Nichols Gift Card Bill Makes 50 Cards A First-Degree Felony

The text as introduced · 702 words

89R5769 JDK-D

By: Nichols
S.B. No. 2372

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the criminal offense of fraudulent use,

possession, or tampering with gift cards or gift card data.

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

SECTION 1. Subchapter C, Chapter 32, Penal Code, is amended

by adding Section 32.316 to read as follows:

Sec. 32.316. FRAUDULENT USE, POSSESSION, OR TAMPERING WITH

GIFT CARDS OR GIFT CARD DATA. (a) In this section:

(1) "Counterfeit gift card" means a gift card that:

(A) purports on its face to have been issued by an

issuer that did not issue the card;

(B) has been altered to contain a digital imprint

other than that which was placed on the card by the issuer;

(C) contains a digital imprint with information

differing from that which is printed or embossed on the card by the

issuer; or

(D) has been altered to change the information on

the face of the gift card from that which was printed or embossed on

the card by the issuer.

(2) "Digital imprint" means the digital data placed on

a gift card's magnetic strip or chip.

(3) "Gift card" means a card entitling the holder to

receive goods or services of a specified value from the issuer.

(4) "Owner" means, with reference to a gift card:

(A) a retailer, if the gift card has not been

activated; or

(B) a purchaser, if the gift card has been

purchased and activated by a retailer.

(b) A person commits an offense if the person, with the

intent to harm or defraud another, without the consent of the owner:

(1) removes a gift card from a retail location without

first activating the gift card at the point of sale;

(2) transports an un-activated gift card that was

previously acquired unlawfully into a retail location that sells

gift cards and places or attempts to place the gift card on a gift

card rack, kiosk, or any other display in a manner that would entice

the public to purchase the gift card;

(3) possesses the data stored on the digital imprint

of a gift card without first purchasing the gift card; or

(4) possesses, transports, or uses a counterfeit gift

card.

(c) If an actor possesses three or more un-activated gift

cards, counterfeit gift cards, or digital imprints of gift cards

that have not been purchased, a rebuttable presumption exists that

the actor possesses each item without the consent of the owner.

(d) The presumption established under Subsection (c) does

not apply to a business or other commercial entity or a governmental

agency that is engaged in a business activity or governmental

function that does not violate a penal law of this state.

(e) An offense under this section is:

(1) a state jail felony if the actor engaged in conduct

described by Subsection (b) with respect to fewer than five

un-activated gift cards, counterfeit gift cards, or digital

imprints of gift cards;

(2) a felony of the third degree if the actor engaged

in conduct described by Subsection (b) with respect to 5 or more but

fewer than 10 un-activated gift cards, counterfeit gift cards, or

digital imprints of gift cards;

(3) a felony of the second degree if the actor engaged

in conduct described by Subsection (b) with respect to 10 or more

but fewer than 50 un-activated gift cards, counterfeit gift cards,

or digital imprints of gift cards; or

(4) a felony of the first degree if the actor engaged

in conduct described by Subsection (b) with respect to 50 or more

un-activated gift cards, counterfeit gift cards, or digital

imprints of gift cards.

(f) If a court orders a defendant convicted of an offense

under this section to make restitution to a victim of the offense,

the court may order the defendant to reimburse the victim for lost

income or other expenses, other than attorney's fees, incurred as a

result of the offense.

(g) If conduct that constitutes an offense under this

section also constitutes an offense under any other law, the actor

may be prosecuted under this section, the other law, or both.

SECTION 2. This Act takes effect September 1, 2025.