TO:	Honorable John Whitmire, Chair, Senate Committee on Criminal Justice
FROM:	Ursula Parks, Director, Legislative Budget Board
IN RE:	HB9 by Capriglione (Relating to cybercrime; creating criminal offenses.), As Engrossed

The provisions of the bill addressing felony sanctions are the subject of this analysis. The bill would amend the Penal Code to create the offenses electronic access interference, electronic data tampering, and unlawful decryption. Under the provisions of the bill, certain individuals who intentionally interrupt or suspend access to a computer system or network without the effective consent of the owner could be prosecuted for electronic access interference, a third degree felony. The bill would also make electronic data tampering, intentionally altering data as it transmits between two computers in a computer network or system or introducing ransomware onto a computer or a computer network or system through deception and without a legitimate business purpose, a criminal offense. Intentionally decrypting encrypted private information through deception and without a legitimate business purpose as outlined in the bill's provisions would be unlawful decryption, a criminal offense. The punishments for electronic data tampering and unlawful decryption would range from a misdemeanor to a felony with the punishment based on intent, the type of system or network involved, and the amount of pecuniary loss.

A first degree felony is punishable by confinement in prison for life or a term from 5 to 99 years; a second degree felony for a term from 2 to 20 years; a third degree felony for a term from 2 to 10 years; and a state jail felony is punishable by confinement in state jail for a term from 180 days to 2 years or Class A misdemeanor punishment. In addition to confinement, most felony offenses are also subject to an optional fine not to exceed $10,000.

Creating an offense is expected to result in increased demands on the correctional resources of the counties or of the State due to a potential increase in the number of individuals placed under supervision in the community or sentenced to a term of confinement within state correctional institutions. However, this analysis assumes the provisions of the bill addressing felony sanctions would not result in a significant impact on the demand for state correctional resources.