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Signed Into Law
Signed May 29, 2025Effective 2025-05-29
HB1261

Regular Session

Relating to the disposition of abandoned or unclaimed property seized by a peace officer.

Government Affairs & Regulatory Compliance Analysis

HB1261: Government Affairs Overview

HB1261 fundamentally alters the due process requirements for seized and abandoned property by authorizing law enforcement agencies to utilize agency websites and social media for public notice, removing the absolute mandate for newspaper publication and certified mail. This digital transformation requires fleet operators and businesses to immediately shift asset recovery monitoring from physical mail to digital channels, while municipal vendors must overhaul disposition contracts to reflect new digital workflows.

Rep. Charles Cunningham·House Bill·Regular Session

Moderate
Low Cost
Effective:2025-05-29
Enforcing Agencies

County Purchasing Agents • County Sheriffs • Municipal Law Enforcement Agencies

Business Impact

Who HB1261 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: moderate

Notable regulatory updates (effective 2025-05-29). Consider how these changes may affect your operations.

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Real Estate

Affected business types:

  • Property developers
  • Commercial landlords
  • Property managers
  • Real estate investors
View all real estate legislation

Estimated Cost Impact

lowMinimal cost impact anticipated.

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HB1261
Relating to the disposition of abandoned or unclaimed property seized by a peace officer.
Moderate Urgency
Passed with Opposition
House Vote127 - 4
YEA
97% in favor131 voting
Senate Vote31 - 0
YEA
100% in favor31 voting
4
Total Opposition Votes
Cost Impact
Low
Effective
2025-05-29
Enforcing Agencies
County Purchasing AgentsCounty SheriffsMunicipal Law Enforcement Agencies
Primary Author: Rep. Charles Cunningham
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: May 29, 2025 (Immediate effect due to supermajority vote).
  • Compliance Deadline: May 29, 2025. Protocols must be active immediately for any property seized on or after this date.
  • Agency Rulemaking: No state-level rulemaking is required. Local Law Enforcement Agencies (LEAs) and County Commissioners Courts will establish internal policies immediately to define authorized social media channels.

Immediate Action Plan

  • 1. Audit Pending Inventory: Immediately tag all inventory based on seizure date. Ensure no property seized *before* May 29 is processed using the new digital-only rules.
  • 2. Update Vendor Contracts: Remove newspaper advertising fee schedules from future municipal contracts and insert digital processing fees.
  • 3. Map Digital Jurisdictions: Fleet owners must compile a list of "Official" URLs and Social Media handles for the jurisdictions where they operate to facilitate weekly searches.
  • 4. Establish Archiving Protocols: IT departments must implement tools to automatically screenshot and archive "Legal Notice" webpages to serve as permanent evidence of compliance.

Operational Changes Required

Contracts

  • Auctioneer & Towing MSAs: Vendors managing disposition for municipalities must renegotiate Master Service Agreements. Clauses authorizing "pass-through costs" for newspaper advertising are obsolete for new seizures. These must be replaced with "digital administration" or "web-posting" fee structures.
  • IT & Web Hosting: Municipalities and their IT vendors require updated Service Level Agreements (SLAs). Websites hosting legal notices must guarantee high availability (99.9% uptime); a server outage during the 14-day notice period prior to sale could legally invalidate an auction.

Hiring/Training

  • Asset Recovery Teams: Corporate compliance staff and fleet managers must be retrained to stop relying on certified mail. Staff must proactively monitor specific county Sheriff and Police Department social media feeds and websites for seized asset notices.
  • Agency Staff: Personnel responsible for property management must be trained on "Digital Evidence Preservation." They must transition from filing Publisher's Affidavits to generating time-stamped digital logs.

Reporting & Record-Keeping

  • Digital Evidence Logs: For every notice posted online, the agency or vendor must retain a time-stamped screenshot or server log. This replaces the newspaper clipping as the primary proof of notice in court.
  • Inventory Bifurcation: You must maintain two distinct inventory tracks based on the Date of Seizure:
  • 1. Pre-May 29, 2025: Must follow Former Law (Newspaper/Mail).
  • 2. Post-May 29, 2025: Governed by HB1261 (Digital Notice).

Fees & Costs

  • Advertising Budget: Line items for "Legal Notices/Newspaper Ads" will decrease significantly.
  • Administrative Costs: Expect a minor increase in internal administrative time required to draft, post, and archive digital notices compliant with the 90-day holding period.

Strategic Ambiguities & Considerations

  • "Social Networking Website": The statute does not define which platforms constitute valid notice. A post on a Sheriff’s rarely used Twitter account may technically comply but fail actual notice standards. Businesses should anticipate local policies defining "Official Channels" (e.g., Facebook vs. TikTok).
  • "One-Time" vs. Duration: The law permits a "one-time" digital notice, but the property must be held for 90 days. It is unclear if the notice must remain visible/pinned for the duration. Best practice dictates the notice remain searchable to defend against due process claims.
  • Accessibility (ADA): Digital notices must comply with ADA standards. If an agency's website is not accessible to screen readers, the legal notice may be challengeable.

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JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

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Legislative Timeline

This bill's path through the Texas Legislature

Filed
Nov 12, 2024
Passed House
Apr 25, 2025
Passed Senate
May 16, 2025
Signed
May 29, 2025
Effective
May 29, 2025
TopicsCriminal ProcedureCriminal Procedure--generalProperty InterestsProperty Interests--generalElectronic Information SystemsProperty Interests--personal PropertyPeace OfficersPublic NoticeUnclaimed Property
03

House Authors

Rep. Charles CunninghamRepublican · Primary Author

Senate Sponsors

Sen. Peter FloresRepublican · Primary Sponsor
Cosponsors (1)

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

Explore more bills from this author and on related topics

More from Rep. Charles Cunningham

View all bills by Rep. Charles Cunningham

Related by Topic

View more Criminal Procedure legislation
Quick Reference

Frequently Asked Questions

Common questions about HB1261

Q

What does Texas HB1261 do?

HB1261 fundamentally alters the due process requirements for seized and abandoned property by authorizing law enforcement agencies to utilize agency websites and social media for public notice, removing the absolute mandate for newspaper publication and certified mail. This digital transformation requires fleet operators and businesses to immediately shift asset recovery monitoring from physical mail to digital channels, while municipal vendors must overhaul disposition contracts to reflect new digital workflows.

Q

Who authored HB1261?

HB1261 was authored by Texas Representative Charles Cunningham during the Regular Session.

Q

When was HB1261 signed into law?

HB1261 was signed into law by Governor Greg Abbott on May 29, 2025.

Q

Which agencies enforce HB1261?

HB1261 is enforced by County Purchasing Agents, County Sheriffs and Municipal Law Enforcement Agencies.

Q

How significant are the changes in HB1261?

The regulatory priority for HB1261 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB1261?

The cost impact of HB1261 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB1261 address?

HB1261 addresses topics including criminal procedure, criminal procedure--general, property interests, property interests--general and electronic information systems.

Q

What are the key dates for HB1261?

Key dates for HB1261: Effective date is 2025-05-29. Consult with legal counsel regarding applicability.

Q

Which Texas businesses are affected by HB1261?

HB1261 primarily affects property owners and real estate professionals. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026