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Signed Into Law
Signed June 20, 2025Effective 2025-09-01
SB857

Regular Session

Relating to the authorized removal of certain motor vehicles.

Government Affairs & Regulatory Compliance Analysis

SB857: Government Affairs Overview

SB857 grants Texas peace officers and license and weight inspectors the explicit statutory authority to immediately tow and impound vehicles if the operator fails to present a valid driver’s license or proof of financial responsibility (insurance). This legislation converts standard traffic violations into immediate asset seizure events, posing significant disruption risks to logistics carriers, service fleets, and businesses utilizing company vehicles.

Sen. Charles Schwertner·Senate Bill·Regular Session

Moderate
Low Cost
Effective:2025-09-01
Enforcing Agencies

All Texas Peace Officers (Municipal Police, Sheriffs, Constables) • Texas Department of Public Safety (License and Weight Inspectors)

Business Impact

Who SB857 Affects

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

Regulatory Priority: moderate

Notable regulatory updates (effective 2025-09-01). Consider how these changes may affect your operations.

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Transportation

Affected business types:

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

Key Operational Considerations

  • 1Dispatch Protocols: Dispatchers must be trained to verify license status prior to releasing keys or authorizing a run.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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SB857
Moderate
Relating to the authorized removal of certain motor vehicles.
Moderate Compliance Urgency
Requires near-term attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
All Texas Peace OfficersTexas Department of Public Safety
Primary Author: Sen. Charles Schwertner
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: August 1, 2025 (Recommended target to ensure monitoring systems and insurance protocols are active prior to enforcement).
  • Agency Rulemaking: None required. The statute grants immediate enforcement authority to officers on the effective date without need for further DPS administrative rules.

Immediate Action Plan

  • 1. Audit Insurance Proof: Physically verify that every fleet vehicle contains a current, unexpired insurance card today. Do not rely on drivers to check.
  • 2. Activate Continuous Monitoring: Subscribe to a service that alerts HR/Safety immediately upon a change in a driver's license status.
  • 3. Update Policy Handbooks: Issue a memo stating that operating a company vehicle with an invalid license is grounds for immediate termination.
  • 4. Review Insurance Exclusions: Verify your commercial auto policy covers damages/fees incurred if the vehicle is operated by an unlicensed driver; many policies exclude this, leaving you self-insured for the incident.

Operational Changes Required

Contracts

  • Employment Agreements: Insert a mandatory "Duty to Notify" clause requiring employees to report any license suspension, revocation, or expiration within 24 hours. Include indemnification language holding the employee liable for impound/towing fees resulting from their licensure status.
  • Third-Party Logistics (3PL) & Vendor MSAs: Amend Master Service Agreements to require vendors to indemnify your company for costs (including delay penalties and spoilage) if a subcontracted load is impounded due to the vendor's driver eligibility.

Hiring/Training

  • Continuous Monitoring: Transition from annual Motor Vehicle Record (MVR) checks to a continuous monitoring service. You must know if a driver’s license is suspended immediately, not at the end of the year.
  • Dispatch Protocols: Dispatchers must be trained to verify license status prior to releasing keys or authorizing a run.
  • Driver Training: Train drivers on the specific requirement to carry physical or offline-accessible digital proof of insurance to prevent "failure to display" impoundments.

Reporting & Record-Keeping

  • Impound Retrieval Kits: Equip fleet managers with ready-access files containing vehicle titles, powers of attorney, and proof of corporate ownership to expedite vehicle release from impound lots.
  • Driver Qualification Files: Update files to include signed acknowledgments of the new immediate-termination policy regarding driving while suspended.

Fees & Costs

  • Direct Costs: No new state fees or taxes.
  • Risk Costs: Liability for towing fees (variable), daily storage fees, and significant indirect costs associated with supply chain interruption and asset downtime.

Strategic Ambiguities & Considerations

  • Officer Discretion ("May" vs. "Shall"): The statute states an officer *may* remove the vehicle. This creates discretionary enforcement. Expect inconsistency; DPS troopers may enforce strictly, while municipal police may exercise leniency. Prepare for the strictest interpretation.
  • The "Co-Pilot" Exception: The law does not explicitly mandate release of the vehicle if a licensed passenger is present and capable of driving. Until case law or department policy clarifies this, assume the officer has the authority to impound the vehicle regardless of who else is in the cab.

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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 22, 2025
Passed Senate
Apr 3, 2025
Passed House
May 28, 2025
Signed
Jun 20, 2025
Effective
Sep 1, 2025
TopicsLaw EnforcementVehicles & TrafficVehicles & Traffic--driver's Licenses
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Senate Authors

Sen. Charles SchwertnerRepublican · Primary Author

House Sponsor

Rep. AJ LouderbackRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Sen. Charles Schwertner

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Related by Topic

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Quick Reference

Frequently Asked Questions

Common questions about SB857

Q

What does Texas SB857 do?

SB857 grants Texas peace officers and license and weight inspectors the explicit statutory authority to immediately tow and impound vehicles if the operator fails to present a valid driver’s license or proof of financial responsibility (insurance). This legislation converts standard traffic violations into immediate asset seizure events, posing significant disruption risks to logistics carriers, service fleets, and businesses utilizing company vehicles.

Q

Who authored SB857?

SB857 was authored by Texas Senator Charles Schwertner during the Regular Session.

Q

When was SB857 signed into law?

SB857 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce SB857?

SB857 is enforced by All Texas Peace Officers (Municipal Police, Sheriffs, Constables) and Texas Department of Public Safety (License and Weight Inspectors).

Q

How significant are the changes in SB857?

The regulatory priority for SB857 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB857?

The cost impact of SB857 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB857 address?

SB857 addresses topics including law enforcement, vehicles & traffic and vehicles & traffic--driver's licenses.

Q

What are the key dates for SB857?

Key dates for SB857: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.

Q

What are the penalties under SB857?

SB857 establishes the following penalties: administrative/operational penalty of Variable (Standard towing and impoundment fees) for Vehicle operation by driver with: no license (Sec. 521.021), invalid/suspended/revoked license (Sec. 521.457), no insurance (Sec. 601.191), or minor without license (Sec. 729.002).. Consult with legal counsel for specific applicability to your situation.

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