Relating to the prosecution of the offense of theft of service.
ModeratePlan for compliance
Low Cost
Effective:2025-06-20
Enforcing Agencies
Local Law Enforcement (Police/Sheriff) • District Attorneys • County Attorneys
01
Compliance Analysis
Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
Effective Date:June 20, 2025 (Note: While the bill text lists September 1, the bill passed with a supermajority, triggering immediate effect upon signature).
Compliance Deadline:Immediate. To utilize these new notice provisions for current transactions, your data collection practices must be updated today.
Agency Rulemaking:None. This is a statutory amendment to the Penal Code; no regulatory agency (e.g., TDLR) will issue further guidance. Interpretation will fall to local District Attorneys and the courts.
Immediate Action Plan
1.Update Intake Forms: Immediately make "Mobile Phone" and "Email Address" mandatory fields on all rental contracts.
2.Revise SOPs: Update Asset Recovery Standard Operating Procedures to prioritize text/email demands as the first step in the collections process.
3.Audit IT Capabilities: Verify that your messaging platform retains immutable logs of sent messages to serve as evidence for District Attorneys.
4.Notify Counsel: Have outside counsel draft the specific "Consent to Electronic Notice" language for your rental agreements by end of week.
Operational Changes Required
Contracts
Mandatory Updates: You must amend all Master Service Agreements (MSAs) and Rental Contracts immediately.
Data Capture: The statute requires the notice be sent to the address/number "shown on the rental agreement." If the email/mobile number is not on the signed document, you cannot use this expedited process.
Consent Clause: Insert a "Consent to Electronic Notice" provision. Explicitly state that the customer agrees to receive legal demands regarding the return of property via the provided email and mobile number.
Hiring/Training
Front-Line Staff: Intake personnel must be trained to verify mobile numbers and email addresses at the point of sale. A fake number renders this law useless.
Collections Teams: Staff must be retrained on the new "Two-Day Presumption." Under the new law, receipt of notice is legally presumed two days after sending the text/email, replacing the longer wait times associated with certified mail return receipts.
Reporting & Record-Keeping
Evidence Logs: Your CRM or ERP system must be capable of exporting a "Proof of Sending" for texts and emails. This must include:
1. Timestamp.
2. Destination number/address.
3. Full content of the message (specifically the demand for return).
Bounce Management: If a text or email bounces (undeliverable), the legal presumption of receipt is jeopardized. You must maintain a protocol to revert to Certified Mail immediately upon receiving a bounce notification.
Fees & Costs
Cost Savings: This law reduces operational costs by eliminating the requirement for Certified Mail postage for every initial demand.
No New Fees: There are no new state fees associated with this change.
Strategic Ambiguities & Considerations
Definition of "Text Message": The statute does not define "text message." It is unclear if Over-the-Top (OTT) messaging apps (WhatsApp, Signal, iMessage) qualify. Guidance: Utilize standard SMS/MMS protocols exclusively until case law clarifies. Avoid encrypted third-party apps for legal notice.
Scope of "Theft of Service": This electronic notice provision applies specifically to Subsection (a)(4) (failure to return property held under a rental agreement). It does not explicitly cover Subsection (c) (payment by check/sight order). Do not use text messages to demand payment for bad checks; continue using standard mailing procedures for those offenses.
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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.
Currently, notices demanding payment under the offense of theft of service must be sent through physical mail by the person whose services were rendered. The bill author has informed the committee that this limitation can place a burden on victims of the offense, given that communication through electronic methods such as email and text message is both more commonplace and efficient. H.B. 3463 seeks to make it easier for victims of theft of service to seek help and also to allow local prosecutors to more efficiently process and analyze complaints.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 3463 amends the Penal Code to include email, text message, and any other form of written communication among the methods by which the requisite notice demanding payment may be sent to an actor for purposes of conduct constituting theft of service in which the actor intentionally or knowingly secures the performance of the service by agreeing to provide compensation and failing to make full payment after the service was rendered and after receiving such notice. Accordingly, the bill provides for notice demanding payment to be sent by such methods using the applicable contact information shown on the rental agreement or service agreement, the records of the person whose service was secured, or the check or similar sight order securing performance of service or the related bank or drawee records, as applicable.
H.B. 3463 applies only to an offense committed on or after the bill's effective date. An offense committed before the bill's effective date is governed by the law in effect on the date the offense was committed, and the former law is continued in effect for that purpose. For these purposes, an offense was committed before the bill's effective date if any element of the offense occurred before that date.
Honorable John T. Smithee, Chair, House Committee on Criminal Jurisprudence
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB3463 by Walle (Relating to the prosecution of the offense of theft of service.), As Introduced
No significant fiscal implication to the State is anticipated.
The bill would provide additional forms of notice demanding payment in cases involving the offense of theft of service.
It is assumed that any impact on state correctional populations or on the demand for state correctional resources would not be significant.
Local Government Impact
It is assumed that any fiscal impact to units of local government associated with enforcement, prosecution, supervision, or confinement would not be significant.
Source Agencies:
212 Office of Court Administration, Texas Judicial Council
LBB Staff:
JMc, MGol, AMr
Related Legislation
Explore more bills from this author and on related topics
HB3463 modernizes the Texas Penal Code to allow businesses to use e-mail and text messages—rather than exclusively certified mail—to satisfy legal notice requirements for Theft of Service prosecutions involving rental property. This legislation significantly accelerates the timeline for establishing criminal intent, allowing rental and leasing companies to involve law enforcement faster when assets are not returned. Implementation Timeline Effective Date: June 20, 2025 (Note: While the bill text lists September 1, the bill passed with a supermajority, triggering immediate effect upon signature).
Q
Who authored HB3463?
HB3463 was authored by Texas Representative Armando Walle during the Regular Session.
Q
When was HB3463 signed into law?
HB3463 was signed into law by Governor Greg Abbott on June 20, 2025.
Q
Which agencies enforce HB3463?
HB3463 is enforced by Local Law Enforcement (Police/Sheriff), District Attorneys and County Attorneys.
Q
How urgent is compliance with HB3463?
The compliance urgency for HB3463 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
Q
What is the cost impact of HB3463?
The cost impact of HB3463 is estimated as "low". This may vary based on industry and implementation requirements.
Q
What topics does HB3463 address?
HB3463 addresses topics including consumer protection, crimes, crimes--against property, crimes--miscellaneous and electronic information systems.
Legislative data provided by LegiScanLast updated: November 25, 2025
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