Texas 2025 - 89th Regular

Texas House Bill HB4301 Compare Versions

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Old	New	Differences
1	1	89R15796 JCG-F
2	2	By: Cook H.B. No. 4301
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the financial crimes intelligence center, including
10	10	the establishment of an advisory committee and grants supporting
11	11	the investigation and prosecution of certain offenses.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Chapter 2312, Occupations Code, is transferred
14	14	to Subtitle B, Title 4, Government Code, redesignated as Chapter
15	15	426, Government Code, and amended to read as follows:
16	16	CHAPTER 426 [2312]. FINANCIAL CRIMES INTELLIGENCE CENTER
17	17	SUBCHAPTER A. GENERAL PROVISIONS
18	18	Sec. 426.001 [2312.001]. DEFINITIONS. In this chapter:
19	19	(1) "Card fraud" means conduct constituting an [act
20	20	that constitutes the] offense [of fraudulent use or possession of a
21	21	credit card or debit card] under Section 32.315, Penal Code. The
22	22	term includes the commission of the offense by use of a skimmer.
23	23	(2) "Cargo theft" means conduct constituting an
24	24	offense under Section 31.18, Penal Code.
25	25	(3) [(2)] "Center" means the financial crimes
26	26	intelligence center established under this chapter.
27	27	(4) "Chief" means the chief intelligence coordinator
28	28	appointed to supervise and manage the operation of the center under
29	29	Section 426.053.
30	30	(5) [(3)] "Commission" means the Texas Commission of
31	31	Licensing and Regulation.
32	32	(6) [(4)] "Department" means the Texas Department of
33	33	Licensing and Regulation.
34	34	(7) "Law enforcement agency" means an agency of this
35	35	state or a political subdivision of this state authorized by law to
36	36	appoint or employ peace officers.
37	37	(8) "Mail theft" means conduct constituting an offense
38	38	under Section 31.20, Penal Code.
39	39	(9) "Organized retail theft" means conduct
40	40	constituting an offense under Section 31.16, Penal Code.
41	41	(10) "Prosecutor" means a district attorney, a
42	42	criminal district attorney, or a county attorney who may prosecute
43	43	criminal offenses.
44	44	(11) [(5)] "Skimmer" means an electronic, mechanical,
45	45	or other device that may be used to unlawfully intercept electronic
46	46	communications or data to perpetrate card fraud.
47	47	(12) "Theft of service" means conduct constituting an
48	48	offense under Section 31.04, Penal Code.
49	49	(13) "Unauthorized acquisition or transfer of certain
50	50	financial information" means conduct constituting an offense under
51	51	Section 31.17, Penal Code.
52	52	Sec. 426.002 [2312.002]. RULES. The commission shall
53	53	adopt rules as necessary to implement this chapter.
54	54	SUBCHAPTER B. PURPOSE AND ADMINISTRATION; LAW ENFORCEMENT AGENCY
55	55	AND PROSECUTOR DUTIES
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 card fraud and organized retail theft[,
65	65	including through the use 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 card fraud
69	69	and organized retail theft.
70	70	Sec. 426.053 [2312.053]. OPERATION AGREEMENTS AUTHORIZED;
71	71	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 chief intelligence coordinator to supervise and manage the
78	78	operation of the center.
79	79	(b) The chief intelligence coordinator appointed under the
80	80	agreement required by Subsection (a)(2) may be a licensed peace
81	81	officer. The agreement must provide that the commission of a chief
82	82	intelligence coordinator who is a licensed peace officer will be
83	83	carried by the agency with which the department enters into the
84	84	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) detect skimmers;
100	100	(2) ensure an effective response if a skimmer is
101	101	found; [and]
102	102	(3) prevent card fraud; and
103	103	(4) detect and prevent organized retail theft.
104	104	(c) The center may:
105	105	(1) serve as a centralized collection point for
106	106	information related to card fraud and organized retail theft;
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 chief intelligence coordinator
121	121	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 card fraud
126	126	and organized retail theft 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 card fraud and organized retail theft; and
130	130	(B) a summary of card fraud and organized retail
131	131	theft statistics for the year in which the report is filed;
132	132	(3) a detailed plan of operation for combatting card
133	133	fraud and organized retail theft;
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	Sec. 426.056. DUTIES OF LAW ENFORCEMENT AGENCIES AND
141	141	PROSECUTORS. (a) A law enforcement agency or prosecutor that is
142	142	investigating or prosecuting organized retail theft, card fraud,
143	143	cargo theft, fraud involving gift cards and related to organized
144	144	retail theft, mail theft, theft of service, or unauthorized
145	145	acquisition or transfer of certain financial information, at the
146	146	request of the center, shall cooperate and assist the center in
147	147	collecting any statistical data or intelligence on the nature and
148	148	extent of those activities in the possession of the law enforcement
149	149	agency or prosecutor.
150	150	(b) A law enforcement agency or prosecutor may disclose
151	151	confidential information under Subsection (a) to the center, and
152	152	any disclosure of confidential information under this section does
153	153	not waive or affect the confidentiality of the information for
154	154	purposes of state or federal law or waive the right to assert
155	155	exceptions to required disclosure of the information in the future.
156	156	(c) Information collected under this section is excepted
157	157	from the requirements of Section 552.021.
158	158	SUBCHAPTER C. FINANCIAL PROVISIONS
159	159	Sec. 426.101 [2312.101]. FUNDING. The department may
160	160	solicit and accept gifts, grants, and other donations to fund,
161	161	administer, and carry out the purposes of the center, except that
162	162	the department may not solicit or accept a gift, grant, or other
163	163	donation from a license holder as defined by Section 2310.151,
164	164	Occupations Code.
165	165	Sec. 426.102 [2312.102]. AWARD OF GRANTS FOR FRAUD
166	166	DETERRENCE. (a) Subject to the availability of appropriated
167	167	money, the department may award grants for the purposes of
168	168	Subsection (b) [this chapter] by entering into a contract with each
169	169	grant recipient.
170	170	(b) A grant recipient may use grant money to:
171	171	(1) reduce card fraud by removing skimmers;
172	172	(2) purchase or upgrade fraud deterrence equipment,
173	173	including unique locking systems, cameras, and lights;
174	174	(3) provide training opportunities regarding
175	175	skimmers; and
176	176	(4) conduct public outreach regarding card fraud.
177	177	Sec. 426.103. AWARD OF GRANTS FOR ORGANIZED RETAIL THEFT
178	178	INVESTIGATION AND PROSECUTION. (a) From any funds available for
179	179	this purpose, the center by rule shall establish and implement
180	180	procedures to award grants that provide funding to eligible law
181	181	enforcement agencies and prosecuting attorneys to investigate and
182	182	prosecute organized retail theft.
183	183	(b) To be eligible for a grant, a recipient must be:
184	184	(1) a law enforcement agency that has established or
185	185	intends to establish a program or policy designed to prevent or
186	186	investigate organized retail theft; or
187	187	(2) a prosecuting attorney who:
188	188	(A) regularly prosecutes organized retail theft;
189	189	or
190	190	(B) has established or intends to establish a
191	191	program or policy focusing on the prosecution of organized retail
192	192	theft.
193	193	(c) The rules adopted under this section must:
194	194	(1) prioritize the award of grants based on a
195	195	demonstrated need for resources to prevent, investigate, or
196	196	prosecute organized retail theft in the jurisdiction of the law
197	197	enforcement agency or prosecuting attorney;
198	198	(2) include accountability measures for grant
199	199	recipients and mechanisms for enforcing the condition of any grant;
200	200	and
201	201	(3) require grant recipients to provide the center
202	202	with information regarding outcomes resulting from the use of grant
203	203	money.
204	204	SUBCHAPTER D. ORGANIZED RETAIL THEFT PREVENTION ADVISORY COMMITTEE
205	205	Sec. 426.151. DEFINITIONS. In this subchapter:
206	206	(1) "Advisory committee" means the organized retail
207	207	theft prevention advisory committee established under this
208	208	subchapter.
209	209	(2) "Qualifying theft and fraud scheme" means conduct
210	210	that constitutes:
211	211	(A) card fraud;
212	212	(B) cargo theft;
213	213	(C) fraud involving gift cards and related to
214	214	organized retail theft;
215	215	(D) mail theft;
216	216	(E) theft of service; or
217	217	(F) unauthorized acquisition or transfer of
218	218	certain financial information.
219	219	Sec. 426.152. ESTABLISHMENT OF ADVISORY COMMITTEE. The
220	220	center shall establish the organized retail theft prevention
221	221	advisory committee to develop policies, procedures, and
222	222	intelligence to assist in the prevention and prosecution of
223	223	organized retail theft and qualifying theft and fraud schemes.
224	224	Sec. 426.153. MEMBERSHIP. (a) The advisory committee
225	225	consists of 15 members appointed by the chief as follows:
226	226	(1) one representative of the center;
227	227	(2) two representatives of local law enforcement
228	228	agencies located in different municipalities, each with a
229	229	population of 500,000 or more;
230	230	(3) two representatives of local law enforcement
231	231	agencies located in different municipalities, each with a
232	232	population of 200,000 or more but less than 500,000;
233	233	(4) one representative of a local law enforcement
234	234	agency located in a municipality with a population of less than
235	235	200,000;
236	236	(5) one prosecutor whose jurisdiction includes a
237	237	county with a population of 500,000 or more;
238	238	(6) one prosecutor whose jurisdiction includes a
239	239	county with a population of 200,000 or more but less than 500,000;
240	240	(7) one retail investigator;
241	241	(8) three retailer representatives who specialize in
242	242	organized retail theft;
243	243	(9) one representative from an online retailer;
244	244	(10) one expert in fraud involving gift cards; and
245	245	(11) one expert in the unauthorized acquisition or
246	246	transfer of certain financial information.
247	247	(b) The center shall ensure that the members of the advisory
248	248	committee reflect the diverse geographic regions of the state.
249	249	(c) The presiding officer of the advisory committee is the
250	250	center's representative.
251	251	Sec. 426.154. MEETINGS. The advisory committee shall meet
252	252	at least quarterly and at the call of the presiding officer or the
253	253	center. An advisory committee meeting may be conducted virtually
254	254	through the Internet.
255	255	Sec. 426.155. ANNUAL EVALUATION OF MEMBERSHIP
256	256	PARTICIPATION. The center shall annually evaluate the input and
257	257	participation of members appointed under Section 426.153 and remove
258	258	members and appoint new members as necessary to ensure that each
259	259	member of the advisory committee collaborates and contributes to
260	260	the advisory committee.
261	261	Sec. 426.156. GENERAL DUTIES. The advisory committee
262	262	shall:
263	263	(1) advise the center and law enforcement agencies on
264	264	methods and procedures to:
265	265	(A) detect, deter, and prevent criminal activity
266	266	related to organized retail theft and qualifying theft and fraud
267	267	schemes; and
268	268	(B) develop best practices for conducting
269	269	investigations and responding to criminal activity related to
270	270	organized retail theft and related qualifying theft and fraud
271	271	schemes;
272	272	(2) collect and organize statistical data and
273	273	intelligence on the nature and extent of organized retail theft and
274	274	qualifying theft and fraud schemes, including:
275	275	(A) the number of investigations concerning,
276	276	arrests and prosecutions for, and convictions of the offense of
277	277	organized retail theft and any offense that is a qualifying theft
278	278	and fraud scheme;
279	279	(B) demographic information on persons who are
280	280	convicted of offenses described by Paragraph (A) and the merchants
281	281	and related persons who are the victims of those offenses; and
282	282	(C) intelligence on the methods and means used by
283	283	persons who engage in organized retail theft and qualifying theft
284	284	and fraud schemes; and
285	285	(3) collaborate with the Texas Commission on Law
286	286	Enforcement to develop and conduct training for peace officers on
287	287	the identification and prevention of organized retail theft and
288	288	qualifying theft and fraud schemes.
289	289	Sec. 426.157. REPORT. Not later than December 1 of each
290	290	year, the advisory committee shall file with the center a report
291	291	that must include a detailed account of its activities.
292	292	Sec. 426.158. INFORMATION EXCEPTED FROM REQUIRED PUBLIC
293	293	DISCLOSURE. The information collected under Section 426.156 is
294	294	excepted from the requirements of Section 552.021.
295	295	Sec. 426.159. APPLICABILITY OF OTHER LAW. Chapter 2110
296	296	does not apply to the size, composition, or duration of the advisory
297	297	committee or to the appointment of the advisory committee's
298	298	presiding officer.
299	299	SECTION 2. This Act takes effect September 1, 2025.