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Signed Into Law
Signed June 20, 2025Effective 2025-06-20
HB4202

Regular Session

Relating to proof of identity of a person making an acknowledgment of a written instrument.

Government Affairs & Regulatory Compliance Analysis

HB4202: Government Affairs Overview

HB4202 is effective immediately, mandating strict liability standards for how notaries verify signer identity. The most critical operational change is the bifurcation of acceptable ID: notaries must now accept current foreign passports for residential real estate transactions, but are prohibited from accepting them for commercial transactions or general affidavits.

Rep. Valoree Swanson·House Bill·Regular Session

Moderate
Low Cost
Effective:2025-06-20

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HB4202
Relating to proof of identity of a person making an acknowledgment of a written instrument.
Moderate Urgency
Unanimous Passage
House Vote129 - 0
YEA
100% in favor129 voting
Senate Vote31 - 0
YEA
100% in favor31 voting
Cost Impact
Low
Effective
2025-06-20
Enforcing Agencies
Texas Secretary of State
Primary Author: Rep. Valoree Swanson
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
  • Compliance Deadline: Immediate. (June 20, 2025). There is no grace period; acknowledgments taken today must comply.
  • Agency Rulemaking: The Texas Secretary of State is not explicitly required to promulgate new rules, but may issue updated FAQs. Do not wait for agency guidance to comply.

Immediate Action Plan

  • Issue a "Compliance Alert" to all transaction teams and in-house notaries immediately, attaching the new ID hierarchy.
  • Update Closing Scripts to ask signers specifically if they intend to use a foreign passport; if yes, verify the transaction is strictly residential.
  • Audit Notary Journals in 30 days to ensure staff are recording the specific ID type and not reverting to pre-statute habits.
  • Revise Third-Party Instructions to ensure mobile notaries are not rejecting valid foreign passports for residential deals, which could cause funding delays.

Operational Changes Required

Contracts

  • Vendor SLAs: Update agreements with mobile notary services and Remote Online Notary (RON) providers. They must certify that their software and agents can distinguish between "Residential" and "Non-Residential" transaction types to apply the correct ID logic.
  • Lender Instructions: Mortgage lenders and title companies must revise closing instructions to explicitly permit current foreign passports as valid ID for residential loan packages to prevent closing delays.

Hiring/Training

  • Immediate Retraining: All staff notaries must be retrained on the "Three Category" rule. They can no longer use discretion; they must stick to the statutory list (Credible Witness with ID, US Gov ID, or Foreign Passport *only* for residential).
  • Credible Witness Protocol: Staff must understand that if they do not personally know the credible witness, that witness must present a valid US government ID.

Reporting & Record-Keeping

  • Journal Specificity: Notary logbooks must record the specific ID type. Generic entries like "Passport" are now insufficient; record "Foreign Passport - [Country]" or "US Passport."
  • Justification Notes: If a foreign passport is accepted, the notary journal must explicitly note the document is for a "Residential Real Estate Transaction" to create a defense against future challenges to the acknowledgment's validity.

Fees & Costs

  • No Fee Changes: The statutory fees for notary acts remain unchanged.
  • Operational Costs: Minimal costs anticipated for updating training manuals and internal compliance memos.

Strategic Ambiguities & Considerations

  • Definition of "Residential": The statute does not define "residential real estate transaction." This creates high risk for mixed-use properties, raw land intended for development, or large-scale portfolio sales.
  • *Guidance:* Until the Secretary of State or courts clarify, take a conservative position. Restrict foreign passport usage to clear-cut 1-4 family dwelling transactions. For anything involving zoning changes, commercial riders, or agricultural exemptions, require standard US Government ID.
  • "Current" Requirement: The law specifies a "current" passport.
  • *Guidance:* Do not accept expired documents. Unlike previous emergency orders, there is no "look-back" period for expired IDs under this statute.

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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
Mar 10, 2025
Passed House
May 10, 2025
Passed Senate
May 28, 2025
Signed
Jun 20, 2025
Effective
Jun 20, 2025
TopicsCivil Remedies & LiabilitiesNotariesIdentification Cards
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House Authors

Rep. Valoree SwansonRepublican · Primary Author
Joint Authors

Senate Sponsor

Sen. Judith ZaffiriniDemocrat · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

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Quick Reference

Frequently Asked Questions

Common questions about HB4202

Q

What does Texas HB4202 do?

HB4202 is effective immediately, mandating strict liability standards for how notaries verify signer identity. The most critical operational change is the bifurcation of acceptable ID: notaries must now accept current foreign passports for residential real estate transactions, but are prohibited from accepting them for commercial transactions or general affidavits.

Q

Who authored HB4202?

HB4202 was authored by Texas Representative Valoree Swanson during the Regular Session.

Q

When was HB4202 signed into law?

HB4202 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB4202?

HB4202 is enforced by Texas Secretary of State (Notary Public Unit).

Q

How significant are the changes in HB4202?

The regulatory priority for HB4202 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB4202?

The cost impact of HB4202 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB4202 address?

HB4202 addresses topics including civil remedies & liabilities, notaries and identification cards.

Q

What are the key dates for HB4202?

Key dates for HB4202: Effective date is 2025-06-20. Consult with legal counsel regarding applicability.

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