Perez Bill Widens The Financial Crimes Intelligence Center’s Reach

The text as introduced · 1,229 words

89R9650 JCG-D

By: Perez of Harris
H.B. No. 3109

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.

(2-a) "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.

(3) "Commission" means the Texas Commission of

Licensing and Regulation.

(4) "Department" means the Texas Department of

Licensing and Regulation.

(4-a) "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.

(4-b) "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.

(5) "Skimmer" means an electronic, mechanical, or

other device that may be used to unlawfully intercept electronic

communications or data to perpetrate card fraud.

(6) "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 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 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 payment fraud;

(2) detect skimmers; and

(3) [ (2) ] ensure an effective response if a skimmer is

found[ ; and

[ (3) prevent card fraud ].

(c) The center may:

(1) serve as a centralized collection point for

information related to 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 payment

[ card ] fraud in this state, including:

(A) an identification of the geographic

locations in this state that have the highest statistical

probability for payment [ card ] fraud; and

(B) a summary of payment [ card ] fraud statistics

for the year in which the report is filed;

(3) a detailed plan of operation for combatting

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 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.