Regular Session
Government Affairs & Regulatory Compliance Analysis
SB1809 amends the Texas Penal Code to specifically criminalize "gift card draining" and packaging tampering, establishing felony penalties based on the quantity of cards involved rather than dollar value. While this statute targets fraudsters, it necessitates that retailers and issuers overhaul Loss Prevention (LP) workflows to treat tampered inventory as felony evidence rather than simple shrinkage.
Sen. Peter Flores·Senate Bill·Regular Session
District Attorneys • Texas Law Enforcement Agencies (Police/Sheriff)
This legislation has regulatory implications for the following Texas businesses and organizations:
Notable regulatory updates (effective 2025-09-01). Consider how these changes may affect your operations.
Affected business types:
Affected business types:
lowMinimal cost impact anticipated.
JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.
JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
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.
Schedule a ConsultationInformation 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.
This bill's path through the Texas Legislature
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Common questions about SB1809
SB1809 amends the Texas Penal Code to specifically criminalize "gift card draining" and packaging tampering, establishing felony penalties based on the quantity of cards involved rather than dollar value. While this statute targets fraudsters, it necessitates that retailers and issuers overhaul Loss Prevention (LP) workflows to treat tampered inventory as felony evidence rather than simple shrinkage.
SB1809 was authored by Texas Senator Peter Flores during the Regular Session.
SB1809 was signed into law by Governor Greg Abbott on May 13, 2025.
SB1809 is enforced by District Attorneys and Texas Law Enforcement Agencies (Police/Sheriff).
The regulatory priority for SB1809 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of SB1809 is estimated as "low". This may vary based on industry and implementation requirements.
SB1809 addresses topics including business & commerce, business & commerce--general, crimes, crimes--against property and financial.
Key dates for SB1809: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.
SB1809 establishes the following penalties: criminal penalty of State Jail Felony for Fraudulent possession/use/tampering involving fewer than 5 unactivated gift cards, counterfeit cards, or digital imprints.; criminal penalty of 3rd Degree Felony for Fraudulent possession/use/tampering involving 5 to 9 items.; criminal penalty of 2nd Degree Felony for Fraudulent possession/use/tampering involving 10 to 49 items.. Consult with legal counsel for specific applicability to your situation.
SB1809 primarily affects Texas businesses and commercial enterprises, property owners and real estate professionals. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.
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.
