According to the Legislative Budget Board (LBB), the fiscal implications of SB 1809 are indeterminate. The bill creates a new criminal offense for the fraudulent use, possession, or tampering with gift cards, their packaging, or associated data. While the legislation is expected to increase demands on both state and local correctional systems due to the potential rise in prosecutions, convictions, and community supervision cases, there is not enough available data to quantify how many such offenses might occur or lead to incarceration.

At the state level, the bill could result in more individuals being placed under supervision or incarcerated in state facilities, depending on the severity and volume of offenses committed. The penalty levels range from a state jail felony for smaller-scale offenses to a first-degree felony for large-scale fraud (involving 50 or more gift cards or data items). However, the absence of existing data on the prevalence of gift card-related fraud that matches the bill's criteria makes it difficult for the Office of Court Administration to project associated costs or caseload increases.

From a revenue perspective, the Comptroller of Public Accounts noted that the new offense could increase state revenue slightly through court costs, but again, the impact is classified as indeterminate due to the same data limitations. At the local level, county jails and probation departments may experience a rise in operational burdens, but this, too, is not quantifiable at present.

In sum, while SB 1809 may have a measurable impact on the criminal justice system, both at the state and local levels, there is insufficient empirical data to make firm fiscal projections. The potential for increased enforcement costs exists, but its scale remains uncertain pending actual enforcement trends and prosecutorial activity.

SB 1809 presents a well-considered legislative response to the growing issue of gift card fraud. The bill recognizes that fraud involving gift cards has evolved beyond simple theft, encompassing digital data theft, physical tampering, and deceptive retail tactics. By expanding the definitions and the scope of offenses, including possession, transport, and attempted placement of fraudulent gift cards into the retail stream, the bill empowers law enforcement to address a broader range of criminal activity tied to financial and consumer fraud. The inclusion of terms like "digital imprint" and "counterfeit gift card" demonstrates a modernized understanding of how such frauds are perpetrated.

The shift from a monetary value-based penalty system to one that penalizes based on the number of fraudulent items involved aligns with practical enforcement challenges. Fraudulent gift cards often lack a clearly defined value when seized, making traditional theft thresholds less effective in prosecution. By setting the offense grade based on the number of cards or data elements possessed—ranging from a state jail felony to a first-degree felony—the bill introduces a more enforceable and scalable penalty structure.

From a liberty principle perspective, SB 1809 upholds individual liberty and private property rights by protecting consumers and retailers from deceit and unauthorized access to monetary value. It reinforces personal responsibility by clearly criminalizing harmful fraudulent behavior without imposing burdens on legitimate business operations. Furthermore, the inclusion of a rebuttable presumption and the exemption for commercial entities or government agencies ensures the law is not overbroad, maintaining respect for limited government principles.

In sum, SB 1809 is a narrowly tailored and liberty-aligned measure that addresses a concrete and modern financial crime threat. It empowers law enforcement while safeguarding due process, making it a sound and necessary addition to the Texas Penal Code. As such, Texas Policy Research recommends that lawmakers vote YES on SB 1809.

• Individual Liberty: The bill promotes individual liberty by protecting consumers from fraudulent schemes that target gift cards, which often hold significant monetary value. By clearly defining unlawful behaviors and restricting prosecution to those who act with intent to harm or defraud, the law supports victims' rights without encroaching on lawful personal or commercial activity. The inclusion of due process protections—such as the rebuttable presumption of guilt only after possession of three or more cards—helps preserve civil liberties while still enabling enforcement.
• Personal Responsibility: The bill upholds the principle of personal responsibility by holding individuals accountable for knowingly engaging in fraudulent conduct involving gift cards. It creates clear legal boundaries and consequences for actions such as acquiring cards or digital imprints without consent, tampering with packaging, and inserting fraudulent cards into retail environments. This sends a strong message that deceptive or harmful actions have structured legal repercussions.
• Free Enterprise: The bill supports free enterprise by helping businesses maintain trust in gift card systems, which are integral to modern retail. Fraud undermines confidence in these systems and can lead to financial losses for both merchants and consumers. By penalizing actions that corrupt retail transactions and mislead customers, the bill strengthens the environment for voluntary, honest commercial exchange—essential to free market operations.
• Private Property Rights: The bill strongly reinforces private property rights by treating gift card balances and associated redemption information as protected assets. Criminalizing unauthorized use or tampering affirms that such value belongs solely to the rightful holder (the cardholder) and not to would-be fraudsters. This ensures that individuals and entities can confidently maintain control over their digital and financial property.
• Limited Government: Importantly, the bill maintains respect for limited government. It does not create sweeping new regulatory authority or overreach into ordinary economic activity. Instead, it introduces narrowly tailored criminal provisions focused on conduct carried out with fraudulent intent. Additionally, the bill explicitly exempts legitimate businesses and government agencies from presumptions of wrongdoing, further preventing abuse or misapplication of the law.

• HB 3014 (Same As)
• HB 3168 (Same As)