89R13523 JCG-F

By: Zaffirini S.B. No. 1491

A BILL TO BE ENTITLED

AN ACT

relating to the operations of the Financial Crimes Intelligence Center.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 2312, Occupations Code, is transferred to Subtitle B, Title 4, Government Code, redesignated as Chapter 426, Government Code, and amended to read as follows:

CHAPTER 426 [2312]. FINANCIAL CRIMES INTELLIGENCE CENTER

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 426.001 [2312.001]. DEFINITIONS. In this chapter:

(1) "Card fraud" means an act that constitutes the offense of fraudulent use or possession of a credit card or debit card under Section 32.315, Penal Code.

(2) "Center" means the financial crimes intelligence center established under this chapter.

(3) "Check fraud" means conduct that constitutes an offense under Section 32.21, Penal Code, with respect to a sight order, as defined by Section 1.07, Penal Code.

(4) [(3)] "Commission" means the Texas Commission of Licensing and Regulation.

(5) [(4)] "Department" means the Texas Department of Licensing and Regulation.

(6) "Electronic fund transfer" means any transfer of funds, other than a transaction originated by check, money order, or similar paper instrument, that is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape and that orders, instructs, or authorizes a financial institution to debit or credit an account.

(7) "Motor fuel manipulation device" means a mechanism manufactured, assembled, or adapted to manipulate or alter a motor fuel metering device or a motor fuel unattended payment terminal for an unlawful purpose.

(8) "Motor fuel theft" means an act that:

(A) constitutes an offense under Section 31.03, Penal Code; and

(B) qualifies for an affirmative finding of motor fuel theft under Article 42.019, Code of Criminal Procedure.

(9) "Payment fraud" means:

(A) conduct constituting card fraud or check fraud;

(B) sending an unauthorized payment order;

(C) initiating an electronic fund transfer without the consent of the account holder; or

(D) any other act involving a fraudulent order for payment of money, as defined by commission rule.

(10) [(5)] "Skimmer" means an electronic, mechanical, or other device that may be used to unlawfully intercept electronic communications or data to perpetrate card fraud. The term includes a credit card shimmer.

(11) "Unauthorized payment order" means a payment order received by a receiving bank that is not:

(A) an authorized order of a customer identified as sender under Section 4A.202(a), Business & Commerce Code; or

(B) effective as an order of the customer under Section 4A.202(b) of that code.

Sec. 426.002 [2312.002]. RULES. The commission shall adopt rules as necessary to implement this chapter.

SUBCHAPTER B. PURPOSE AND ADMINISTRATION

Sec. 426.051 [2312.051]. FINANCIAL CRIMES INTELLIGENCE CENTER ESTABLISHED. The commission shall establish the center within the department.

Sec. 426.052 [2312.052]. PURPOSES OF CENTER. The purposes of the center are to:

(1) serve as the state's primary entity for the planning, coordination, and integration of law enforcement agencies and other governmental agencies that respond to criminal activity related to motor fuel theft and payment [card] fraud, including through the use of skimmers; and

(2) maximize the ability of the department, law enforcement agencies, and other governmental agencies to detect, prevent, and respond to criminal activities related to motor fuel theft and payment [card] fraud.

Sec. 426.053 [2312.053]. OPERATION AGREEMENTS AUTHORIZED; DIRECTOR [CHIEF INTELLIGENCE COORDINATOR]. (a) The department:

(1) may enter into agreements with law enforcement agencies or other governmental agencies for the operation of the center; and

(2) shall enter into an agreement with a law enforcement agency or other governmental agency for the appointment of a director [chief intelligence coordinator] to supervise and manage the operation of the center.

(b) The director [chief intelligence coordinator] appointed under the agreement required by Subsection (a)(2) may be a licensed peace officer. The agreement must provide that the commission of a director [chief intelligence coordinator] who is a licensed peace officer will be carried by the agency with which the department enters into the agreement under that subdivision.

(c) Information a law enforcement agency or other governmental agency collects and maintains under an agreement entered into with the department under this chapter is the intellectual property of the center. On termination of the agreement, the contracting agency shall transfer the information to the department in accordance with the terms of the agreement.

Sec. 426.054 [2312.054]. POWERS AND DUTIES. (a) The center may collaborate with federal, state, and local governmental agencies to accomplish the purposes of the center.

(b) The center shall assist law enforcement agencies, other governmental agencies, financial institutions, credit card issuers, debit card issuers, payment card networks, institutions of higher education, and merchants in their efforts to develop and implement strategies to:

(1) prevent and respond to motor fuel theft and payment fraud;

(2) detect skimmers and motor fuel manipulation devices; and

(3) [(2)] ensure an effective response if a skimmer or motor fuel manipulation device is found[; and

[(3) prevent card fraud].

(b-1) On request of a law enforcement or other governmental agency, the center may provide assistance to that agency regarding any matter within the center's expertise.

(c) The center may:

(1) serve as a centralized collection point for information related to motor fuel theft and payment [card] fraud;

(2) provide training and educational opportunities to law enforcement;

(3) provide outreach to the public; and

(4) release information to affected financial institutions, credit card issuers, debit card issuers, payment card networks, institutions of higher education, and merchants if the center does not consider the information to be sensitive to law enforcement.

(d) For purposes of Subsection (c)(4), information is considered sensitive to law enforcement if the information could cause harm to law enforcement activities or jeopardize an investigation or operation if disclosed.

Sec. 426.055 [2312.055]. ANNUAL REPORT. (a) Not later than December 1 of each year, the director [chief intelligence coordinator] shall file a report with the department.

(b) The report must include:

(1) a plan of operation for the center and an estimate of the amount of money necessary to implement that plan;

(2) an assessment of the current state of motor fuel theft and payment [card] fraud in this state, including:

(A) an identification of the geographic locations in this state that have the highest statistical probability for motor fuel theft and payment [card] fraud; and

(B) a summary of motor fuel theft and payment [card] fraud statistics for the year in which the report is filed;

(3) a detailed plan of operation for combatting motor fuel theft and payment [card] fraud;

(4) a communications plan for outreach to law enforcement agencies, financial institutions, credit card issuers, debit card issuers, payment card networks, merchants, and the public; and

(5) a list of expenditures made since the most recent report was filed with the department.

SUBCHAPTER C. FINANCIAL PROVISIONS

Sec. 426.101 [2312.101]. FUNDING. The department may solicit and accept gifts, grants, and other donations to fund, administer, and carry out the purposes of the center, except that the department may not solicit or accept a gift, grant, or other donation from a license holder as defined by Section 2310.151, Occupations Code.

Sec. 426.102 [2312.102]. AWARD OF GRANTS. (a) Subject to the availability of appropriated money, the department may award grants for the purposes of this chapter by entering into a contract with each grant recipient.

(b) A grant recipient may use grant money to:

(1) reduce payment [card] fraud by removing skimmers;

(2) purchase or upgrade payment fraud deterrence equipment, including unique locking systems, cameras, and lights;

(3) provide training opportunities regarding payment fraud and skimmers; and

(4) conduct public outreach regarding motor fuel theft and payment [card] fraud.

SECTION 2. As soon as practicable after the effective date of this Act, the Texas Commission of Licensing and Regulation shall adopt rules necessary to implement the changes in law made by this Act to Chapter 426, Government Code, as transferred, redesignated, and amended by this Act.

SECTION 3. This Act takes effect September 1, 2025.