89R5769 JDK-D
By: Nichols S.B. No. 2372
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the criminal offense of fraudulent use,
possession, or tampering with gift cards or gift card data.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 32, Penal Code, is amended
by adding Section 32.316 to read as follows:
Sec. 32.316. FRAUDULENT USE, POSSESSION, OR TAMPERING WITH
GIFT CARDS OR GIFT CARD DATA. (a) In this section:
(1) "Counterfeit gift card" means a gift card that:
(A) purports on its face to have been issued by an
issuer that did not issue the card;
(B) has been altered to contain a digital imprint
other than that which was placed on the card by the issuer;
(C) contains a digital imprint with information
differing from that which is printed or embossed on the card by the
issuer; or
(D) has been altered to change the information on
the face of the gift card from that which was printed or embossed on
the card by the issuer.
(2) "Digital imprint" means the digital data placed on
a gift card's magnetic strip or chip.
(3) "Gift card" means a card entitling the holder to
receive goods or services of a specified value from the issuer.
(4) "Owner" means, with reference to a gift card:
(A) a retailer, if the gift card has not been
activated; or
(B) a purchaser, if the gift card has been
purchased and activated by a retailer.
(b) A person commits an offense if the person, with the
intent to harm or defraud another, without the consent of the owner:
(1) removes a gift card from a retail location without
first activating the gift card at the point of sale;
(2) transports an un-activated gift card that was
previously acquired unlawfully into a retail location that sells
gift cards and places or attempts to place the gift card on a gift
card rack, kiosk, or any other display in a manner that would entice
the public to purchase the gift card;
(3) possesses the data stored on the digital imprint
of a gift card without first purchasing the gift card; or
(4) possesses, transports, or uses a counterfeit gift
card.
(c) If an actor possesses three or more un-activated gift
cards, counterfeit gift cards, or digital imprints of gift cards
that have not been purchased, a rebuttable presumption exists that
the actor possesses each item without the consent of the owner.
(d) The presumption established under Subsection (c) does
not apply to a business or other commercial entity or a governmental
agency that is engaged in a business activity or governmental
function that does not violate a penal law of this state.
(e) An offense under this section is:
(1) a state jail felony if the actor engaged in conduct
described by Subsection (b) with respect to fewer than five
un-activated gift cards, counterfeit gift cards, or digital
imprints of gift cards;
(2) a felony of the third degree if the actor engaged
in conduct described by Subsection (b) with respect to 5 or more but
fewer than 10 un-activated gift cards, counterfeit gift cards, or
digital imprints of gift cards;
(3) a felony of the second degree if the actor engaged
in conduct described by Subsection (b) with respect to 10 or more
but fewer than 50 un-activated gift cards, counterfeit gift cards,
or digital imprints of gift cards; or
(4) a felony of the first degree if the actor engaged
in conduct described by Subsection (b) with respect to 50 or more
un-activated gift cards, counterfeit gift cards, or digital
imprints of gift cards.
(f) If a court orders a defendant convicted of an offense
under this section to make restitution to a victim of the offense,
the court may order the defendant to reimburse the victim for lost
income or other expenses, other than attorney's fees, incurred as a
result of the offense.
(g) If conduct that constitutes an offense under this
section also constitutes an offense under any other law, the actor
may be prosecuted under this section, the other law, or both.
SECTION 2. This Act takes effect September 1, 2025.