago?” Escribano asked. “You have a bill that was just passed, and now you’re going to go ahead and suggest that we keep paper tags because of something you just discovered? This is not new. We could have had this conversation a long time ago.

At the House hearing, committee chairman Rep. Terry Canales, D-Edinburg, gave Escribano and TADA a “homework” assignment to meet, discuss concerns and come up with solutions. Escribano wrote a letter to Karen Phillips, the association’s general counsel and executive vice president, on Oct. 11, according to an email shared with KXAN.

“I would like to see if you are available to discuss your concerns with HB 718, per Chairman Terry Canales’ (‘) suggestion at yesterday’s transportation committee hearing,” Escribano wrote, copying Canales to the email.

Thirteen days later, he said, he still hasn’t received a response.

On Wednesday, KXAN asked a TADA spokesperson for a timeframe on when that meeting would take place. We did not get an answer.