Texas 2025 - 89th Regular

Texas Senate Bill SB1491 Compare Versions

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Old	New	Differences
1	1	89R13523 JCG-F
2	2	By: Zaffirini S.B. No. 1491
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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	(3) "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	(4) [(3)] "Commission" means the Texas Commission of
27	27	Licensing and Regulation.
28	28	(5) [(4)] "Department" means the Texas Department of
29	29	Licensing and Regulation.
30	30	(6) "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	(7) "Motor fuel manipulation device" means a mechanism
37	37	manufactured, assembled, or adapted to manipulate or alter a motor
38	38	fuel metering device or a motor fuel unattended payment terminal
39	39	for an unlawful purpose.
40	40	(8) "Motor fuel theft" means an act that:
41	41	(A) constitutes an offense under Section 31.03,
42	42	Penal Code; and
43	43	(B) qualifies for an affirmative finding of motor
44	44	fuel theft under Article 42.019, Code of Criminal Procedure.
45	45	(9) "Payment fraud" means:
46	46	(A) conduct constituting card fraud or check
47	47	fraud;
48	48	(B) sending an unauthorized payment order;
49	49	(C) initiating an electronic fund transfer
50	50	without the consent of the account holder; or
51	51	(D) any other act involving a fraudulent order
52	52	for payment of money, as defined by commission rule.
53	53	(10) [(5)] "Skimmer" means an electronic, mechanical,
54	54	or other device that may be used to unlawfully intercept electronic
55	55	communications or data to perpetrate card fraud. The term includes
56	56	a credit card shimmer.
57	57	(11) "Unauthorized payment order" means a payment
58	58	order received by a receiving bank that is not:
59	59	(A) an authorized order of a customer identified
60	60	as sender under Section 4A.202(a), Business & Commerce Code; or
61	61	(B) effective as an order of the customer under
62	62	Section 4A.202(b) of that code.
63	63	Sec. 426.002 [2312.002]. RULES. The commission shall
64	64	adopt rules as necessary to implement this chapter.
65	65	SUBCHAPTER B. PURPOSE AND ADMINISTRATION
66	66	Sec. 426.051 [2312.051]. FINANCIAL CRIMES INTELLIGENCE
67	67	CENTER ESTABLISHED. The commission shall establish the center
68	68	within the department.
69	69	Sec. 426.052 [2312.052]. PURPOSES OF CENTER. The purposes
70	70	of the center are to:
71	71	(1) serve as the state's primary entity for the
72	72	planning, coordination, and integration of law enforcement
73	73	agencies and other governmental agencies that respond to criminal
74	74	activity related to motor fuel theft and payment [card] fraud,
75	75	including through the use of skimmers; and
76	76	(2) maximize the ability of the department, law
77	77	enforcement agencies, and other governmental agencies to detect,
78	78	prevent, and respond to criminal activities related to motor fuel
79	79	theft and payment [card] fraud.
80	80	Sec. 426.053 [2312.053]. OPERATION AGREEMENTS AUTHORIZED;
81	81	DIRECTOR [CHIEF INTELLIGENCE COORDINATOR]. (a) The department:
82	82	(1) may enter into agreements with law enforcement
83	83	agencies or other governmental agencies for the operation of the
84	84	center; and
85	85	(2) shall enter into an agreement with a law
86	86	enforcement agency or other governmental agency for the appointment
87	87	of a director [chief intelligence coordinator] to supervise and
88	88	manage the operation of the center.
89	89	(b) The director [chief intelligence coordinator] appointed
90	90	under the agreement required by Subsection (a)(2) may be a licensed
91	91	peace officer. The agreement must provide that the commission of a
92	92	director [chief intelligence coordinator] who is a licensed peace
93	93	officer will be carried by the agency with which the department
94	94	enters into the agreement under that subdivision.
95	95	(c) Information a law enforcement agency or other
96	96	governmental agency collects and maintains under an agreement
97	97	entered into with the department under this chapter is the
98	98	intellectual property of the center. On termination of the
99	99	agreement, the contracting agency shall transfer the information to
100	100	the department in accordance with the terms of the agreement.
101	101	Sec. 426.054 [2312.054]. POWERS AND DUTIES. (a) The
102	102	center may collaborate with federal, state, and local governmental
103	103	agencies to accomplish the purposes of the center.
104	104	(b) The center shall assist law enforcement agencies, other
105	105	governmental agencies, financial institutions, credit card
106	106	issuers, debit card issuers, payment card networks, institutions of
107	107	higher education, and merchants in their efforts to develop and
108	108	implement strategies to:
109	109	(1) prevent and respond to motor fuel theft and
110	110	payment fraud;
111	111	(2) detect skimmers and motor fuel manipulation
112	112	devices; and
113	113	(3) [(2)] ensure an effective response if a skimmer or
114	114	motor fuel manipulation device is found[; and
115	115	[(3) prevent card fraud].
116	116	(b-1) On request of a law enforcement or other governmental
117	117	agency, the center may provide assistance to that agency regarding
118	118	any matter within the center's expertise.
119	119	(c) The center may:
120	120	(1) serve as a centralized collection point for
121	121	information related to motor fuel theft and payment [card] fraud;
122	122	(2) provide training and educational opportunities to
123	123	law enforcement;
124	124	(3) provide outreach to the public; and
125	125	(4) release information to affected financial
126	126	institutions, credit card issuers, debit card issuers, payment card
127	127	networks, institutions of higher education, and merchants if the
128	128	center does not consider the information to be sensitive to law
129	129	enforcement.
130	130	(d) For purposes of Subsection (c)(4), information is
131	131	considered sensitive to law enforcement if the information could
132	132	cause harm to law enforcement activities or jeopardize an
133	133	investigation or operation if disclosed.
134	134	Sec. 426.055 [2312.055]. ANNUAL REPORT. (a) Not later
135	135	than December 1 of each year, the director [chief intelligence
136	136	coordinator] shall file a report with the department.
137	137	(b) The report must include:
138	138	(1) a plan of operation for the center and an estimate
139	139	of the amount of money necessary to implement that plan;
140	140	(2) an assessment of the current state of motor fuel
141	141	theft and payment [card] fraud in this state, including:
142	142	(A) an identification of the geographic
143	143	locations in this state that have the highest statistical
144	144	probability for motor fuel theft and payment [card] fraud; and
145	145	(B) a summary of motor fuel theft and payment
146	146	[card] fraud statistics for the year in which the report is filed;
147	147	(3) a detailed plan of operation for combatting motor
148	148	fuel theft and payment [card] fraud;
149	149	(4) a communications plan for outreach to law
150	150	enforcement agencies, financial institutions, credit card issuers,
151	151	debit card issuers, payment card networks, merchants, and the
152	152	public; and
153	153	(5) a list of expenditures made since the most recent
154	154	report was filed with the department.
155	155	SUBCHAPTER C. FINANCIAL PROVISIONS
156	156	Sec. 426.101 [2312.101]. FUNDING. The department may
157	157	solicit and accept gifts, grants, and other donations to fund,
158	158	administer, and carry out the purposes of the center, except that
159	159	the department may not solicit or accept a gift, grant, or other
160	160	donation from a license holder as defined by Section 2310.151,
161	161	Occupations Code.
162	162	Sec. 426.102 [2312.102]. AWARD OF GRANTS. (a) Subject to
163	163	the availability of appropriated money, the department may award
164	164	grants for the purposes of this chapter by entering into a contract
165	165	with each grant recipient.
166	166	(b) A grant recipient may use grant money to:
167	167	(1) reduce payment [card] fraud by removing skimmers;
168	168	(2) purchase or upgrade payment fraud deterrence
169	169	equipment, including unique locking systems, cameras, and lights;
170	170	(3) provide training opportunities regarding payment
171	171	fraud and skimmers; and
172	172	(4) conduct public outreach regarding motor fuel theft
173	173	and payment [card] fraud.
174	174	SECTION 2. As soon as practicable after the effective date
175	175	of this Act, the Texas Commission of Licensing and Regulation shall
176	176	adopt rules necessary to implement the changes in law made by this
177	177	Act to Chapter 426, Government Code, as transferred, redesignated,
178	178	and amended by this Act.
179	179	SECTION 3. This Act takes effect September 1, 2025.