Texas 2025 - 89th Regular

Texas Senate Bill SB2371

Filed

3/12/25

Out of Senate Committee

4/16/25

Voted on by Senate

4/29/25

Out of House Committee

5/7/25

Voted on by House

5/10/25

Governor Action

5/27/25

Bill Becomes Law

Caption

Relating to skimmers on electronic terminals; authorizing a civil penalty; creating criminal offenses.

Impact

Upon enactment, SB2371 will amend Title 12 of the Business & Commerce Code by adding Chapter 607A, focusing specifically on payment card skimmers and their regulation. The Texas Commission of Licensing and Regulation will be responsible for the administration and enforcement of this chapter. This will introduce new legal standards for electronic terminals, placing greater accountability on merchants and service companies to report and manage skimmers effectively, thereby potentially enhancing consumer safety and trust in electronic financial transactions.

Summary

SB2371 is a legislative bill designed to address the growing issue of skimmers on electronic terminals, which are devices used to intercept electronic communications or data to commit fraud. The bill establishes new criminal offenses related to the use and maintenance of these skimmers and authorizes civil penalties for violations. By defining key terms and outlining administrative procedures, the bill aims to create a comprehensive framework for enforcement against individuals and businesses that operate such fraudulent devices.

Sentiment

The general sentiment around SB2371 appears to be supportive, particularly from consumer rights advocates and law enforcement entities who view the bill as a necessary step to combat electronic fraud. By establishing clear penalties and rules for reporting skimmer incidents, the bill is expected to strengthen legal responses to such fraudulent activities. However, there may be concerns from some businesses regarding the compliance burden and potential liabilities introduced by the bill.

Contention

Notable points of contention associated with SB2371 may center around the balance between regulatory enforcement and the operational flexibility of businesses. Critics could argue that the introduction of civil penalties may disproportionately affect smaller merchants who might struggle to comply with the new requirements. There is also the potential argument about the adequacy of current protections versus the need for enhanced measures, leading to debates about the effectiveness of legislative solutions in addressing evolving fraud techniques.

Texas Constitutional Statutes Affected

Occupations Code

Chapter 2312. Financial Crimes Intelligence Center
- Section: New Section
- Section: New Section

Chapter 2310. Motor Fuel Metering And Quality
- Section: 151
- Section: 151

Finance Code

Chapter 277. Business Checking Accounts
- Section: 001
- Section: 001
- Section: 001

Education Code

Chapter 61. Texas Higher Education Coordinating Board
- Section: New Section
- Section: New Section
- Section: New Section

Government Code

Chapter 552. Public Information
- Section: New Section
- Section: New Section

Penal Code

Chapter 31. Theft
- Section: New Section

Companion Bills

TX HB4853

Identical Relating to skimmers on electronic terminals; authorizing a civil penalty; creating criminal offenses.

Previously Filed As

TX HB3395

Relating to the charging of swipe fees on certain electronic payment transactions; authorizing a civil penalty.

TX SB1541

Relating to the charging of swipe fees on certain electronic payment transactions; authorizing a civil penalty.

TX SB895

Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.

TX HB4635

Relating to organized crime, racketeering activities, and collection of unlawful debts; providing a civil penalty; creating criminal offenses.

TX SB1788

Relating to organized crime, racketeering activities, and collection of unlawful debts; providing a civil penalty; creating criminal offenses.

TX HB1402

Relating to the criminal penalties for certain criminal offenses.

TX HB1942

Relating to the regulation of sports wagering; requiring occupational permits; authorizing fees; imposing a tax; decriminalizing wagering on certain sports events; creating criminal offenses; providing administrative penalties.

TX SB715

TX HB4129

Relating to prohibiting certain erotic performances; creating a criminal offense; authorizing a civil penalty.

TX HB2843

Relating to the authorization, licensing, and regulation of casino gaming and sports wagering in this state, to the creation, powers, and duties of the Texas Gaming Commission, to the support of the horse racing industry and reform of horse racing and greyhound racing, and to other provisions related to gambling; imposing and authorizing administrative and civil penalties; imposing taxes; imposing and authorizing fees; requiring occupational licenses; creating criminal offenses.