2025S0218-1 03/12/25
By: Johnson S.B. No. 2373
A BILL TO BE ENTITLED
AN ACT
relating to the financial exploitation or abuse of persons using
artificially generated media or phishing communications; providing
a civil penalty; creating a criminal offense.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 4, Civil Practice and Remedies Code, is
amended by adding Chapter 100B to read as follows:
CHAPTER 100B. LIABILITY FOR FINANCIAL EXPLOITATION OF PERSONS
Sec. 100B.001. DEFINITIONS. In this chapter:
(1) "Artificial intelligence" means a machine-based
system that can, for a given set of human-defined objectives, make
predictions, recommendations, or decisions that influence real or
virtual environments.
(2) "Artificially generated media" means an image, an
audio recording, a video recording, a radio broadcast, or written
text created or modified using artificial intelligence or other
computer software with the intent to deceive.
(3) "Exploitation" and "financial exploitation" have
the meanings assigned by Section 281.001, Finance Code.
(4) "Phishing communication" means an attempt to
deceive or manipulate a person into providing personal, financial,
or identifying information through e-mail, electronic
communication, or other digital means.
Sec. 100B.002. CAUSE OF ACTION FOR DISSEMINATION OF CERTAIN
COMMUNICATIONS FOR FINANCIAL EXPLOITATION. (a) A person is liable
for damages resulting from a knowing dissemination of artificially
generated media or a phishing communication for the purpose of
financial exploitation.
(b) A court shall award a claimant who prevails in an action
brought under this section:
(1) actual damages, including damages for mental
anguish and the defendant's profits attributable to the
dissemination of the artificially generated media or phishing
communication; and
(2) court costs and reasonable attorney's fees
incurred in bringing the action.
(c) A court in which an action is brought under this
section, on a motion of a claimant, may issue a temporary
restraining order or a temporary or permanent injunction to
restrain and prevent the further dissemination of artificially
generated media or a phishing communication to the claimant.
(d) It is a defense to liability under this section that:
(1) the dissemination occurred as part of a lawful
criminal investigation; or
(2) the artificially generated media contains a
disclosure that:
(A) states that the media has been altered using
artificial intelligence or other computer software;
(B) for a recording or broadcast, occurs at the
beginning of or reasonably within the recording or broadcast; and
(C) for an image or written text, is clearly
legible.
Sec. 100B.003. CIVIL PENALTY FOR DISSEMINATION OF CERTAIN
COMMUNICATIONS FOR FINANCIAL EXPLOITATION. (a) A person who
knowingly disseminates artificially generated media or a phishing
communication for purposes of financial exploitation is subject to
a civil penalty not to exceed $1,000 per day the media or
communication is disseminated. The attorney general may bring an
action to collect the civil penalty.
(b) It is a defense to liability for a civil penalty imposed
under this section that:
(1) the dissemination occurred as part of a lawful
criminal investigation; or
(2) the artificially generated media contains a
disclosure that:
(A) states that the media has been altered using
artificial intelligence or other computer software;
(B) for a recording or broadcast, occurs at the
beginning of or reasonably within the recording or broadcast; and
(C) for an image or written text, is clearly
legible.
Sec. 100B.004. CONFIDENTIAL IDENTITY IN ACTION FOR
DISSEMINATION OF CERTAIN COMMUNICATIONS. (a) In this section,
"confidential identity" means:
(1) the use of a pseudonym; and
(2) the absence of any other identifying information,
including address, telephone number, and social security number.
(b) In an action brought under Section 100B.002 or 100B.003,
the court shall:
(1) notify the person who is the subject of the action
as early as possible in the action that the person may use a
confidential identity in relation to the action;
(2) allow a person who is the subject of the action to
use a confidential identity in all petitions, filings, and other
documents presented to the court;
(3) use the person's confidential identity in all of
the court's proceedings and records relating to the action,
including any appellate proceedings; and
(4) maintain the records relating to the action in a
manner that protects the person's confidentiality.
(c) In an action brought under Section 100B.002 or 100B.003,
only the following persons are entitled to know the true
identifying information about the person who is the subject of the
action:
(1) the court;
(2) a party to the action;
(3) an attorney representing a party to the action;
and
(4) a person authorized by a written order of the court
specific to that person.
(d) The court shall order that a person entitled to know the
true identifying information under Subsection (c) may not divulge
that information to anyone without a written order of the court.
The court shall hold a person who violates the order in contempt.
(e) Notwithstanding Section 22.004, Government Code, the
supreme court may not amend or adopt rules in conflict with this
section.
(f) A person is not required to use a confidential identity
as provided by this section.
SECTION 2. Section 32.55(e), Penal Code, is amended to read
as follows:
(e) A person who is subject to prosecution under both this
section and another section of this code may be prosecuted under
either section or both sections, except that the actor may not be
prosecuted under both this section and Section 32.56.
SECTION 3. Subchapter D, Chapter 32, Penal Code, is amended
by adding Section 32.56 to read as follows:
Sec. 32.56. FINANCIAL ABUSE USING ARTIFICIALLY GENERATED
MEDIA OR PHISHING. (a) In this section:
(1) "Artificially generated media" and "artificial
intelligence" have the meanings assigned by Section 100B.001, Civil
Practice and Remedies Code.
(2) "Financial abuse" has the meaning assigned by
Section 32.55.
(b) A person commits an offense if the person knowingly
engages in financial abuse:
(1) through the use of artificially generated media
disseminated to another person; or
(2) by deceiving or manipulating another person into
providing personal, financial, or identifying information through
e-mail, electronic communication, or other digital means.
(c) It is a defense to prosecution under this section that:
(1) the conduct was performed by an officer or
employee of a law enforcement agency in the course and scope of a
criminal investigation; or
(2) the artificially generated media contains a
disclosure that:
(A) states that the media has been altered using
artificial intelligence or other computer software;
(B) for a video or audio recording, occurs at the
beginning of the recording; and
(C) for an image or written text, appears in an
easily readable font size.
(d) An offense under this section is:
(1) a Class B misdemeanor if the value of the property
taken, appropriated, obtained, retained, or used is less than $100;
(2) a Class A misdemeanor if the value of the property
taken, appropriated, obtained, retained, or used is $100 or more
but less than $750;
(3) a state jail felony if the value of the property
taken, appropriated, obtained, retained, or used is $750 or more
but less than $2,500;
(4) a felony of the third degree if the value of the
property taken, appropriated, obtained, retained, or used is $2,500
or more but less than $30,000;
(5) a felony of the second degree if the value of the
property taken, appropriated, obtained, retained, or used is
$30,000 or more but less than $150,000; and
(6) a felony of the first degree if the value of the
property taken, appropriated, obtained, retained, or used is
$150,000 or more.
(e) If conduct constituting an offense under this section
also constitutes an offense under another section of this code, the
actor may be prosecuted under either section or under both
sections, except that the actor may not be prosecuted under both
this section and Section 32.55.
SECTION 4. Section 100B.002, Civil Practice and Remedies
Code, as added by this Act, applies only to a cause of action that
accrues on or after the effective date of this Act.
SECTION 5. This Act takes effect September 1, 2025.