Texas 2025 - 89th Regular

Texas Senate Bill SB1499 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 1499
	1	+	By: Nichols, et al. S.B. No. 1499
	2	+	(Perez of Harris)
2	3
3	4
4	5
5	6
	7	+	A BILL TO BE ENTITLED
6	8		AN ACT
7	9		relating to the operations of the Financial Crimes Intelligence
8	10		Center.
9	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	12		SECTION 1. Chapter 2312, Occupations Code, is transferred
11	13		to Subtitle B, Title 4, Government Code, redesignated as Chapter
12	14		426, Government Code, and amended to read as follows:
13	15		CHAPTER 426 [2312]. FINANCIAL CRIMES INTELLIGENCE CENTER
14	16		SUBCHAPTER A. GENERAL PROVISIONS
15	17		Sec. 426.001 [2312.001]. DEFINITIONS. In this chapter:
16	18		(1) "Card fraud" means an act that constitutes the
17	19		offense of fraudulent use or possession of a credit card or debit
18	20		card under Section 32.315, Penal Code.
19	21		(2) "Center" means the financial crimes intelligence
20	22		center established under this chapter.
21	23		(2-a) "Check fraud" means conduct that constitutes an
22	24		offense under Section 32.21, Penal Code, with respect to a sight
23	25		order, as defined by Section 1.07, Penal Code.
24	26		(3) "Commission" means the Texas Commission of
25	27		Licensing and Regulation.
26	28		(4) "Department" means the Texas Department of
27	29		Licensing and Regulation.
28	30		(4-a) "Electronic fund transfer" means any transfer of
29	31		funds, other than a transaction originated by check, money order,
30	32		or similar paper instrument, that is initiated through an
31	33		electronic terminal, telephonic instrument, computer, or magnetic
32	34		tape and that orders, instructs, or authorizes a financial
33	35		institution to debit or credit an account.
34	36		(4-b) "Payment fraud" means:
35	37		(A) conduct constituting card fraud or check
36	38		fraud;
37	39		(B) sending an unauthorized payment order;
38	40		(C) initiating an electronic fund transfer
39	41		without the consent of the account holder; or
40	42		(D) any other act involving a fraudulent order
41	43		for payment of money, as defined by commission rule.
42	44		(5) "Skimmer" means an electronic, mechanical, or
43	45		other device that may be used to unlawfully intercept electronic
44	46		communications or data to perpetrate card fraud.
45	47		(6) "Unauthorized payment order" means a payment order
46	48		received by a receiving bank that is not:
47	49		(A) an authorized order of a customer identified
48	50		as sender under Section 4A.202(a), Business & Commerce Code; or
49	51		(B) effective as an order of the customer under
50	52		Section 4A.202(b) of that code.
51	53		Sec. 426.002 [2312.002]. RULES. The commission shall
52	54		adopt rules as necessary to implement this chapter.
53	55		SUBCHAPTER B. PURPOSE AND ADMINISTRATION
54	56		Sec. 426.051 [2312.051]. FINANCIAL CRIMES INTELLIGENCE
55	57		CENTER ESTABLISHED. The commission shall establish the center
56	58		within the department.
57	59		Sec. 426.052 [2312.052]. PURPOSES OF CENTER. The purposes
58	60		of the center are to:
59	61		(1) serve as the state's primary entity for the
60	62		planning, coordination, and integration of law enforcement
61	63		agencies and other governmental agencies that respond to criminal
62	64		activity related to payment [card] fraud, including through the use
63	65		of skimmers; and
64	66		(2) maximize the ability of the department, law
65	67		enforcement agencies, and other governmental agencies to detect,
66	68		prevent, and respond to criminal activities related to payment
67	69		[card] fraud.
68	70		Sec. 426.053 [2312.053]. OPERATION AGREEMENTS AUTHORIZED;
69	71		DIRECTOR [CHIEF INTELLIGENCE COORDINATOR]. (a) The department:
70	72		(1) may enter into agreements with law enforcement
71	73		agencies or other governmental agencies for the operation of the
72	74		center; and
73	75		(2) shall enter into an agreement with a law
74	76		enforcement agency or other governmental agency for the appointment
75	77		of a director [chief intelligence coordinator] to supervise and
76	78		manage the operation of the center.
77	79		(b) The director [chief intelligence coordinator] appointed
78	80		under the agreement required by Subsection (a)(2) may be a licensed
79	81		peace officer. The agreement must provide that the commission of a
80	82		director [chief intelligence coordinator] who is a licensed peace
81	83		officer will be carried by the agency with which the department
82	84		enters into the agreement under that subdivision.
83	85		(c) Information a law enforcement agency or other
84	86		governmental agency collects and maintains under an agreement
85	87		entered into with the department under this chapter is the
86	88		intellectual property of the center. On termination of the
87	89		agreement, the contracting agency shall transfer the information to
88	90		the department in accordance with the terms of the agreement.
89	91		Sec. 426.054 [2312.054]. POWERS AND DUTIES. (a) The
90	92		center may collaborate with federal, state, and local governmental
91	93		agencies to accomplish the purposes of the center.
92	94		(b) The center shall assist law enforcement agencies, other
93	95		governmental agencies, financial institutions, credit card
94	96		issuers, debit card issuers, payment card networks, institutions of
95	97		higher education, and merchants in their efforts to develop and
96	98		implement strategies to:
97	99		(1) prevent and respond to payment fraud;
98	100		(2) detect skimmers; and
99	101		(3) [(2)] ensure an effective response if a skimmer is
100	102		found[; and
101	103		[(3) prevent card fraud].
102	104		(c) The center may:
103	105		(1) serve as a centralized collection point for
104	106		information related to payment [card] fraud;
105	107		(2) provide training and educational opportunities to
106	108		law enforcement;
107	109		(3) provide outreach to the public; and
108	110		(4) release information to affected financial
109	111		institutions, credit card issuers, debit card issuers, payment card
110	112		networks, institutions of higher education, and merchants if the
111	113		center does not consider the information to be sensitive to law
112	114		enforcement.
113	115		(d) For purposes of Subsection (c)(4), information is
114	116		considered sensitive to law enforcement if the information could
115	117		cause harm to law enforcement activities or jeopardize an
116	118		investigation or operation if disclosed.
117	119		Sec. 426.055 [2312.055]. ANNUAL REPORT. (a) Not later
118	120		than December 1 of each year, the director [chief intelligence
119	121		coordinator] shall file a report with the department.
120	122		(b) The report must include:
121	123		(1) a plan of operation for the center and an estimate
122	124		of the amount of money necessary to implement that plan;
123	125		(2) an assessment of the current state of payment
124	126		[card] fraud in this state, including:
125	127		(A) an identification of the geographic
126	128		locations in this state that have the highest statistical
127	129		probability for payment [card] fraud; and
128	130		(B) a summary of payment [card] fraud statistics
129	131		for the year in which the report is filed;
130	132		(3) a detailed plan of operation for combatting
131	133		payment [card] fraud;
132	134		(4) a communications plan for outreach to law
133	135		enforcement agencies, financial institutions, credit card issuers,
134	136		debit card issuers, payment card networks, merchants, and the
135	137		public; and
136	138		(5) a list of expenditures made since the most recent
137	139		report was filed with the department.
138	140		SUBCHAPTER C. FINANCIAL PROVISIONS
139	141		Sec. 426.101 [2312.101]. FUNDING. The department may
140	142		solicit and accept gifts, grants, and other donations to fund,
141	143		administer, and carry out the purposes of the center, except that
142	144		the department may not solicit or accept a gift, grant, or other
143	145		donation from a license holder as defined by Section 2310.151,
144	146		Occupations Code.
145	147		Sec. 426.102 [2312.102]. AWARD OF GRANTS. (a) Subject to
146	148		the availability of appropriated money, the department may award
147	149		grants for the purposes of this chapter by entering into a contract
148	150		with each grant recipient.
149	151		(b) A grant recipient may use grant money to:
150	152		(1) reduce payment [card] fraud by removing skimmers;
151	153		(2) purchase or upgrade payment fraud deterrence
152	154		equipment, including unique locking systems, cameras, and lights;
153	155		(3) provide training opportunities regarding payment
154	156		fraud and skimmers; and
155	157		(4) conduct public outreach regarding payment [card]
156	158		fraud.
157	159		SECTION 2. As soon as practicable after the effective date
158	160		of this Act, the Texas Commission of Licensing and Regulation shall
159	161		adopt rules necessary to implement the changes in law made by this
160	162		Act to Chapter 426, Government Code, as transferred, redesignated,
161	163		and amended by this Act.
162	164		SECTION 3. This Act takes effect September 1, 2025.
163		-	______________________________ ______________________________
164		-	President of the Senate Speaker of the House
165		-	I hereby certify that S.B. No. 1499 passed the Senate on
166		-	March 27, 2025, by the following vote: Yeas 30, Nays 0.
167		-	______________________________
168		-	Secretary of the Senate
169		-	I hereby certify that S.B. No. 1499 passed the House on
170		-	April 29, 2025, by the following vote: Yeas 129, Nays 15, three
171		-	present not voting.
172		-	______________________________
173		-	Chief Clerk of the House
174		-	Approved:
175		-	______________________________
176		-	Date
177		-	______________________________
178		-	Governor