Texas 2025 - 89th Regular

Texas House Bill HB4853 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~89R23320~~ BCH-F
	1	+	89R9338 BCH-F
2	2		By: Perez of Harris H.B. No. 4853
3		-	Substitute the following for H.B. No. 4853:
4		-	By: Lambert C.S.H.B. No. 4853
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6	4
7	5
8	6
9	7		A BILL TO BE ENTITLED
10	8		AN ACT
11	9		relating to skimmers on electronic terminals; authorizing a civil
12	10		penalty; creating criminal offenses.
13	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	12		SECTION 1. Title 12, Business & Commerce Code, is amended by
15	13		adding Chapter 607A to read as follows:
16	14		CHAPTER 607A. PAYMENT CARD SKIMMERS ON ELECTRONIC TERMINALS
17	15		SUBCHAPTER A. GENERAL PROVISIONS
18	16		Sec. 607A.001. DEFINITIONS. In this chapter:
19	17		(1) "Automated teller machine" has the meaning
20	18		assigned by Section 31.03, Penal Code.
21	19		(2) "Center" means the financial crimes intelligence
22	20		center established under Chapter 2312, Occupations Code.
23	21		(3) "Electronic terminal" means an electronic device,
24	22		other than a telephone operated by a consumer, through which a
25	23		consumer may initiate an electronic funds transfer. The term
26		-	includes a point-of-sale terminal, virtual currency terminal,
27		-	automated teller machine, and cash dispensing machine.
	24	+	includes a point-of-sale terminal, motor fuel unattended payment
	25	+	terminal, virtual currency terminal, automated teller machine, and
	26	+	cash dispensing machine.
28	27		(4) "Financial institution" has the meaning assigned
29	28		by Section 277.001, Finance Code.
30	29		(5) "Institution of higher education" has the meaning
31	30		assigned by Section 61.003, Education Code.
32	31		(6) "Merchant" has the meaning assigned by Section
33	32		2.104.
34	33		(7) "Payment card" has the meaning assigned by Section
35	34		522.001.
36	35		(8) "Payment card issuer" means a lender, including a
37	36		financial institution, or a merchant that receives applications and
38	37		issues payment cards to individuals.
39	38		(9) "Payment card network" means an entity that
40	39		directly, or through a licensed member, processor, or agent,
41	40		provides the proprietary services, infrastructure, and software
42	41		that:
43	42		(A) route information to conduct debit card or
44	43		credit card transaction authorization, clearance, and settlement;
45	44		and
46	45		(B) the entity uses to accept as a form of payment
47	46		a brand of debit card, credit card, or other device to be used to
48	47		carry out debit or credit transactions.
49	48		(10) "Service company" and "service technician" have
50	49		the meanings assigned by Section 2310.151, Occupations Code.
51	50		(11) "Skimmer" means a wire or electronic device
52	51		capable of unlawfully intercepting electronic communications or
53	52		data to perpetrate fraud.
54	53		(12) "Virtual currency" means an intangible
55	54		electronic medium of exchange, unit of account, or store of value.
56	55		Sec. 607A.002. ADMINISTRATION AND ENFORCEMENT OF CHAPTER.
57	56		The center shall administer and enforce this chapter.
58	57		Sec. 607A.003. RULES. The center shall adopt rules for
59	58		administering this chapter.
60	59		SUBCHAPTER B. DUTIES FOR USE OF CERTAIN ELECTRONIC TERMINALS
61	60		Sec. 607A.051. REQUIRED NOTICE OF SKIMMER DISCOVERY. (a)
62	61		If a service technician discovers a skimmer in or on an electronic
63	62		terminal, the service technician or service company that employs
64	63		the technician shall notify the center and the merchant of the
65	64		skimmer in the manner prescribed by center rule.
66	65		(b) If a merchant discovers a skimmer in or on an electronic
67	66		terminal or is notified of the presence of a skimmer, the merchant
68	67		shall, in the manner prescribed by center rule:
69	68		(1) disable, or cause to be disabled, the electronic
70	69		terminal on which the skimmer was discovered;
71	70		(2) notify a law enforcement agency and the center
72	71		that a skimmer has been detected; and
73	72		(3) take appropriate measures to protect the
74	73		electronic terminal from tampering until the center or law
75	74		enforcement agency arrives and the skimmer is removed.
76	75		Sec. 607A.052. REPORT TO CENTER. The center may accept a
77	76		report of a suspected skimmer from any interested person,
78	77		including:
79	78		(1) a law enforcement agency;
80	79		(2) a financial institution;
81	80		(3) a payment card issuer;
82	81		(4) a service technician or service company;
83	82		(5) a member of the public; and
84	83		(6) a payment card network.
85	84		Sec. 607A.053. INVESTIGATION OF SKIMMER REPORT. (a) On
86	85		receipt of a report under Section 607A.051 or 607A.052, the center
87	86		may conduct an inspection for the presence of suspected skimmers.
88	87		(b) The center shall coordinate with law enforcement
89	88		agencies in conducting an investigation of the report.
90	89		(c) If the skimmer is reported to be located on an
91	90		electronic terminal, the center may inspect, directly or in
92	91		coordination with a law enforcement agency, the electronic terminal
93	92		that is the subject of the report and any other electronic terminal
94		-	located at the same place of business.
	93	+	located at the same place of business if the electronic terminal is
	94	+	not affiliated with a federally insured financial institution.
95	95		(d) A merchant shall cooperate with the center or law
96	96		enforcement agency during an investigation of a skimmer discovered
97	97		or reported at the merchant's place of business and allow the
98	98		inspection and alteration of an electronic terminal at the place of
99	99		business as necessary.
100	100		Sec. 607A.054. CONFIDENTIALITY. (a) Except as otherwise
101	101		provided by this section, information is confidential and not
102	102		subject to disclosure under Chapter 552, Government Code, if the
103	103		information is:
104	104		(1) from a report received by the center under Section
105	105		607A.051 or 607A.052; or
106	106		(2) prepared or compiled by the center in connection
107	107		with the report or an investigation conducted under this
108	108		subchapter.
109	109		(b) Information described by Subsection (a) may be
110	110		disclosed to:
111	111		(1) an institution of higher education;
112	112		(2) a law enforcement agency;
113	113		(3) a payment card issuer, a financial institution
114	114		that is not a payment card issuer, or a payment card network that
115	115		may be impacted by the use of a skimmer on an electronic terminal;
116	116		(4) another person if the disclosure of the
117	117		information is authorized or required by other law or court order;
118	118		(5) a trade association representing a financial
119	119		institution;
120	120		(6) a center contractor or other agent; or
121	121		(7) the Texas Department of Banking.
122	122		(c) The disclosure of information under Subsection (b) is
123	123		not a voluntary disclosure for purposes of Section 552.007,
124	124		Government Code.
125	125		(d) On the dismissal or final resolution of a report by the
126	126		center, information described by Subsection (a) is subject to
127	127		disclosure under Chapter 552, Government Code, unless the
128	128		information is subject to Section 31.301, Finance Code, or can be
129	129		classified as confidential information under applicable rules.
130	130		(e) Notwithstanding Subsection (a), a law enforcement
131	131		agency or the center:
132	132		(1) subject to Subdivision (2), may disclose to the
133	133		public information made confidential by that subdivision if the law
134	134		enforcement agency or the chief intelligence coordinator for the
135	135		center determines the disclosure of the information furthers a law
136	136		enforcement purpose; and
137	137		(2) may not disclose to the public the identity of a
138	138		person who submits a report of a suspected skimmer to the center
139	139		under Section 607A.051 or 607A.052.
140	140		SUBCHAPTER C. ENFORCEMENT
141	141		Sec. 607A.101. CIVIL PENALTY. (a) A person who violates
142	142		this chapter or a rule adopted under this chapter is liable to this
143	143		state for a civil penalty. A civil penalty assessed under this
144	144		subsection may not exceed $5,000 per day for each violation.
145	145		(b) The attorney general may bring an action to collect a
146	146		civil penalty under this section.
147	147		(c) An action filed under this section must be filed in a
148	148		district court in Travis County.
149	149		(d) The attorney general and the department may recover
150	150		reasonable expenses incurred in obtaining injunctive relief under
151	151		this section, including court costs, reasonable attorney's fees,
152	152		investigative costs, witness fees, and deposition expenses.
153	153		Sec. 607A.102. CRIMINAL OFFENSES. (a) A person commits an
154	154		offense if the person refuses to allow an inspection of an
155	155		electronic terminal at the merchant's place of business in
156	156		violation of Section 607A.053. An offense under this subsection is
157	157		a Class C misdemeanor.
158	158		(b) A person commits an offense if the person negligently or
159	159		recklessly disposes of a skimmer that was installed on an
160	160		electronic terminal by another person. An offense under this
161	161		subsection is a Class B misdemeanor.
162	162		(c) A person commits an offense if, knowing that an
163	163		investigation is ongoing or that a criminal proceeding has been
164	164		commenced and is pending, the person disposes of a skimmer
165	165		installed on an electronic terminal by another person. An offense
166	166		under this subsection is a felony of the third degree.
167	167		SECTION 2. This Act takes effect immediately if it receives
168	168		a vote of two-thirds of all the members elected to each house, as
169	169		provided by Section 39, Article III, Texas Constitution. If this
170	170		Act does not receive the vote necessary for immediate effect, this
171	171		Act takes effect September 1, 2025.