Relating to the operations of the Financial Crimes Intelligence Center.
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.
