89R15796 JCG-F
By: Cook H.B. No. 4301
A BILL TO BE ENTITLED
AN ACT
relating to the financial crimes intelligence center, including
the establishment of an advisory committee and grants supporting
the investigation and prosecution of certain offenses.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 2312, Occupations Code, is transferred
to Subtitle B, Title 4, Government Code, redesignated as Chapter
426, Government Code, and amended to read as follows:
CHAPTER 426 [2312]. FINANCIAL CRIMES INTELLIGENCE CENTER
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 426.001 [2312.001]. DEFINITIONS. In this chapter:
(1) "Card fraud" means conduct constituting an [act
that constitutes the] offense [of fraudulent use or possession of a
credit card or debit card] under Section 32.315, Penal Code. The
term includes the commission of the offense by use of a skimmer.
(2) "Cargo theft" means conduct constituting an
offense under Section 31.18, Penal Code.
(3) [(2)] "Center" means the financial crimes
intelligence center established under this chapter.
(4) "Chief" means the chief intelligence coordinator
appointed to supervise and manage the operation of the center under
Section 426.053.
(5) [(3)] "Commission" means the Texas Commission of
Licensing and Regulation.
(6) [(4)] "Department" means the Texas Department of
Licensing and Regulation.
(7) "Law enforcement agency" means an agency of this
state or a political subdivision of this state authorized by law to
appoint or employ peace officers.
(8) "Mail theft" means conduct constituting an offense
under Section 31.20, Penal Code.
(9) "Organized retail theft" means conduct
constituting an offense under Section 31.16, Penal Code.
(10) "Prosecutor" means a district attorney, a
criminal district attorney, or a county attorney who may prosecute
criminal offenses.
(11) [(5)] "Skimmer" means an electronic, mechanical,
or other device that may be used to unlawfully intercept electronic
communications or data to perpetrate card fraud.
(12) "Theft of service" means conduct constituting an
offense under Section 31.04, Penal Code.
(13) "Unauthorized acquisition or transfer of certain
financial information" means conduct constituting an offense under
Section 31.17, Penal Code.
Sec. 426.002 [2312.002]. RULES. The commission shall
adopt rules as necessary to implement this chapter.
SUBCHAPTER B. PURPOSE AND ADMINISTRATION; LAW ENFORCEMENT AGENCY
AND PROSECUTOR DUTIES
Sec. 426.051 [2312.051]. FINANCIAL CRIMES INTELLIGENCE
CENTER ESTABLISHED. The commission shall establish the center
within the department.
Sec. 426.052 [2312.052]. PURPOSES OF CENTER. The purposes
of the center are to:
(1) serve as the state's primary entity for the
planning, coordination, and integration of law enforcement
agencies and other governmental agencies that respond to criminal
activity related to card fraud and organized retail theft[,
including through the use of skimmers]; and
(2) maximize the ability of the department, law
enforcement agencies, and other governmental agencies to detect,
prevent, and respond to criminal activities related to card fraud
and organized retail theft.
Sec. 426.053 [2312.053]. OPERATION AGREEMENTS AUTHORIZED;
CHIEF INTELLIGENCE COORDINATOR. (a) The department:
(1) may enter into agreements with law enforcement
agencies or other governmental agencies for the operation of the
center; and
(2) shall enter into an agreement with a law
enforcement agency or other governmental agency for the appointment
of a chief intelligence coordinator to supervise and manage the
operation of the center.
(b) The chief intelligence coordinator appointed under the
agreement required by Subsection (a)(2) may be a licensed peace
officer. The agreement must provide that the commission of a chief
intelligence coordinator who is a licensed peace officer will be
carried by the agency with which the department enters into the
agreement under that subdivision.
(c) Information a law enforcement agency or other
governmental agency collects and maintains under an agreement
entered into with the department under this chapter is the
intellectual property of the center. On termination of the
agreement, the contracting agency shall transfer the information to
the department in accordance with the terms of the agreement.
Sec. 426.054 [2312.054]. POWERS AND DUTIES. (a) The
center may collaborate with federal, state, and local governmental
agencies to accomplish the purposes of the center.
(b) The center shall assist law enforcement agencies, other
governmental agencies, financial institutions, credit card
issuers, debit card issuers, payment card networks, institutions of
higher education, and merchants in their efforts to develop and
implement strategies to:
(1) detect skimmers;
(2) ensure an effective response if a skimmer is
found; [and]
(3) prevent card fraud; and
(4) detect and prevent organized retail theft.
(c) The center may:
(1) serve as a centralized collection point for
information related to card fraud and organized retail theft;
(2) provide training and educational opportunities to
law enforcement;
(3) provide outreach to the public; and
(4) release information to affected financial
institutions, credit card issuers, debit card issuers, payment card
networks, institutions of higher education, and merchants if the
center does not consider the information to be sensitive to law
enforcement.
(d) For purposes of Subsection (c)(4), information is
considered sensitive to law enforcement if the information could
cause harm to law enforcement activities or jeopardize an
investigation or operation if disclosed.
Sec. 426.055 [2312.055]. ANNUAL REPORT. (a) Not later
than December 1 of each year, the chief intelligence coordinator
shall file a report with the department.
(b) The report must include:
(1) a plan of operation for the center and an estimate
of the amount of money necessary to implement that plan;
(2) an assessment of the current state of card fraud
and organized retail theft in this state, including:
(A) an identification of the geographic
locations in this state that have the highest statistical
probability for card fraud and organized retail theft; and
(B) a summary of card fraud and organized retail
theft statistics for the year in which the report is filed;
(3) a detailed plan of operation for combatting card
fraud and organized retail theft;
(4) a communications plan for outreach to law
enforcement agencies, financial institutions, credit card issuers,
debit card issuers, payment card networks, merchants, and the
public; and
(5) a list of expenditures made since the most recent
report was filed with the department.
Sec. 426.056. DUTIES OF LAW ENFORCEMENT AGENCIES AND
PROSECUTORS. (a) A law enforcement agency or prosecutor that is
investigating or prosecuting organized retail theft, card fraud,
cargo theft, fraud involving gift cards and related to organized
retail theft, mail theft, theft of service, or unauthorized
acquisition or transfer of certain financial information, at the
request of the center, shall cooperate and assist the center in
collecting any statistical data or intelligence on the nature and
extent of those activities in the possession of the law enforcement
agency or prosecutor.
(b) A law enforcement agency or prosecutor may disclose
confidential information under Subsection (a) to the center, and
any disclosure of confidential information under this section does
not waive or affect the confidentiality of the information for
purposes of state or federal law or waive the right to assert
exceptions to required disclosure of the information in the future.
(c) Information collected under this section is excepted
from the requirements of Section 552.021.
SUBCHAPTER C. FINANCIAL PROVISIONS
Sec. 426.101 [2312.101]. FUNDING. The department may
solicit and accept gifts, grants, and other donations to fund,
administer, and carry out the purposes of the center, except that
the department may not solicit or accept a gift, grant, or other
donation from a license holder as defined by Section 2310.151,
Occupations Code.
Sec. 426.102 [2312.102]. AWARD OF GRANTS FOR FRAUD
DETERRENCE. (a) Subject to the availability of appropriated
money, the department may award grants for the purposes of
Subsection (b) [this chapter] by entering into a contract with each
grant recipient.
(b) A grant recipient may use grant money to:
(1) reduce card fraud by removing skimmers;
(2) purchase or upgrade fraud deterrence equipment,
including unique locking systems, cameras, and lights;
(3) provide training opportunities regarding
skimmers; and
(4) conduct public outreach regarding card fraud.
Sec. 426.103. AWARD OF GRANTS FOR ORGANIZED RETAIL THEFT
INVESTIGATION AND PROSECUTION. (a) From any funds available for
this purpose, the center by rule shall establish and implement
procedures to award grants that provide funding to eligible law
enforcement agencies and prosecuting attorneys to investigate and
prosecute organized retail theft.
(b) To be eligible for a grant, a recipient must be:
(1) a law enforcement agency that has established or
intends to establish a program or policy designed to prevent or
investigate organized retail theft; or
(2) a prosecuting attorney who:
(A) regularly prosecutes organized retail theft;
or
(B) has established or intends to establish a
program or policy focusing on the prosecution of organized retail
theft.
(c) The rules adopted under this section must:
(1) prioritize the award of grants based on a
demonstrated need for resources to prevent, investigate, or
prosecute organized retail theft in the jurisdiction of the law
enforcement agency or prosecuting attorney;
(2) include accountability measures for grant
recipients and mechanisms for enforcing the condition of any grant;
and
(3) require grant recipients to provide the center
with information regarding outcomes resulting from the use of grant
money.
SUBCHAPTER D. ORGANIZED RETAIL THEFT PREVENTION ADVISORY COMMITTEE
Sec. 426.151. DEFINITIONS. In this subchapter:
(1) "Advisory committee" means the organized retail
theft prevention advisory committee established under this
subchapter.
(2) "Qualifying theft and fraud scheme" means conduct
that constitutes:
(A) card fraud;
(B) cargo theft;
(C) fraud involving gift cards and related to
organized retail theft;
(D) mail theft;
(E) theft of service; or
(F) unauthorized acquisition or transfer of
certain financial information.
Sec. 426.152. ESTABLISHMENT OF ADVISORY COMMITTEE. The
center shall establish the organized retail theft prevention
advisory committee to develop policies, procedures, and
intelligence to assist in the prevention and prosecution of
organized retail theft and qualifying theft and fraud schemes.
Sec. 426.153. MEMBERSHIP. (a) The advisory committee
consists of 15 members appointed by the chief as follows:
(1) one representative of the center;
(2) two representatives of local law enforcement
agencies located in different municipalities, each with a
population of 500,000 or more;
(3) two representatives of local law enforcement
agencies located in different municipalities, each with a
population of 200,000 or more but less than 500,000;
(4) one representative of a local law enforcement
agency located in a municipality with a population of less than
200,000;
(5) one prosecutor whose jurisdiction includes a
county with a population of 500,000 or more;
(6) one prosecutor whose jurisdiction includes a
county with a population of 200,000 or more but less than 500,000;
(7) one retail investigator;
(8) three retailer representatives who specialize in
organized retail theft;
(9) one representative from an online retailer;
(10) one expert in fraud involving gift cards; and
(11) one expert in the unauthorized acquisition or
transfer of certain financial information.
(b) The center shall ensure that the members of the advisory
committee reflect the diverse geographic regions of the state.
(c) The presiding officer of the advisory committee is the
center's representative.
Sec. 426.154. MEETINGS. The advisory committee shall meet
at least quarterly and at the call of the presiding officer or the
center. An advisory committee meeting may be conducted virtually
through the Internet.
Sec. 426.155. ANNUAL EVALUATION OF MEMBERSHIP
PARTICIPATION. The center shall annually evaluate the input and
participation of members appointed under Section 426.153 and remove
members and appoint new members as necessary to ensure that each
member of the advisory committee collaborates and contributes to
the advisory committee.
Sec. 426.156. GENERAL DUTIES. The advisory committee
shall:
(1) advise the center and law enforcement agencies on
methods and procedures to:
(A) detect, deter, and prevent criminal activity
related to organized retail theft and qualifying theft and fraud
schemes; and
(B) develop best practices for conducting
investigations and responding to criminal activity related to
organized retail theft and related qualifying theft and fraud
schemes;
(2) collect and organize statistical data and
intelligence on the nature and extent of organized retail theft and
qualifying theft and fraud schemes, including:
(A) the number of investigations concerning,
arrests and prosecutions for, and convictions of the offense of
organized retail theft and any offense that is a qualifying theft
and fraud scheme;
(B) demographic information on persons who are
convicted of offenses described by Paragraph (A) and the merchants
and related persons who are the victims of those offenses; and
(C) intelligence on the methods and means used by
persons who engage in organized retail theft and qualifying theft
and fraud schemes; and
(3) collaborate with the Texas Commission on Law
Enforcement to develop and conduct training for peace officers on
the identification and prevention of organized retail theft and
qualifying theft and fraud schemes.
Sec. 426.157. REPORT. Not later than December 1 of each
year, the advisory committee shall file with the center a report
that must include a detailed account of its activities.
Sec. 426.158. INFORMATION EXCEPTED FROM REQUIRED PUBLIC
DISCLOSURE. The information collected under Section 426.156 is
excepted from the requirements of Section 552.021.
Sec. 426.159. APPLICABILITY OF OTHER LAW. Chapter 2110
does not apply to the size, composition, or duration of the advisory
committee or to the appointment of the advisory committee's
presiding officer.
SECTION 2. This Act takes effect September 1, 2025.