SRC-TAG, EPT H.B. 2248 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 2248
78R9013 EMT-FBy: Denny (Armbrister)
Criminal Justice
5/18/2003
Engrossed


DIGEST AND PURPOSE 

The rapid growth of electronic payments and a fundamental shift in payment
methods by consumers have created a gap in the Penal Code that impedes the
effective prosecution of criminal activity affecting financial
institutions and their customers.  H.B. 2248 expands the definition of
debit card and identifying information, and amends appropriate sections of
the Penal Code to provide that a person commits an offense if the person
uses a debit card with the intent to obtain a benefit fraudulently. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 32.21(d), Penal Code, to provide that an
offense under this section is a state jail felony if the writing is or
purports to be a will, codicil, deed, deed of trust, mortgage, security
instrument, security agreement, credit card, check, authorization to debit
an account at a financial institution, or similar sight order for payment
of money, contract, release, or other commercial instrument. 
 
SECTION 2.  Amends Section 32.31(a)(4), Penal Code, to redefine "debit
card." 

SECTION 3.  Amends Section 32.31(b), Penal Code, to provide that a person
commits an offense if the person takes certain actions including:  the
person uses or induces the cardholder to use the cardholder's credit card
or debit card to obtain property or service for the actor's benefit for
which the cardholder is financially unable to pay; being authorized by an
issuer to furnish goods or services on presentation of a credit card or
debit card, he, with intent to defraud the issuer or the cardholder,
furnishes goods or services on presentation of a credit card or debit card
obtained or retained in violation of this section or a credit card or
debit card that is forged, expired, or revoked; or being authorized by an
issuer to furnish goods or services on presentation of a credit card or
debit card, he, with intent to defraud the issuer or a cardholder, fails
to furnish goods or services that he represents in writing to the issuer
that he has furnished. 
 
SECTION 4.  Amends Section 32.51(a)(1), Penal Code, to redefine
"identifying information."  

SECTION 5.  (a)  Effective date:  September 1, 2003.
 
 (b)  Makes application of this Act prospective.