In Texas, it is not illegal to have a license plate bracket or surround. But as of September 1, 2003, it IS illegal to have one that covers up the design that tells what state it is from (including the name ”Texas”) and/or obscure the identifying letters and numbers. According to the story aired on the local news, having one that is even “borderline”, where the surround just touches the letters and numbers, is enough for the state troopers or local police to pull you over for probable cause and write a ticket which can subject you to a $200 fine.
I took the surround off my rear license plate (which had the dealer’s name, etcetera that my dealer had installed when I bought the car a few years ago) since it was covering “Texas” and touched the edge of the numbers and letters. I checked with the dealer today to see if they had a replacement that complies with the new law, and they said they had to remove all of them and had no replacements on order. It’s tough to design one which complies with the letter of the law and still has enough room to display legible names and slogans.
Urban Legend that all license surrounds are banned in Texas is debunked (license surrounds per se not illegal -- just the wrong kind):
http://www.snopes.com/inboxer/pending/texasplate.asp
TV news story highlights the situation:
http://abclocal.go.com/ktrk/news/909...al_plates.html