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§ 140B.104.Disposition of Forfeited Property

Title 6. Miscellaneous Provisions · Chapter 140B. Civil Remedies and Enforcement Related to Racketeering and Unlawful Debt Collection · Subchapter C. Civil Remedies · Last amended 2023 · Last verified August 29, 2026

In one sentenceSection 140B.104 requires forfeited property to be disposed of as soon as commercially feasible, with provision for innocent persons and prompt distribution of proceeds.

Full Text of § 140B.104

Text sizeJump to: (a) (b) (c)

(a)The state shall dispose of all forfeited property as soon as commercially feasible. If property is not exercisable or transferable for value by the state, the state may destroy or otherwise dispose of the property.
(b)All forfeitures or dispositions under this subchapter shall be made with due provision for the rights of innocent persons.
(c)The state shall promptly distribute the proceeds realized from the forfeiture and disposition of property under this section in accordance with Subchapter D.
End

Plain-English Summary

Three short subsections on what becomes of property once the state owns it.

Subsection (a): the state shall dispose of all forfeited property as soon as commercially feasible. Where property is not exercisable or transferable for value, the state may destroy or otherwise dispose of it.

"As soon as commercially feasible" is a real constraint, and a sensible one. It requires sale without delay but does not force a fire sale — dumping a building on a bad market would reduce what reaches victims and the public purse.

The second sentence covers what cannot be sold. A non-transferable licence, a personal contractual right, contraband: these have no market, and the state may destroy them.

Subsection (b) repeats the chapter’s recurring safeguard: all forfeitures and dispositions shall be made with due provision for the rights of innocent persons.

Placing it here as well as in the remedies section matters. A claim can survive the judgment — a spouse’s community interest, a lender’s security, a supplier’s lien — and this carries the protection through to the sale itself.

Subsection (c) sends the money onward: the state shall promptly distribute the proceeds realized from forfeiture and disposition in accordance with Subchapter D.

So the state is a conduit, not a holder. Two obligations of promptness bracket the process — dispose without delay, distribute without delay — and the distribution rules in Subchapter D put valid claims, including victim restitution, ahead of any agency share.

Frequently Asked Questions

How quickly must forfeited property be sold?

As soon as commercially feasible — without delay, but without forcing a sale at a loss.

What happens to property that cannot be sold?

Where it is not exercisable or transferable for value, the state may destroy or otherwise dispose of it.

Where do the proceeds go?

They are distributed promptly under Subchapter D, which pays valid claims and victim restitution before any agency share.

Amendment History

  • Added by Acts 2023, 88th Leg., R.S., Ch. 885 (H.B. 4635), Sec. 2, eff. September 1, 2023.
Source & verification. Section text is reproduced verbatim from Texas Legislature Online (statutes.capitol.texas.gov). Enacted by the Texas Legislature. Current through May 14, 2026. Last verified August 29, 2026. · Official source