58 | 42 | | (7) "Service company" and "service technician" have |
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59 | 43 | | the meanings assigned by Section 2310.151 [13.451], Occupations |
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60 | 44 | | [Agriculture] Code. |
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61 | 45 | | (8) "Skimmer" means a wire or electronic device that |
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62 | 46 | | is capable of unlawfully intercepting electronic communications or |
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63 | 47 | | data to perpetrate fraud. [The term includes a re-encoder and |
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64 | 48 | | scanning device, as those terms are defined by Section 522.001.] |
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65 | 49 | | SECTION 3. Subchapter A, Chapter 607, Business & Commerce |
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66 | 50 | | Code, is amended by adding Sections 607.002, 607.003, and 607.004 |
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67 | 51 | | to read as follows: |
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68 | 52 | | Sec. 607.002. ADMINISTRATION AND ENFORCEMENT OF CHAPTER. |
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69 | 53 | | (a) The department shall administer and enforce this chapter. |
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70 | 54 | | (b) The commission or the executive director may enforce |
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71 | 55 | | this chapter, a rule adopted under this chapter, or an order of the |
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72 | 56 | | commission or executive director as provided by Subchapters F and |
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73 | 57 | | G, Chapter 51, Occupations Code. |
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74 | 58 | | Sec. 607.003. FUNDING. The department may solicit and |
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75 | 59 | | accept gifts, grants, and other donations for purposes of |
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76 | 60 | | administering this chapter, except that the department may not |
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77 | 61 | | solicit or accept a gift, grant, or other donation from a license |
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78 | 62 | | holder as defined by Section 2310.151, Occupations Code. |
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79 | 63 | | Sec. 607.004. RULES. The commission shall adopt rules for |
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80 | 64 | | administering this chapter. |
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81 | 65 | | SECTION 4. Section 607.053, Business & Commerce Code, is |
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82 | 66 | | amended to read as follows: |
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83 | 67 | | Sec. 607.053. NOTICE OF DISCOVERY OF SKIMMER REQUIRED. (a) |
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84 | 68 | | If a service technician discovers a skimmer in or on a motor fuel |
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85 | 69 | | [the] unattended payment terminal or [of a] motor fuel metering |
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86 | 70 | | device [dispenser], the service technician or service company that |
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87 | 71 | | employs the technician shall [immediately] notify the department |
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88 | 72 | | and the merchant of the skimmer in the manner prescribed by |
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89 | 73 | | commission rule. |
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90 | 74 | | (b) If a merchant discovers a [the] skimmer in or on a motor |
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91 | 75 | | fuel unattended payment terminal or motor fuel metering device or |
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92 | 76 | | is notified of the presence of a skimmer [by a service technician or |
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93 | 77 | | other person], the merchant shall, in the manner prescribed by |
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94 | 78 | | commission rule: |
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95 | 79 | | (1) [immediately] disable, or cause to be disabled, |
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96 | 80 | | the motor fuel metering device [dispenser] on which the skimmer was |
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97 | 81 | | discovered; |
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98 | 82 | | (1-a) [and] notify a law enforcement agency and the |
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99 | 83 | | department that a skimmer has been detected; and |
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100 | 84 | | (2) take appropriate measures to protect [from |
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101 | 85 | | tampering with] the motor fuel metering device from being tampered |
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102 | 86 | | with [dispenser] until the department or law enforcement agency |
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103 | 87 | | arrives and the skimmer is removed[; and |
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104 | 88 | | [(3) not later than 24 hours after the discovery of the |
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105 | 89 | | skimmer or a report of the discovery of a skimmer is made to the |
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106 | 90 | | merchant, report the discovery to the department]. |
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107 | 91 | | SECTION 5. Section 607.054(a), Business & Commerce Code, is |
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108 | 92 | | amended to read as follows: |
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109 | 93 | | (a) The department may accept a report of a suspected |
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110 | 94 | | skimmer from any interested person, including [In this section, |
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111 | 95 | | "interested person" includes]: |
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112 | 96 | | (1) a law enforcement agency; |
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113 | 97 | | (2) a financial institution; |
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172 | 151 | | SECTION 8. Subchapter C, Chapter 607, Business & Commerce |
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173 | 152 | | Code, is amended by adding Section 607.1021 to read as follows: |
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174 | 153 | | Sec. 607.1021. CIVIL PENALTY. (a) A person who violates |
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175 | 154 | | this chapter or a rule adopted under this chapter is liable to the |
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176 | 155 | | state for a civil penalty. |
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177 | 156 | | (b) The attorney general or the executive director may bring |
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178 | 157 | | an action to collect a penalty under this section. |
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179 | 158 | | (c) The provisions of Section 51.352, Occupations Code, |
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180 | 159 | | relating to an action to collect and the amount of a civil penalty |
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181 | 160 | | under that section apply to an action to collect and the amount of a |
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182 | 161 | | civil penalty under this section. |
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183 | 162 | | SECTION 9. Section 607.103, Business & Commerce Code, is |
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184 | 163 | | amended to read as follows: |
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185 | 164 | | Sec. 607.103. OFFENSES; PENALTIES. (a) A person commits an |
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186 | 165 | | offense if the person refuses to allow an inspection of a motor fuel |
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187 | 166 | | metering device [dispenser] at the merchant's place of business in |
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188 | 167 | | violation of Section 607.055. An offense under this subsection is a |
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189 | 168 | | Class C misdemeanor. |
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190 | 169 | | (b) A person commits an offense if the person negligently or |
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191 | 170 | | recklessly disposes of a skimmer that was installed on a motor fuel |
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192 | 171 | | [the] unattended payment terminal or [of a] motor fuel metering |
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193 | 172 | | device [dispenser] by another person. An offense under this |
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194 | 173 | | subsection is a Class B misdemeanor. |
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195 | 174 | | (c) A person commits an offense if, knowing that an |
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196 | 175 | | investigation is ongoing or that a criminal proceeding has been |
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197 | 176 | | commenced and is pending, the person disposes of a skimmer that was |
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198 | 177 | | installed on a motor fuel [the] unattended payment terminal or [of |
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199 | 178 | | a] motor fuel metering device [dispenser] by another person. An |
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200 | 179 | | offense under this subsection is a felony of the third degree. |
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201 | 180 | | SECTION 10. Section 2310.101, Occupations Code, is amended |
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202 | 181 | | by adding Subsection (c) to read as follows: |
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203 | 182 | | (c) Regardless of whether the department has received a |
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204 | 183 | | report of a suspected skimmer under Section 607.053 or 607.054, |
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205 | 184 | | Business & Commerce Code, the department may inspect each motor |
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206 | 185 | | fuel metering device located at a dealer's retail outlet if the |
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207 | 186 | | department has reason to believe that a skimmer is installed on or |
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208 | 187 | | in a motor fuel unattended payment terminal or motor fuel metering |
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209 | 188 | | device at the retail outlet. In this subsection, "motor fuel |
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210 | 189 | | unattended payment terminal" and "skimmer" have the meanings |
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211 | 190 | | assigned by Section 607.001, Business & Commerce Code. |
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212 | 191 | | SECTION 11. Chapter 424, Government Code, as added by |
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213 | 192 | | Chapter 863 (H.B. 2945), Acts of the 86th Legislature, Regular |
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214 | 193 | | Session, 2019, is transferred to Subtitle A, Title 14, Occupations |
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215 | 194 | | Code, redesignated as Chapter 2312, Occupations Code, and amended |
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216 | 195 | | to read as follows: |
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217 | 196 | | CHAPTER 2312 [424]. FINANCIAL CRIMES INTELLIGENCE [PAYMENT FRAUD |
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218 | 197 | | FUSION] CENTER |
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219 | 198 | | SUBCHAPTER A. GENERAL PROVISIONS |
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220 | 199 | | Sec. 2312.001 [424.001]. DEFINITIONS. In this chapter: |
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221 | 200 | | (1) "Card fraud" means an act that constitutes the |
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222 | 201 | | offense of fraudulent use or possession of a credit card or debit |
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223 | 202 | | card under Section 32.315, Penal Code. |
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224 | 203 | | (2) "Center" means the financial crimes intelligence |
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225 | 204 | | [payment fraud fusion] center established under this chapter. |
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226 | 205 | | (3) "Commission" means the Texas Commission of |
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227 | 206 | | Licensing and Regulation. |
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228 | 207 | | (4) "Department" means the Texas Department of |
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229 | 208 | | Licensing and Regulation. |
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230 | 209 | | (5) [(2) "Payment card" has the meaning assigned by |
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231 | 210 | | Section 522.001, Business & Commerce Code. |
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232 | 211 | | [(3) "Payment fraud" means a fraudulent payment |
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233 | 212 | | transaction made by the unauthorized use of a payment card or other |
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234 | 213 | | electronic means. |
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235 | 214 | | [(4)] "Skimmer" means an [a wire or] electronic, |
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236 | 215 | | mechanical, or other device that may be used to [is capable of] |
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237 | 216 | | unlawfully intercept [intercepting] electronic communications or |
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238 | 217 | | data to perpetrate card fraud. |
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239 | 218 | | Sec. 2312.002. RULES. The commission shall adopt rules as |
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240 | 219 | | necessary to implement this chapter [The term includes a re-encoder |
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241 | 220 | | and scanning device, as those terms are defined by Section 522.001, |
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242 | 221 | | Business & Commerce Code]. |
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243 | 222 | | SUBCHAPTER B. PURPOSE AND ADMINISTRATION |
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244 | 223 | | Sec. 2312.051 [424.002]. FINANCIAL CRIMES INTELLIGENCE |
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245 | 224 | | [PAYMENT FRAUD FUSION] CENTER ESTABLISHED. [(a) Law enforcement |
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246 | 225 | | agencies or other governmental agencies designated by the attorney |
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247 | 226 | | general may collaborate with the attorney general to establish a |
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248 | 227 | | payment fraud fusion center. |
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249 | 228 | | [(b)] The commission [attorney general] shall establish the |
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250 | 229 | | center within the department [in the City of Tyler]. |
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251 | 230 | | Sec. 2312.052. PURPOSES [424.003. PURPOSE] OF CENTER. |
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252 | 231 | | [(a)] The purposes of the center are to: |
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253 | 232 | | (1) serve [serves] as the state's primary entity for |
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254 | 233 | | the planning, coordination, and integration of [the capabilities |
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255 | 234 | | of] law enforcement agencies and other governmental agencies that |
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256 | 235 | | [to] respond to criminal activity [that is] related to card |
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257 | 236 | | [payment] fraud, including through the use of skimmers; and[.] |
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258 | 237 | | (2) [(b) The purpose of the center is to] maximize |
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259 | 238 | | the ability of the department, law enforcement agencies, and other |
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260 | 239 | | governmental agencies to detect, prevent, and respond to criminal |
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261 | 240 | | activities related to card [payment] fraud. |
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262 | 241 | | Sec. 2312.053. OPERATION AGREEMENTS AUTHORIZED; CHIEF |
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263 | 242 | | INTELLIGENCE COORDINATOR. (a) The department: |
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264 | 243 | | (1) may enter into agreements with law enforcement |
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265 | 244 | | agencies or other governmental agencies for the operation of the |
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266 | 245 | | center; and |
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267 | 246 | | (2) shall enter into an agreement with a law |
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268 | 247 | | enforcement agency or other governmental agency for the appointment |
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269 | 248 | | of a chief intelligence coordinator to supervise and manage the |
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270 | 249 | | operation of the center. |
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271 | 250 | | (b) The chief intelligence coordinator appointed under the |
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272 | 251 | | agreement required by Subsection (a)(2) may be a licensed peace |
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273 | 252 | | officer. The agreement must provide that the commission of a chief |
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274 | 253 | | intelligence coordinator who is a licensed peace officer will be |
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275 | 254 | | carried by the agency with which the department enters into the |
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276 | 255 | | agreement under that subdivision. |
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277 | 256 | | (c) Information a law enforcement agency or other |
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278 | 257 | | governmental agency collects and maintains under an agreement |
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279 | 258 | | entered into with the department under this chapter is the |
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280 | 259 | | intellectual property of the center. On termination of the |
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281 | 260 | | agreement, the contracting agency shall transfer the information to |
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282 | 261 | | the department in accordance with the terms of the agreement. |
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283 | 262 | | Sec. 2312.054 [424.004]. POWERS AND DUTIES. (a) The |
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330 | 305 | | (5) a list of expenditures made since the most recent |
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331 | 306 | | report was filed with the department. |
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332 | 307 | | SUBCHAPTER C. FINANCIAL PROVISIONS |
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333 | 308 | | [Sec. 424.005. DIRECTOR. (a) The attorney general shall |
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334 | 309 | | appoint a director to supervise and manage the center. |
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335 | 310 | | [(b) The director is under the supervision and direction of |
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336 | 311 | | the attorney general. |
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337 | 312 | | [Sec. 424.006. RULES. The attorney general by rule shall |
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338 | 313 | | adopt reasonable policies and procedures necessary to implement |
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339 | 314 | | this chapter. |
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340 | 315 | | [Sec. 424.007. FACILITIES AND ADMINISTRATIVE SUPPORT. A |
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341 | 316 | | municipality's police department may provide facilities and |
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342 | 317 | | administrative support to a payment fraud fusion center established |
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343 | 318 | | in the municipality.] |
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344 | 319 | | Sec. 2312.101 [424.008]. FUNDING [GIFTS AND GRANTS]. The |
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345 | 320 | | department [payment fraud fusion center] may solicit and accept |
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346 | 321 | | gifts, grants, and other donations to fund, administer, and carry |
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347 | 322 | | out the purposes [purpose] of the center, except that the |
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348 | 323 | | department may not solicit or accept a gift, grant, or other |
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349 | 324 | | donation from a license holder as defined by Section 2310.151. |
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350 | 325 | | Sec. 2312.102. AWARD OF GRANTS. (a) Subject to the |
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351 | 326 | | availability of appropriated money, the department may award grants |
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352 | 327 | | for the purposes of this chapter by entering into a contract with |
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353 | 328 | | each grant recipient. |
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354 | 329 | | (b) A grant recipient may use grant money to: |
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355 | 330 | | (1) reduce card fraud by removing skimmers; |
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356 | 331 | | (2) purchase or upgrade fraud deterrence equipment, |
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357 | 332 | | including unique locking systems, cameras, and lights; |
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358 | 333 | | (3) provide training opportunities regarding |
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359 | 334 | | skimmers; and |
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360 | 335 | | (4) conduct public outreach regarding card fraud. |
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361 | 336 | | SECTION 12. The following provisions of the Business & |
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362 | 337 | | Commerce Code are repealed: |
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363 | 338 | | (1) Section 607.001(9); |
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364 | 339 | | (2) Section 607.051; |
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365 | 340 | | (3) Section 607.052; |
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366 | 341 | | (4) Section 607.054(b); |
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367 | 342 | | (5) Section 607.101; and |
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368 | 343 | | (6) Section 607.102. |
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369 | 344 | | SECTION 13. (a) The Texas Department of Licensing and |
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370 | 345 | | Regulation may establish a workgroup composed of stakeholders to |
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371 | 346 | | provide input, advice, and recommendations regarding the |
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372 | 347 | | department's powers and duties under and the administration of: |
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373 | 348 | | (1) Chapter 607, Business & Commerce Code, as amended |
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374 | 349 | | by this Act; |
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375 | 350 | | (2) Section 2310.101(c), Occupations Code, as added by |
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376 | 351 | | this Act; and |
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377 | 352 | | (3) Chapter 2312, Occupations Code, as transferred, |
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378 | 353 | | redesignated, and amended by this Act. |
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379 | 354 | | (b) If a workgroup is established as authorized by |
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380 | 355 | | Subsection (a) of this section, the Texas Department of Licensing |
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381 | 356 | | and Regulation shall lead the workgroup and determine the |
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382 | 357 | | workgroup's size, composition, and scope of purpose. |
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383 | 358 | | (c) A workgroup established under this section is abolished |
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384 | 359 | | and this section expires December 1, 2022. |
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385 | 360 | | SECTION 14. The Texas Commission of Licensing and |
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386 | 361 | | Regulation shall adopt rules necessary to implement the changes in |
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398 | 373 | | (3) all obligations, contracts, property, and records |
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399 | 374 | | of the office of the attorney general that are related to a power, |
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400 | 375 | | duty, function, program, or activity transferred under Subdivision |
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401 | 376 | | (2) of this subsection are transferred to the Texas Commission of |
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402 | 377 | | Licensing and Regulation and the Texas Department of Licensing and |
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403 | 378 | | Regulation; and |
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404 | 379 | | (4) all pending complaints, investigations, or |
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405 | 380 | | contested cases that are related to a power, duty, function, |
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406 | 381 | | program, or activity transferred under Subdivision (2) of this |
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407 | 382 | | subsection are transferred without change in status to the Texas |
---|
408 | 383 | | Commission of Licensing and Regulation and the Texas Department of |
---|
409 | 384 | | Licensing and Regulation. |
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410 | 385 | | (b) A rule or form adopted by the office of the attorney |
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411 | 386 | | general that relates to a power, duty, function, program, or |
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412 | 387 | | activity transferred under Subsection (a)(2) of this section is a |
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413 | 388 | | rule or form of the Texas Commission of Licensing and Regulation and |
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414 | 389 | | the Texas Department of Licensing and Regulation, as applicable, |
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415 | 390 | | until altered by the commission. |
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416 | 391 | | SECTION 16. Section 607.103, Business & Commerce Code, as |
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417 | 392 | | amended by this Act, applies only to an offense committed on or |
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