Texas 2025 - 89th Regular

Texas Senate Bill SB2371 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Nichols, Campbell S.B. No. 2371
2		-	West
	1	+	By: Nichols S.B. No. 2371
	2	+	(In the Senate - Filed March 12, 2025; March 25, 2025, read
	3	+	first time and referred to Committee on Criminal Justice;
	4	+	April 16, 2025, reported adversely, with favorable Committee
	5	+	Substitute by the following vote: Yeas 7, Nays 0; April 16, 2025,
	6	+	sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR S.B. No. 2371 By: Flores
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7	13		A BILL TO BE ENTITLED
8	14		AN ACT
9	15		relating to skimmers on electronic terminals; authorizing a civil
10	16		penalty; creating criminal offenses.
11	17		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	18		SECTION 1. Title 12, Business & Commerce Code, is amended by
13	19		adding Chapter 607A to read as follows:
14	20		CHAPTER 607A. PAYMENT CARD SKIMMERS ON ELECTRONIC TERMINALS
15	21		SUBCHAPTER A. GENERAL PROVISIONS
16	22		Sec. 607A.001. DEFINITIONS. In this chapter:
17	23		(1) "Automated teller machine" has the meaning
18	24		assigned by Section 31.03, Penal Code.
19	25		(2) "Center" means the financial crimes intelligence
20	26		center established under Chapter 2312, Occupations Code.
21	27		(3) "Electronic terminal" means an electronic device,
22	28		other than a telephone operated by a consumer, through which a
23	29		consumer may initiate an electronic funds transfer. The term
24	30		includes a point-of-sale terminal, virtual currency terminal,
25	31		automated teller machine, and cash dispensing machine.
26	32		(4) "Financial institution" has the meaning assigned
27	33		by Section 277.001, Finance Code.
28	34		(5) "Institution of higher education" has the meaning
29	35		assigned by Section 61.003, Education Code.
30	36		(6) "Merchant" has the meaning assigned by Section
31	37		2.104.
32	38		(7) "Payment card" has the meaning assigned by Section
33	39		522.001.
34	40		(8) "Payment card issuer" means a lender, including a
35	41		financial institution, or a merchant that receives applications and
36	42		issues payment cards to individuals.
37	43		(9) "Payment card network" means an entity that
38	44		directly, or through a licensed member, processor, or agent,
39	45		provides the proprietary services, infrastructure, and software
40	46		that:
41	47		(A) route information to conduct debit card or
42	48		credit card transaction authorization, clearance, and settlement;
43	49		and
44	50		(B) the entity uses to accept as a form of payment
45	51		a brand of debit card, credit card, or other device to be used to
46	52		carry out debit or credit transactions.
47	53		(10) "Service company" and "service technician" have
48	54		the meanings assigned by Section 2310.151, Occupations Code.
49	55		(11) "Skimmer" means a wire or electronic device
50	56		capable of unlawfully intercepting electronic communications or
51	57		data to perpetrate fraud.
52	58		(12) "Virtual currency" means an intangible
53	59		electronic medium of exchange, unit of account, or store of value.
54	60		Sec. 607A.002. ADMINISTRATION AND ENFORCEMENT OF CHAPTER.
55	61		The center shall administer and enforce this chapter.
56	62		Sec. 607A.003. RULES. The center shall adopt rules for
57	63		administering this chapter.
58	64		SUBCHAPTER B. DUTIES FOR USE OF CERTAIN ELECTRONIC TERMINALS
59	65		Sec. 607A.051. REQUIRED NOTICE OF SKIMMER DISCOVERY. (a)
60	66		If a service technician discovers a skimmer in or on an electronic
61	67		terminal, the service technician or service company that employs
62	68		the technician shall notify the center and the merchant of the
63	69		skimmer in the manner prescribed by center rule.
64	70		(b) If a merchant discovers a skimmer in or on an electronic
65	71		terminal or is notified of the presence of a skimmer, the merchant
66	72		shall, in the manner prescribed by center rule:
67	73		(1) disable, or cause to be disabled, the electronic
68	74		terminal on which the skimmer was discovered;
69	75		(2) notify a law enforcement agency and the center
70	76		that a skimmer has been detected; and
71	77		(3) take appropriate measures to protect the
72	78		electronic terminal from tampering until the center or law
73	79		enforcement agency arrives and the skimmer is removed.
74	80		Sec. 607A.052. REPORT TO CENTER. The center may accept a
75	81		report of a suspected skimmer from any interested person,
76	82		including:
77	83		(1) a law enforcement agency;
78	84		(2) a financial institution;
79	85		(3) a payment card issuer;
80	86		(4) a service technician or service company;
81	87		(5) a member of the public; and
82	88		(6) a payment card network.
83	89		Sec. 607A.053. INVESTIGATION OF SKIMMER REPORT. (a) On
84	90		receipt of a report under Section 607A.051 or 607A.052, the center
85	91		may conduct an inspection for the presence of suspected skimmers.
86	92		(b) The center shall coordinate with law enforcement
87	93		agencies in conducting an investigation of the report.
88	94		(c) If the skimmer is reported to be located on an
89	95		electronic terminal, the center may inspect, directly or in
90	96		coordination with a law enforcement agency, the electronic terminal
91	97		that is the subject of the report and any other electronic terminal
92	98		located at the same place of business.
93	99		(d) A merchant shall cooperate with the center or law
94	100		enforcement agency during an investigation of a skimmer discovered
95	101		or reported at the merchant's place of business and allow the
96	102		inspection and alteration of an electronic terminal at the place of
97	103		business as necessary.
98	104		Sec. 607A.054. CONFIDENTIALITY. (a) Except as otherwise
99	105		provided by this section, information is confidential and not
100	106		subject to disclosure under Chapter 552, Government Code, if the
101	107		information is:
102	108		(1) from a report received by the center under Section
103	109		607A.051 or 607A.052; or
104	110		(2) prepared or compiled by the center in connection
105	111		with the report or an investigation conducted under this
106	112		subchapter.
107	113		(b) Information described by Subsection (a) may be
108	114		disclosed to:
109	115		(1) an institution of higher education;
110	116		(2) a law enforcement agency;
111	117		(3) a payment card issuer, a financial institution
112	118		that is not a payment card issuer, or a payment card network that
113	119		may be impacted by the use of a skimmer on an electronic terminal;
114	120		(4) another person if the disclosure of the
115	121		information is authorized or required by other law or court order;
116	122		(5) a trade association representing a financial
117	123		institution;
118	124		(6) a center contractor or other agent; or
119	125		(7) the Texas Department of Banking.
120	126		(c) The disclosure of information under Subsection (b) is
121	127		not a voluntary disclosure for purposes of Section 552.007,
122	128		Government Code.
123	129		(d) On the dismissal or final resolution of a report by the
124	130		center, information described by Subsection (a) is subject to
125	131		disclosure under Chapter 552, Government Code, unless the
126	132		information is subject to Section 31.301, Finance Code, or can be
127	133		classified as confidential information under applicable rules.
128	134		(e) Notwithstanding Subsection (a), a law enforcement
129	135		agency or the center:
130	136		(1) subject to Subdivision (2), may disclose to the
131	137		public information made confidential by that subdivision if the law
132	138		enforcement agency or the chief intelligence coordinator for the
133	139		center determines the disclosure of the information furthers a law
134	140		enforcement purpose; and
135	141		(2) may not disclose to the public the identity of a
136	142		person who submits a report of a suspected skimmer to the center
137	143		under Section 607A.051 or 607A.052.
138	144		SUBCHAPTER C. ENFORCEMENT
139	145		Sec. 607A.101. CIVIL PENALTY. (a) A person who violates
140	146		this chapter or a rule adopted under this chapter is liable to this
141	147		state for a civil penalty. A civil penalty assessed under this
142	148		subsection may not exceed $5,000 per day for each violation.
143	149		(b) The attorney general may bring an action to collect a
144	150		civil penalty under this section.
145	151		(c) An action filed under this section must be filed in a
146	152		district court in Travis County.
147	153		(d) The attorney general and the department may recover
148	154		reasonable expenses incurred in obtaining injunctive relief under
149	155		this section, including court costs, reasonable attorney's fees,
150	156		investigative costs, witness fees, and deposition expenses.
151	157		Sec. 607A.102. CRIMINAL OFFENSES. (a) A person commits an
152	158		offense if the person refuses to allow an inspection of an
153	159		electronic terminal at the merchant's place of business in
154	160		violation of Section 607A.053. An offense under this subsection is
155	161		a Class C misdemeanor.
156	162		(b) A person commits an offense if the person negligently or
157	163		recklessly disposes of a skimmer that was installed on an
158	164		electronic terminal by another person. An offense under this
159	165		subsection is a Class B misdemeanor.
160	166		(c) A person commits an offense if, knowing that an
161	167		investigation is ongoing or that a criminal proceeding has been
162	168		commenced and is pending, the person disposes of a skimmer
163	169		installed on an electronic terminal by another person. An offense
164	170		under this subsection is a felony of the third degree.
165	171		SECTION 2. This Act takes effect immediately if it receives
166	172		a vote of two-thirds of all the members elected to each house, as
167	173		provided by Section 39, Article III, Texas Constitution. If this
168	174		Act does not receive the vote necessary for immediate effect, this
169	175		Act takes effect September 1, 2025.
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