EL PASO, Texas (KTSM) — The Texas Legislature passed House Bill 718 in 2023, banning paper license plates and requiring permanent metal plates at the time of vehicle sale. The law went into effect July 1, 2025, to combat fraud and enhance security.
The new Texas law eliminates temporary paper license plates issued by car dealerships, replacing them with permanent black and white metal plates. This change aims to address concerns about the fraudulent use of paper tags, which have been used to avoid vehicle registration and toll payments. Dealerships are now required to use the webDEALER system to process title and registration applications and issue the new metal plates.
However, in a live interview with KTSM 9 News anchor Andy Morgan, El Paso County Judge Ricardo Samaniego says the law has had unintended consequences for car dealerships in El Paso County.
“What has happened is that the title clerks have gone from working on the county side to being shifted to working for the dealer,” said Judge Samaniego. “They aren’t trained to do that and it’s become an added expense for them.”
Since the implementation of the new rule in July, auto dealers in El Paso County have reported a backlog and increased permit transaction times, leading to customer frustration. The transition has been particularly challenging for smaller dealerships, which may not have the resources to manage the additional workload and expenses.
Judge Samaniego noted that the shift in responsibilities from county title clerks to dealership staff has been difficult, especially for dealers who lack the financial flexibility. This change comes amid ongoing inventory shortages and high vehicle prices due to pandemic-related supply chain issues.
“There’s a lot of pressure on the small dealerships,” said Judge Samaniego.
The introduction of permanent metal plates is expected to enhance security and reduce vehicle-related crimes, but the transition has posed significant challenges for some local dealerships.
All facts in this report were gathered by journalists employed by KTSM. Artificial intelligence tools were used to reformat from a broadcast script into a news article for our website. This report was edited and fact-checked by KTSM staff before being published.
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