LEGISLATIVE BUDGET BOARD
Austin, Texas
 
CRIMINAL JUSTICE IMPACT STATEMENT
 
86TH LEGISLATIVE REGULAR SESSION
 
April 18, 2019

TO:
Honorable Jim Murphy, Chair, House Committee on Pensions, Investments & Financial Services
 
FROM:
John McGeady, Assistant Director     Sarah Keyton, Assistant Director
Legislative Budget Board
 
IN RE:
HB2945 by Perez (relating to payment card skimmers on motor fuel dispensers and to creating a payment fraud fusion center; imposing civil penalties; creating criminal offenses.), Committee Report 1st House, Substituted

The provisions of the bill addressing felony sanctions are the subject of this analysis. The bill would amend various codes as they relate to payment card skimmers on motor fuel dispensers and to creating a payment fraud fusion center. Under the provisions of the bill, failure to comply with inspection of a motor fuel dispenser, or negligently or recklessly disposing of a discovered payment card skimmer, would be punishable as class C or class B misdemeanor, respectively. Knowingly disposing of a discovered payment card skimmer during the course of an investigation, or when criminal proceedings had been commenced or were pending, would be punishable as a third degree felony.

A third degree felony is punishable by confinement in prison for a term from 2 to 10 years and, in addition to confinement, an optional fine not to exceed $10,000. A Class B misdemeanor is punishable by confinement in county jail for a term not to exceed 180 days and in addition to confinement, an optional fine not to exceed $2,000. A Class C misdemeanor is punishable by a fine not to exceed $500 (up to 180 days of deferred disposition and no confinement).


Creating a new offense is expected to result in additional demands upon the correctional resources of the counties or of the State due to an increase in the number of individuals placed under supervision in the community or sentenced to terms of confinement within state correctional facilities. Whether the bill would have a significant impact on state correctional populations is indeterminate due to a lack of data or information indicating, not only how many payment card skimmers have been discovered by merchants as well as by other persons on motor fuel dispensers, but also what actions were taken in response to their discovery. Without this information, it is not possible to estimate the extent to which these new offenses might be applied.



Source Agencies:
LBB Staff:
WP, LM, DGi