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Signed Into Law
Signed June 20, 2025Effective 2025-06-20
HB1851

Regular Session

Relating to the disposition of certain surplus motor vehicles and other law enforcement equipment by the Texas Facilities Commission to certain school districts.

Government Affairs & Regulatory Compliance Analysis

HB1851: Government Affairs Overview

HB1851 fundamentally alters fleet procurement for school districts in economically disadvantaged areas by authorizing the direct transfer of surplus Department of Public Safety (DPS) vehicles and equipment at nominal cost. This legislation bypasses standard auction processes but imposes strict operational covenants, limiting asset usage exclusively to law enforcement duties and prohibiting resale for two years.

Rep. Eddie Morales·House Bill·Regular Session

Moderate
Low Cost
Effective:2025-06-20
Business Impact

Who HB1851 Affects

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

Regulatory Priority: moderate

Notable regulatory updates (effective 2025-06-20). Consider how these changes may affect your operations.

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Education

Affected business types:

  • School districts
  • Charter schools
  • Private schools
  • Education service providers
View all education legislation

Key Operational Considerations

  • 1Vendor MSAs: Review existing fleet procurement contracts. Acquiring surplus units may impact minimum volume commitments with current vehicle suppliers.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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HB1851
Relating to the disposition of certain surplus motor vehicles and other law enforcement equipment by the Texas Facilities Commission to certain school...
Moderate Urgency
Passed with Opposition
House Vote105 - 11
YEA
91% in favor116 voting
Senate Vote27 - 4
YEA
87% in favor31 voting
15
Total Opposition Votes
Cost Impact
Low
Effective
2025-06-20
Enforcing Agencies
TFC
Primary Author: Rep. Eddie Morales
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: June 20, 2025 (Contingent on certification of supermajority vote).
  • Compliance Deadline: Immediate upon asset receipt. Districts must have asset tracking protocols in place *before* taking possession to ensure restricted assets are not commingled with general administrative fleets.
  • Agency Rulemaking: The Texas Facilities Commission (TFC) must establish specific eligibility criteria and application procedures. Expect a "regulatory gray zone" between June 20 and the issuance of TFC interim guidance regarding the definition of "economically disadvantaged."

Immediate Action Plan

  • Draft the Narrative: Immediately prepare a justification statement linking district security needs to the prevention of transnational crime (e.g., drug trafficking, human trafficking prevention).
  • Segregate the Fleet: Create a specific asset class in your inventory system for "HB1851 Restricted Assets" to prevent accidental unauthorized use or premature sale.
  • Secure Funding: Allocate discretionary funds for the transfer fees and immediate upfitting costs now, as these cannot be financed through standard new-vehicle leasing structures.
  • Monitor TFC: Assign a compliance officer to watch the Texas Register and TFC website daily starting June 15 for the release of the application portal.

Operational Changes Required

Contracts

  • TFC Transfer Agreements: Legal counsel must review the transfer document as a binding contract, not a simple receipt. Ensure the "consideration" (price) is fixed (approx. $1,000) and does not include open-ended liability clauses.
  • Inter-local MOUs: If the district shares jurisdiction with municipal police or county sheriffs, update Memoranda of Understanding (MOUs) to explicitly state that these assets are district-owned and restricted to district law enforcement use.
  • Vendor MSAs: Review existing fleet procurement contracts. Acquiring surplus units may impact minimum volume commitments with current vehicle suppliers.

Hiring/Training

  • Authorized Operators: Strict internal controls are required to ensure only "peace officers, school resource officers, or security personnel" operate these vehicles. Administrative staff and faculty are statutorily prohibited from driving these assets.
  • Safety Certification: These are "as-is" surplus units with high idle times. Mandatory mechanical safety inspections and driver familiarization training are required before deployment.

Reporting & Record-Keeping

  • Justification Narrative: Applicants must draft a "Nexus Statement" demonstrating how the transfer aids in "securing the international border and combatting transnational crime." Data linking local incidents to broader criminal networks must be prepared and retained.
  • Asset Locking: Inventory management systems must hard-lock these assets to prevent sale or disposal before the second anniversary of the receipt date.
  • Usage Logs: Maintain specific trip logs or telematics data to prove exclusive law enforcement usage in the event of a TFC audit.

Fees & Costs

  • Transfer Fee: Budget approximately $1,000 per vehicle (payable to TFC).
  • Upfitting & Re-branding: Budget $2,000–$5,000 per vehicle immediately for "de-marking" DPS decals and installing district branding/equipment.
  • Maintenance Reserve: These assets are surplus for a reason. Increase maintenance reserves for these specific units compared to new fleet acquisitions.

Strategic Ambiguities & Considerations

  • "Economically Disadvantaged" Definition: The statute does not explicitly define this standard. TFC may adopt TEA Chapter 49 definitions, Title I status, or Census tract data. Districts on the margin should prepare eligibility arguments under multiple definitions.
  • "Transnational Crime" Nexus: The requirement to combat transnational crime is broad. It is unclear if TFC will require a direct border connection or if drug interdiction in interior districts suffices.
  • "Other Consideration": The law allows transfer for "price or other consideration." TFC may require non-monetary consideration, such as data sharing or reporting on crime statistics, in lieu of or in addition to the cash fee.

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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
Jan 15, 2025
Passed House
Apr 25, 2025
Passed Senate
May 25, 2025
Signed
Jun 20, 2025
Effective
Jun 20, 2025
TopicsEducationEducation--school DistrictsLaw EnforcementPurchasingPurchasing--stateFacilities Commission, TexasSurplus PropertyPeace Officers
03

House Authors

Rep. Eddie MoralesDemocrat · Primary Author
Joint Authors
Coauthors (12)

Senate Sponsors

Sen. Bryan HughesRepublican · 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. Eddie Morales

View all bills by Rep. Eddie Morales

Related by Topic

View more Education legislation
Quick Reference

Frequently Asked Questions

Common questions about HB1851

Q

What does Texas HB1851 do?

HB1851 fundamentally alters fleet procurement for school districts in economically disadvantaged areas by authorizing the direct transfer of surplus Department of Public Safety (DPS) vehicles and equipment at nominal cost. This legislation bypasses standard auction processes but imposes strict operational covenants, limiting asset usage exclusively to law enforcement duties and prohibiting resale for two years.

Q

Who authored HB1851?

HB1851 was authored by Texas Representative Eddie Morales during the Regular Session.

Q

When was HB1851 signed into law?

HB1851 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB1851?

HB1851 is enforced by Texas Facilities Commission (TFC).

Q

How significant are the changes in HB1851?

The regulatory priority for HB1851 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB1851?

The cost impact of HB1851 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB1851 address?

HB1851 addresses topics including education, education--school districts, law enforcement, purchasing and purchasing--state.

Q

What are the key dates for HB1851?

Key dates for HB1851: Effective date is 2025-06-20. Consult with legal counsel regarding applicability.

Q

What are the penalties under HB1851?

HB1851 establishes the following penalties: administrative/contractual prohibition penalty of Prohibition on sale for Selling transferred property before the second anniversary of the receipt date.; administrative/statutory restriction penalty of Usage restriction for Using property for purposes other than law enforcement duties by peace officers, school resource officers, or security personnel.. Consult with legal counsel for specific applicability to your situation.

Q

Which Texas businesses are affected by HB1851?

HB1851 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