Theft of Service: Texas Penal Code §31.04

The Texas Theft of Service law gives police the right to arrest you if they believe you used a service and planned on not paying the service provider for the work that they did.

In addition to “services” in the common sense of that term, this law also applies to holding rental property past the time that the rental property is supposed to be returned.

The Texas legislature codified this criminal offense in Texas Penal Code Section 31.04. The legislature amended this law in 2023 by allowing notices to be sent to different addresses. In 2019, among other changes, the legislature created a rebuttable presumption of “intent to avoid payment” related to certain rental property under this law when the property was not returned after notice was given or if fewer than three payments were made.

This law has numerous technical provisions related to presumptions and required notices, including the presumption of the intent to avoid payment, the notice required to create that rebuttable presumption, and the notice required to create criminal liability after demand for payment for services rendered.

The Penal Code classifies the Texas Theft of Service law under Title 7 “Offenses Against Property,” Chapter 31 “Theft.” Learn more about the Texas offense of Theft of Service below.

What is the current Texas law about Theft of Service?

Texas law currently defines the offense of Theft of Service in Penal Code Section §31.04 as follows:^[1]

(a) A person commits theft of service if, with intent to avoid payment for service that the actor knows is provided only for compensation:

(1) the actor intentionally or knowingly secures performance of the service by deception, threat, or false token;

(2) having control over the disposition of services of another to which the actor is not entitled, the actor intentionally or knowingly diverts the other’s services to the actor’s own benefit or to the benefit of another not entitled to the services;

(3) having control of personal property under a written rental agreement, the actor holds the property beyond the expiration of the rental period without the effective consent of the owner of the property, thereby depriving the owner of the property of its use in further rentals; or

(4) the actor intentionally or knowingly secures the performance of the service by agreeing to provide compensation and, after the service is rendered, fails to make full payment after receiving notice demanding payment.

This law has numerous technical provisions related to presumptions and notices. Subection (b) deals with presumptions related to the intent to avoid payment. Subection (c) deals with notice – as it relates to the notice required under subsection (a)(4) and as required to create a presumption under subsection (b). Subsection (d) deals with presumption for receipt of the notice. Subsections (d-1), (d-2), (d-3), (d-4), and (d-5) all add additional clarifications to the law.

What changed in 2019?

In 2019, the legislature clarified how the Texas Theft of Service law applied in cases where the alleged theft was in connection to rental property. These changes included creating a rebuttable presumption of intent to avoid payment if you failed to return certain personal rent-to-own property within five business days after receiving notice demanding return; and you made fewer than three complete payments.^[2] In addition, the legislature allowed notice to be sent via commercial delivery service and added presumptions related to the receipt of notice.^[3]

What changed in 2023?

In 2023, the legislature added provisions to the Theft of Service statute that allow notice to be sent to the address shown on records of the person whose service was secured, or:^[4]

if the actor secured performance of service by issuing or passing a check or similar sight order for the payment of money, using the actor’s address shown on: (i) the check or order; or (ii) the records of the bank or other drawee on which the check or order is drawn.

What is the correct notice for Theft of Service cases?

Under the current Texas law, effective as of September 1, 2023, notice is effective for the purposes of triggering liability under the Texas Theft of Service law, if it was:^[5]

(1) in writing;

(2) sent by:

(A) registered or certified mail with return receipt requested; or

(B) commercial delivery service; and

(3) sent to the actor using the actor’s mailing address shown on:

(A) the rental agreement or service agreement;

(B) records of the person whose service was secured; or

(C) if the actor secured performance of service by issuing or passing a check or similar sight order for the payment of money, using the actor’s address shown on:

(i) the check or order; or

(ii) the records of the bank or other drawee on which the check or order is drawn.

How can I be charged with a Theft of Service offense in Texas?

You can be charged with Theft of Service in Texas if the state’s attorneys believe that each of the elements of 31.04(a) as described in the section above have been met.

What is the statute of limitation for Theft of Service in Texas?

Misdemeanor level Theft of Service charges have a two-year limitations period.^[6] Felony level offenses have a three-year limitations period.^[7]

What is the penalty for a Texas Theft of Service offense?

The punishment for a conviction of Theft of Service can range anywhere from a Class C misdemeanor to a First Degree Felony. The value of the stolen service is the factor that determines how serious the punishment is, and it follows the same guidelines as the Theft offense.

If the value of service stolen is less than $100, then a conviction for Theft of Service is punished as a Class C misdemeanor,^[8] with a maximum possible fine under Texas state law of up to $500.

If the value of service stolen is $100 or more but less than $750, then a conviction for Theft of Service is punished as a Class B misdemeanor,^[9] with a maximum possible fine under Texas state law of up to $2,000 and jail time of up to 180 days.

If the value of service stolen is $750 or more but less than $2,500, then a conviction for Theft of Service is punished as a Class A misdemeanor,^[10] with a maximum possible fine under Texas state law of up to $4,000 and jail time of up to one year.

If the value of service stolen is $2,500 or more but less than $30,000, then a conviction for Theft of Service is punished as a State Jail Felony,^[11] with a maximum possible fine under Texas state law of up to $10,000 and jail time of up to two years.

If the value of service stolen is $30,000 or more but less than $150,000, then a conviction for Theft of Service is punished as a Felony of the Third Degree,^[12] with a maximum possible fine under Texas state law of up to $10,000 and prison time of up to 10 years.

If the value of service stolen is $150,000 or more but less than $300,000, then a conviction for Theft of Service is punished as a Felony of the Second Degree,^[13] with a maximum possible fine under Texas state law of up to $10,000 and prison time of up to 20 years.

If the value of service stolen is $300,000 or more then a conviction for Theft of Service is punished as a Felony of the First Degree,^[14] with a maximum possible fine under Texas state law of up to $10,000 and up to life in prison.

Can you get probation for Theft of Service in Texas?

The Texas Code of Criminal Procedure allows both judges and juries to grant probation for Theft of Service, and judges are also allowed to accept deferred adjudication plea deals.^[15]

Note, however, that no matter the offense, neither judges nor juries may recommend community supervision for any suspended sentence of over 10 years.^[16] Also, judges may not grant community supervision after a conviction if (1) the defendant used or exhibited a deadly weapon during the commission of the felony or immediate flight thereafter and (2) the defendant used or exhibited the deadly weapon himself or was a party to the offense and knew that a deadly weapon would be used or exhibited.^[17]

What level of crime is Theft of Service in Texas?

The Penal Code classification of the punishment for Theft of Service ranges from a Class C misdemeanor to a first degree felony, depending on the value of the stolen services.

Learn more about the penalty range for this offense in the section above.

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Legal References:

^1. Texas Penal Code §31.04. This law is current as of 2024.^2. HB 2524, 86th Texas Legislature, Section 1, effective September 1, 2019^3. HB 2524, 86th Texas Legislature, Section 1, effective September 1, 2019^4. a href=”https://statutes.capitol.texas.gov/docs/pe/htm/pe.31.htm#31.03″ target=”_blank” rel=”noopener noreferrer”>Texas Penal Code §31.04(c)(3), as amended by HB 2897, 88th Texas Legislature, Section 1, effective September 1, 2023^5. a href=”https://statutes.capitol.texas.gov/docs/pe/htm/pe.31.htm#31.03″ target=”_blank” rel=”noopener noreferrer”>Texas Penal Code §31.04(c)^6. Code of Criminal Procedure 12.02(a)^7. See Code of Criminal Procedure 12.01(9)^8. Texas Penal Code §31.04(e)(1)^9. Texas Penal Code §31.04(e)(2)^10. Texas Penal Code §31.04(e)(3)^11. Texas Penal Code §31.04(e)(4)^12 Texas Penal Code §31.04(e)(5)^13. Texas Penal Code §31.04(e)(6)^14. Texas Penal Code §31.04(e)(7)^15. See Chapter 42, Texas Code of Criminal Procedure, Art. 42A.054, Art. 42A.056, Art. 42A.102 .^16. Art. 42A.053(c), Texas Code of Criminal Procedure^17. Art. 42A.054(b), Texas Code of Criminal Procedure