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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation of the offense of fraudulent use, |
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possession, or tampering with a gift card, gift card packaging, or |
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gift card data or redemption information. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 32, Penal Code, is amended |
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by adding Section 32.56 to read as follows: |
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Sec. 32.56. FRAUDULENT USE, POSSESSION, OR TAMPERING WITH A |
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GIFT CARD, GIFT CARD PACKAGING, OR GIFT CARD DATA OR REDEMPTION |
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INFORMATION. (a) In this section: |
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(1) "Cardholder" means a person to whom a physical or |
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virtual gift card is given or any person who purchased the gift |
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card. |
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(2) "Card issuer" means any person that issues a gift |
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card or the agent of that person with respect to the card. |
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(3) "Counterfeit gift card" means a gift card that: |
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(A) purports on the front or back of the card to |
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have been issued by an issuer that did not issue the card; |
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(B) has been altered to contain a digital imprint |
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other than that which was placed on the card by the issuer; |
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(C) contains a digital imprint with account or |
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other information differing from that which is printed or embossed |
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on the card; or |
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(D) has been altered to change the account or |
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other information, including an image or code, on the front or back |
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of the card from that which was printed or embossed on the card by |
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the issuer. |
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(4) "Digital imprint" means the digital data placed on |
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a gift card's magnetic strip or chip. |
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(5) "Gift card" means a card, code, or device that is |
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issued to a consumer on a prepaid basis in a specified amount and |
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redeemable upon presentation for the purchase of goods or services |
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and that is either activated or inactivated. |
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(6) "Gift card redemption information" means |
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information unique to each gift card that allows the cardholder to |
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access, transfer, or spend funds on the gift card. |
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(7) "Gift card seller" means a merchant engaged in the |
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business of selling gift cards to consumers. |
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(b) A person commits an offense if the person, with the |
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intent to harm or defraud another: |
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(1) acquires or retains possession of a gift card, a |
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digital imprint, or gift card redemption information without the |
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consent of the cardholder, card issuer, or gift card seller; |
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(2) alters or tampers with a gift card or gift card |
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packaging; |
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(3) possesses, transports, uses, or attempts to use a |
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gift card, a digital imprint, or gift card redemption information |
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to obtain goods, services, or anything else of value with knowledge |
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that the gift card is a counterfeit gift card or that the gift card, |
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digital imprint, or gift card redemption information has been |
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obtained in violation of Subdivision (1); or |
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(4) transports an unactivated gift card into a retail |
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location that sells gift cards and places or attempts to place the |
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gift card on a gift card rack, kiosk, or other display in a manner |
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that would entice the public to purchase the gift card. |
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(c) If an actor possesses three or more gift cards, |
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counterfeit gift cards, or digital imprints or the gift card |
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redemption information obtained from three or more gift cards, a |
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rebuttable presumption exists that the actor possesses each item |
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without the consent of the cardholder, card issuer, or gift card |
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seller. |
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(d) The presumption established under Subsection (c) does |
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not apply to a business or other commercial entity or a governmental |
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agency that is engaged in a business activity or governmental |
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function that does not violate a penal law of this state. |
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(e) An offense under this section is: |
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(1) a state jail felony if the actor engaged in conduct |
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described by Subsection (b) with respect to fewer than five |
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unactivated gift cards, counterfeit gift cards, or digital imprints |
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or gift card redemption information of gift cards; |
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(2) a felony of the third degree if the actor engaged |
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in conduct described by Subsection (b) with respect to 5 or more but |
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fewer than 10 unactivated gift cards, counterfeit gift cards, or |
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digital imprints or gift card redemption information of gift cards; |
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(3) a felony of the second degree if the actor engaged |
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in conduct described by Subsection (b) with respect to 10 or more |
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but fewer than 50 unactivated gift cards, counterfeit gift cards, |
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or digital imprints or gift card redemption information of gift |
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cards; or |
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(4) a felony of the first degree if the actor engaged |
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in conduct described by Subsection (b) with respect to 50 or more |
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unactivated gift cards, counterfeit gift cards, or digital imprints |
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or gift card redemption information of gift cards. |
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(f) If conduct that constitutes an offense under this |
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section also constitutes an offense under any other law, the actor |
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may be prosecuted under this section, the other law, or both. |
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SECTION 2. This Act takes effect September 1, 2025. |