Texas Senate Bill SB2372

Texas 2025 - 89th Regular

• Filed: 3/12/25

Caption

Relating to the creation of the criminal offense of fraudulent use, possession, or tampering with gift cards or gift card data.

Impact

Should SB2372 be enacted, it would amend the Texas Penal Code by adding Section 32.316. This new section categorizes various fraudulent activities involving gift cards as criminal offenses, thereby enhancing legal safeguards against this type of fraud. The bill specifies the penalties associated with differing levels of offense, based on the quantity of fraudulent gift cards involved, which ranges from state jail felonies to first-degree felonies. This creates a more structured legal framework to deter and prosecute gift card fraud effectively.

Summary

SB2372 establishes criminal liabilities associated with fraudulent activities involving gift cards. Specifically, it creates offenses for the fraudulent use, possession, or tampering with gift cards or their data. The bill defines key terms related to gift cards, including what constitutes a counterfeit gift card and the roles of owners in relation to gift cards. The legislation is aimed at protecting retailers and consumers from fraud committed through the unlawful acquisition and distribution of gift cards.

Contention

In legislative debates, discussions may arise regarding the implications of the bill for both consumers and retailers. Supporters of SB2372 argue that it will help curb the increasing rates of gift card fraud, which can lead to significant losses for businesses and consumers alike. Critics, however, may express concerns about the potential for overcriminalization in situations where individuals might accidentally violate the new provisions, raising questions about the balance between enforcement and fair treatment under the law.

Texas Constitutional Statutes Affected

Penal Code

• Chapter 32. Fraud
  • Section: New Section