Texas 2025 - 89th Regular

Texas House Bill HB3109 Compare Versions

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1	1	89R9650 JCG-D
2	2	By: Perez of Harris H.B. No. 3109
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the operations of the Financial Crimes Intelligence
10	10	Center.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Chapter 2312, Occupations Code, is transferred
13	13	to Subtitle B, Title 4, Government Code, redesignated as Chapter
14	14	426, Government Code, and amended to read as follows:
15	15	CHAPTER 426 [2312]. FINANCIAL CRIMES INTELLIGENCE CENTER
16	16	SUBCHAPTER A. GENERAL PROVISIONS
17	17	Sec. 426.001 [2312.001]. DEFINITIONS. In this chapter:
18	18	(1) "Card fraud" means an act that constitutes the
19	19	offense of fraudulent use or possession of a credit card or debit
20	20	card under Section 32.315, Penal Code.
21	21	(2) "Center" means the financial crimes intelligence
22	22	center established under this chapter.
23	23	(2-a) "Check fraud" means conduct that constitutes an
24	24	offense under Section 32.21, Penal Code, with respect to a sight
25	25	order, as defined by Section 1.07, Penal Code.
26	26	(3) "Commission" means the Texas Commission of
27	27	Licensing and Regulation.
28	28	(4) "Department" means the Texas Department of
29	29	Licensing and Regulation.
30	30	(4-a) "Electronic fund transfer" means any transfer of
31	31	funds, other than a transaction originated by check, money order,
32	32	or similar paper instrument, that is initiated through an
33	33	electronic terminal, telephonic instrument, computer, or magnetic
34	34	tape and that orders, instructs, or authorizes a financial
35	35	institution to debit or credit an account.
36	36	(4-b) "Payment fraud" means:
37	37	(A) conduct constituting card fraud or check
38	38	fraud;
39	39	(B) sending an unauthorized payment order;
40	40	(C) initiating an electronic fund transfer
41	41	without the consent of the account holder; or
42	42	(D) any other act involving a fraudulent order
43	43	for payment of money, as defined by commission rule.
44	44	(5) "Skimmer" means an electronic, mechanical, or
45	45	other device that may be used to unlawfully intercept electronic
46	46	communications or data to perpetrate card fraud.
47	47	(6) "Unauthorized payment order" means a payment order
48	48	received by a receiving bank that is not:
49	49	(A) an authorized order of a customer identified
50	50	as sender under Section 4A.202(a), Business & Commerce Code; or
51	51	(B) effective as an order of the customer under
52	52	Section 4A.202(b) of that code.
53	53	Sec. 426.002 [2312.002]. RULES. The commission shall
54	54	adopt rules as necessary to implement this chapter.
55	55	SUBCHAPTER B. PURPOSE AND ADMINISTRATION
56	56	Sec. 426.051 [2312.051]. FINANCIAL CRIMES INTELLIGENCE
57	57	CENTER ESTABLISHED. The commission shall establish the center
58	58	within the department.
59	59	Sec. 426.052 [2312.052]. PURPOSES OF CENTER. The purposes
60	60	of the center are to:
61	61	(1) serve as the state's primary entity for the
62	62	planning, coordination, and integration of law enforcement
63	63	agencies and other governmental agencies that respond to criminal
64	64	activity related to payment [card] fraud, including through the use
65	65	of skimmers; and
66	66	(2) maximize the ability of the department, law
67	67	enforcement agencies, and other governmental agencies to detect,
68	68	prevent, and respond to criminal activities related to payment
69	69	[card] fraud.
70	70	Sec. 426.053 [2312.053]. OPERATION AGREEMENTS AUTHORIZED;
71	71	DIRECTOR [CHIEF INTELLIGENCE COORDINATOR]. (a) The department:
72	72	(1) may enter into agreements with law enforcement
73	73	agencies or other governmental agencies for the operation of the
74	74	center; and
75	75	(2) shall enter into an agreement with a law
76	76	enforcement agency or other governmental agency for the appointment
77	77	of a director [chief intelligence coordinator] to supervise and
78	78	manage the operation of the center.
79	79	(b) The director [chief intelligence coordinator] appointed
80	80	under the agreement required by Subsection (a)(2) may be a licensed
81	81	peace officer. The agreement must provide that the commission of a
82	82	director [chief intelligence coordinator] who is a licensed peace
83	83	officer will be carried by the agency with which the department
84	84	enters into the agreement under that subdivision.
85	85	(c) Information a law enforcement agency or other
86	86	governmental agency collects and maintains under an agreement
87	87	entered into with the department under this chapter is the
88	88	intellectual property of the center. On termination of the
89	89	agreement, the contracting agency shall transfer the information to
90	90	the department in accordance with the terms of the agreement.
91	91	Sec. 426.054 [2312.054]. POWERS AND DUTIES. (a) The
92	92	center may collaborate with federal, state, and local governmental
93	93	agencies to accomplish the purposes of the center.
94	94	(b) The center shall assist law enforcement agencies, other
95	95	governmental agencies, financial institutions, credit card
96	96	issuers, debit card issuers, payment card networks, institutions of
97	97	higher education, and merchants in their efforts to develop and
98	98	implement strategies to:
99	99	(1) prevent and respond to payment fraud;
100	100	(2) detect skimmers; and
101	101	(3) [(2)] ensure an effective response if a skimmer is
102	102	found[; and
103	103	[(3) prevent card fraud].
104	104	(c) The center may:
105	105	(1) serve as a centralized collection point for
106	106	information related to payment [card] fraud;
107	107	(2) provide training and educational opportunities to
108	108	law enforcement;
109	109	(3) provide outreach to the public; and
110	110	(4) release information to affected financial
111	111	institutions, credit card issuers, debit card issuers, payment card
112	112	networks, institutions of higher education, and merchants if the
113	113	center does not consider the information to be sensitive to law
114	114	enforcement.
115	115	(d) For purposes of Subsection (c)(4), information is
116	116	considered sensitive to law enforcement if the information could
117	117	cause harm to law enforcement activities or jeopardize an
118	118	investigation or operation if disclosed.
119	119	Sec. 426.055 [2312.055]. ANNUAL REPORT. (a) Not later
120	120	than December 1 of each year, the director [chief intelligence
121	121	coordinator] shall file a report with the department.
122	122	(b) The report must include:
123	123	(1) a plan of operation for the center and an estimate
124	124	of the amount of money necessary to implement that plan;
125	125	(2) an assessment of the current state of payment
126	126	[card] fraud in this state, including:
127	127	(A) an identification of the geographic
128	128	locations in this state that have the highest statistical
129	129	probability for payment [card] fraud; and
130	130	(B) a summary of payment [card] fraud statistics
131	131	for the year in which the report is filed;
132	132	(3) a detailed plan of operation for combatting
133	133	payment [card] fraud;
134	134	(4) a communications plan for outreach to law
135	135	enforcement agencies, financial institutions, credit card issuers,
136	136	debit card issuers, payment card networks, merchants, and the
137	137	public; and
138	138	(5) a list of expenditures made since the most recent
139	139	report was filed with the department.
140	140	SUBCHAPTER C. FINANCIAL PROVISIONS
141	141	Sec. 426.101 [2312.101]. FUNDING. The department may
142	142	solicit and accept gifts, grants, and other donations to fund,
143	143	administer, and carry out the purposes of the center, except that
144	144	the department may not solicit or accept a gift, grant, or other
145	145	donation from a license holder as defined by Section 2310.151,
146	146	Occupations Code.
147	147	Sec. 426.102 [2312.102]. AWARD OF GRANTS. (a) Subject to
148	148	the availability of appropriated money, the department may award
149	149	grants for the purposes of this chapter by entering into a contract
150	150	with each grant recipient.
151	151	(b) A grant recipient may use grant money to:
152	152	(1) reduce payment [card] fraud by removing skimmers;
153	153	(2) purchase or upgrade payment fraud deterrence
154	154	equipment, including unique locking systems, cameras, and lights;
155	155	(3) provide training opportunities regarding payment
156	156	fraud and skimmers; and
157	157	(4) conduct public outreach regarding payment [card]
158	158	fraud.
159	159	SECTION 2. As soon as practicable after the effective date
160	160	of this Act, the Texas Commission of Licensing and Regulation shall
161	161	adopt rules necessary to implement the changes in law made by this
162	162	Act to Chapter 426, Government Code, as transferred, redesignated,
163	163	and amended by this Act.
164	164	SECTION 3. This Act takes effect September 1, 2025.