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Signed Into Law
Signed May 24, 2025Effective 2025-09-01
SB2007

Regular Session

Relating to the voluntary disclosure by an applicant for registration of a motor vehicle of the applicant's military status.

Government Affairs & Regulatory Compliance Analysis

SB2007: Government Affairs Overview

SB 2007 mandates a structural change to Texas Department of Motor Vehicles (TxDMV) data architecture, requiring the collection and release of voluntary military status on vehicle records. This legislation creates downstream liability for lenders regarding Servicemembers Civil Relief Act (SCRA) compliance and necessitates immediate software updates for automotive retailers and title service companies to accommodate new data fields.

Sen. Brent Hagenbuch·Senate Bill·Regular Session

Low
Low Cost
Effective:2025-09-01
Business Impact

Who SB2007 Affects

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

Regulatory Priority: low

Standard regulatory changes (effective 2025-09-01). Review during normal business planning.

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Transportation

Affected business types:

  • Trucking companies
  • Towing operators
  • Fleet operators
  • Logistics providers
View all transportation legislation

Key Operational Considerations

  • 1F&I Scripts: Update scripts for Finance & Insurance managers and title clerks. Staff must be trained to offer the disclosure option as strictly voluntary; coercion is prohibited.
  • 2Data Privacy: Train compliance staff to treat this new data point as "Sensitive Personal Information" (SPI) until TxDMV clarifies its public disclosure status.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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SB2007
Low
Relating to the voluntary disclosure by an applicant for registration of a motor vehicle of the applicant's military status.
Low Compliance Urgency
Requires routine attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
Texas Department of Motor Vehicles
Primary Author: Sen. Brent Hagenbuch
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025
  • Compliance Deadline: September 1, 2025 (TxDMV systems will likely utilize a "hard cutover"; dealer software and lender data pipelines must be compatible on this date to avoid transaction rejections).
  • Agency Rulemaking: TxDMV must update Form 130-U and digital systems. Watch for proposed rules in the *Texas Register* between Q1 and Q3 2025 regarding the specific definition of "member" and verification standards.

Immediate Action Plan

  • Notify IT/Vendors: Issue a directive to your software vendors immediately requiring support for the SB 2007 data field by August 2025.
  • Audit SCRA Workflows: (Lenders) Update servicing software to cross-reference this new DMV data field against SCRA compliance checklists to mitigate liability.
  • Update Privacy Policies: Determine if holding "military status" data requires updates to your consumer privacy disclosures.
  • Monitor Rulemaking: Assign a compliance officer to track TxDMV board meetings for rules defining "member" and verification requirements.

Operational Changes Required

Contracts

  • DMS Vendors: Review Service Level Agreements (SLAs) with Dealer Management System providers (e.g., CDK, Reynolds, Dealertrack). You must demand confirmation that their systems will support the SB 2007 data field by August 2025.
  • Data Licensing: If you purchase bulk data, review your usage license. Ensure that possessing "military status" data does not violate terms regarding sensitive personal information or protected classes.

Hiring/Training

  • F&I Scripts: Update scripts for Finance & Insurance managers and title clerks. Staff must be trained to offer the disclosure option as strictly voluntary; coercion is prohibited.
  • Data Privacy: Train compliance staff to treat this new data point as "Sensitive Personal Information" (SPI) until TxDMV clarifies its public disclosure status.

Reporting & Record-Keeping

  • Form 130-U: Expect a revision to the *Application for Texas Title and/or Registration*. Old versions of the form may be rejected after the effective date.
  • Database Schema: Internal databases must be re-mapped to ingest a new "Military Status" field. Failure to map this field will result in data corruption or file rejection during bulk transfers.

Fees & Costs

  • No Statutory Fees: The law does not impose a new state fee.
  • Vendor Costs: Anticipate potential "custom programming" fees from third-party software vendors to accommodate the new data schema.

Strategic Ambiguities & Considerations

  • Constructive Notice (SCRA): The law requires this status to be included in released records. If a lender receives data indicating a borrower is a "member of the armed forces," this likely establishes constructive notice. Lenders must clarify if ingesting this data triggers automatic liability under the SCRA if interest rate caps are not immediately applied.
  • Verification Standards: The statute is silent on proof. It is unclear if dealers must verify a Common Access Card (CAC) or simply accept a customer's verbal attestation.
  • Definition of "Member": The text does not explicitly distinguish between Active Duty, Reserve, or National Guard, nor does it exclude Veterans. Rulemaking is required to prevent data integrity issues.

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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.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Mar 6, 2025
Passed Senate
Apr 30, 2025
Passed House
May 10, 2025
Signed
May 24, 2025
Effective
Sep 1, 2025
TopicsMilitary & VeteransOccupational RegulationOccupational Regulation--other Trades & ProfessionsVehicles & TrafficVehicles & Traffic--generalVehicles & Traffic--vehicle RegistrationTransportation, Texas Department ofMotor Vehicles, Texas Department of
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Senate Authors

Sen. Brent HagenbuchRepublican · Primary Author
Coauthors (1)

House Sponsors

Rep. Matt MorganRepublican · Primary Sponsor
Joint Sponsors
Cosponsors (4)

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 SB2007

Q

What does Texas SB2007 do?

SB 2007 mandates a structural change to Texas Department of Motor Vehicles (TxDMV) data architecture, requiring the collection and release of voluntary military status on vehicle records. This legislation creates downstream liability for lenders regarding Servicemembers Civil Relief Act (SCRA) compliance and necessitates immediate software updates for automotive retailers and title service companies to accommodate new data fields.

Q

Who authored SB2007?

SB2007 was authored by Texas Senator Brent Hagenbuch during the Regular Session.

Q

When was SB2007 signed into law?

SB2007 was signed into law by Governor Greg Abbott on May 24, 2025.

Q

Which agencies enforce SB2007?

SB2007 is enforced by Texas Department of Motor Vehicles (TxDMV).

Q

How significant are the changes in SB2007?

The regulatory priority for SB2007 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB2007?

The cost impact of SB2007 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB2007 address?

SB2007 addresses topics including military & veterans, occupational regulation, occupational regulation--other trades & professions, vehicles & traffic and vehicles & traffic--general.

Q

What are the key dates for SB2007?

Key dates for SB2007: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.

Q

Which Texas businesses are affected by SB2007?

SB2007 primarily affects transportation and logistics companies. 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