AUSTIN (KXAN) -- More than a year after Texas lawmakers passed a bill phasing out paper license plates -- amid widespread and rampant nationwide fraud -- a trade association representing more than 1,200 franchised car dealerships is raising new concerns to lawmakers. Now, some law enforcement fear industry groups are trying to chip away at the law before it even takes effect. "I would encourage you to look at these issues as to whether we've gone forward and not backwards," Texas Automobile Dealers Association Executive Vice President Karen Phillips said at a House Transportation Committee hearing on Thursday. The TADA is urging lawmakers to take another "look at" House Bill 718 -- which unanimously passed in 2023 and is set to take effect July 1, 2025 -- that will replace temporary paper tags with metal ones. Phillips' objection: metal tags can also be counterfeited. "Of course, going to a metal tag, our concern is that we're just switching from a fraudulent temp tag to a fraudulent metal tag," she said. Sgt. Jose Escribano testifies at House Transportation Committee (KXAN Photo/Matt Grant) Phillips told lawmakers that "with the cancelation of temporary tags," fraudulent metal ones will become "ubiquitous." Rep. Terry Canales, D-Edinburg, the committee chair, called her remarks "spot on." "We're always trying to keep up with the criminals," said Canales. "They always find a better way. And, so, I don't know that a metal tag is any better." Explore 'Risky Rides:' KXAN investigates widespread Texas paper tag fraud 'Where were you?' Sgt. Escribano, with the Travis County Constable's Office Pct. 3, also testified at the hearing and left feeling "nervous." He said TADA's concerns are new to him. "Well, where were you a year-and-a-half ago?" he asked. Canales asked Escribano and Phillips to meet and find a solution to the counterfeiting concern that can be brought back to the committee. Escribano has investigated paper tag fraud across the state for years. He is considered a leading expert and said metal tag fraud isn't new, but is easier to detect than paper plates. That's because paper tags can be registered to anyone at any address, turning getaway vehicles into "ghost cars." Texas House Transportation Committee heard testimony about HB 718 (KXAN Photo/Matt Grant) "A paper tag is a very, very, different animal altogether," Escribano said. "It's a piece of paper. A metal tag, you have to go a little bit further to get that metal tag, and it's pretty easy to detect. We just simply run it." The bogus tags have been used in crimes ranging from human smuggling to armed robberies, according to the Texas Department of Public Safety. Phillips said she had "concerns" over whether the new law will solve Texas' tag fraud epidemic. She declined KXAN's request for an interview after the hearing, despite telling lawmakers she was "very concerned that we have not increased the awareness of the public." "You have a bill that just passed, and now, you're going to go up and propose that we keep paper tags because of something that you just discovered?," Escribano asked. "This is not recent. We could have had this conversation a long time ago." KXAN asked if he felt this was a "Hail Mary" attempt to try to undo the law. "It appears that way, yes, absolutely," said Escribano. "It looks like a 'Hail Mary' to me because why would you bring that up now and not back then? That's concerning to me." TxDMV finalizing rule The Texas Department of Motor Vehicles is finishing up a final rule to implement the law. It will be presented to the board this month, TxDMV Deputy Executive Director Roland Luna Sr. said. The TxDMV is currently: Working with a third-party vendor to distribute metal plates to the 22,000 dealers in the state. Leveraging technology with a new inventory management system that will allow car dealers to receive, track and know what's in their inventory. It will also allow the TxDMV to make sure dealers are compliant. Working with DPS to make sure the new plates are secure with hidden "indicators" known to law enforcement to prevent counterfeiting. Putting together online training seminars. The agency is working with dealers to ensure the transition to metal plates is "a seamless process" that is not "an impediment to business and commerce in Texas," Luna said. As part of the 2024-2025 budget, the legislature allocated $35 million to the TxDMV to implement and enforce HB 718.