JD Key Consulting Logo
SB1451

Regular Session

Relating to increasing the criminal penalty for the offense of stealing or receiving a stolen check or similar sight order.

Low
Low Cost
Effective:2025-09-01
SB1451
Low
Relating to increasing the criminal penalty for the offense of stealing or receiving a stolen check or similar sight order.
Low Compliance Urgency
Requires routine attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
District Attorneys/State Prosecu...Local Law Enforcement
Primary Author: Sen. Peter Flores
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 for updating Employee Handbooks and security protocols to ensure staff are on notice prior to the effective date).
  • Agency Rulemaking: None. This is a Penal Code amendment; no regulatory agency will issue clarifying rules. Interpretation will occur through the judicial system.

Immediate Action Plan

  • 1. Update Policy Documents: Revise the "Theft and Fraud" section of your Employee Handbook to reflect the felony status of check theft by August 1, 2025.
  • 2. Audit Physical Security: Conduct a walkthrough of your accounts payable and payroll departments. Ensure check stock is locked and access is logged.
  • 3. Verify Digital Logs: Ensure your check-printing software maintains an unalterable audit trail of who printed specific checks.
  • 4. Brief Legal/Security: Instruct your internal legal and security teams to request felony prosecution and full restitution in all future check theft cases occurring after September 1.

Operational Changes Required

Contracts

  • Vendor Agreements: Review contracts with third-party payroll processors, couriers, and lockbox providers. Update indemnification clauses to specifically address liability for "felonious acts" regarding financial instruments.
  • Insurance Policies: Review Commercial Crime and Fidelity Bond policies. Ensure your "Proof of Loss" procedures align with requirements for reporting felonies to law enforcement, as this may be a prerequisite for maximum payout.

Hiring/Training

  • Employee Handbooks: Update Codes of Conduct immediately. Explicitly state that theft of company checks is a State Jail Felony under Texas law. Use this language as a specific deterrent during onboarding.
  • Security Training: Train Loss Prevention and Internal Audit teams that check theft is no longer a "petty" crime. Internal investigations must now be conducted with the rigor required for felony prosecution referrals.

Reporting & Record-Keeping

  • Evidence Chain of Custody: To secure a felony conviction, the standard of proof is high. Implement strict logs for access to physical check stock and check-printing software.
  • Incident Reporting: When filing police reports for stolen checks after September 1, 2025, explicitly cite Texas Penal Code Section 32.24 and the felony classification to prevent intake officers from misclassifying the report as a misdemeanor.

Fees & Costs

  • No New State Fees: There are no administrative filing fees associated with this law.
  • Indirect Costs: Potential minor costs associated with upgrading physical security for check storage or legal counsel fees for reviewing updated handbook language.

Strategic Ambiguities & Considerations

  • "Similar Sight Order": The statute applies to checks and "similar sight orders." While this covers cashier's checks and drafts, businesses utilizing novel paper payment instruments or warrants should consult counsel to confirm coverage.
  • Prosecutorial Discretion: While the law mandates a felony classification, District Attorneys retain discretion to plea these cases down to misdemeanors to manage docket loads. Corporate counsel must be prepared to aggressively advocate for felony charges to ensure the deterrent effect is realized.

Need Help Understanding Implementation?

Our government affairs experts can walk you through this bill's specific impact on your operations.

Schedule Consultation

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
Feb 19, 2025
Passed Senate
Mar 19, 2025
Passed House
May 23, 2025
Signed
Jun 20, 2025
TopicsCrimesCrimes--against PropertyCrimes--miscellaneousCriminal ProcedureCriminal Procedure--generalChecks
03

Senate Authors

Sen. Peter FloresRepublican · Primary Author

House Sponsor

Rep. David CookRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

Explore more bills from this author and on related topics

More from Sen. Peter Flores

View all bills by Sen. Peter Flores

Related by Topic

View more Crimes legislation
Quick Reference

Frequently Asked Questions

Common questions about SB1451

Q

What does Texas SB1451 do?

SB1451 reclassifies the theft or receipt of a stolen check from a Class A misdemeanor to a State Jail Felony, effective September 1, 2025. This legislation significantly increases the criminal liability for internal employee fraud and external mail theft, providing businesses with stronger leverage for prosecution and restitution, provided their internal evidence chains meet felony standards. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: August 1, 2025 (Recommended target for updating Employee Handbooks and security protocols to ensure staff are on notice prior to the effective date).

Q

Who authored SB1451?

SB1451 was authored by Texas Senator Peter Flores during the Regular Session.

Q

When was SB1451 signed into law?

SB1451 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce SB1451?

SB1451 is enforced by District Attorneys/State Prosecutors and Local Law Enforcement.

Q

How urgent is compliance with SB1451?

The compliance urgency for SB1451 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

Q

What is the cost impact of SB1451?

The cost impact of SB1451 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB1451 address?

SB1451 addresses topics including crimes, crimes--against property, crimes--miscellaneous, criminal procedure and criminal procedure--general.

Legislative data provided by LegiScanLast updated: November 25, 2025

Need Strategic Guidance on This Bill?

Need help with Government Relations, Lobbying, or compliance? JD Key Consulting has the expertise you're looking for.