Bill Text: TX HB2945 | 2019-2020 | 86th Legislature | Enrolled
Bill Title: Relating to payment card skimmers on motor fuel dispensers and to creating a payment fraud fusion center; imposing civil penalties; creating criminal offenses.
Spectrum: Slight Partisan Bill (Democrat 55-33)
Status: (Passed) 2019-06-10 - Effective on 9/1/19 [HB2945 Detail]
Download: Texas-2019-HB2945-Enrolled.html
H.B. No. 2945 |
|
||
relating to payment card skimmers on motor fuel dispensers and to | ||
creating a payment fraud fusion center; imposing civil penalties; | ||
creating criminal offenses. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Title 12, Business & Commerce Code, is amended by | ||
adding Chapter 607 to read as follows: | ||
CHAPTER 607. PAYMENT CARD SKIMMERS ON MOTOR FUEL DISPENSERS | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 607.001. DEFINITIONS. In this chapter: | ||
(1) "Center" means the payment fraud fusion center | ||
established under Chapter 424, Government Code. | ||
(2) "Department" means the state agency that is the | ||
licensing authority for service companies and service technicians. | ||
(3) "Financial institution" has the meaning assigned | ||
by Section 277.001, Finance Code. | ||
(4) "Merchant" means a person whose business includes | ||
the sale of motor fuel through motor fuel dispensers to retail | ||
customers. | ||
(5) "Motor fuel dispenser" means a machine that is | ||
used to pump gasoline, diesel, biofuels, or other types of fuels | ||
into motor vehicles. | ||
(6) "Payment card" has the meaning assigned by Section | ||
522.001. | ||
(7) "Service company" and "service technician" have | ||
the meanings assigned by Section 13.451, Agriculture Code. | ||
(8) "Skimmer" means a wire or electronic device that | ||
is capable of unlawfully intercepting electronic communications or | ||
data to perpetrate fraud. The term includes a re-encoder and | ||
scanning device, as those terms are defined by Section 522.001. | ||
(9) "Unattended payment terminal" means a | ||
point-of-sale terminal or kiosk that is operated by a customer to | ||
activate or complete a transaction through the use of a payment card | ||
or a payment by other electronic means. | ||
SUBCHAPTER B. DUTIES RELATED TO USE OF CERTAIN UNATTENDED PAYMENT | ||
TERMINALS | ||
Sec. 607.051. MERCHANT DUTIES REGARDING UNATTENDED PAYMENT | ||
TERMINALS ON MOTOR FUEL DISPENSERS. A merchant that has an | ||
unattended payment terminal on a motor fuel dispenser at the | ||
merchant's place of business shall implement procedures in | ||
accordance with the rules adopted by the attorney general under | ||
Section 607.052 to: | ||
(1) prevent the installation of a skimmer on the | ||
payment terminal; | ||
(2) find and remove a skimmer placed on the payment | ||
terminal; and | ||
(3) report the discovery of a skimmer to the | ||
department. | ||
Sec. 607.052. RULES. (a) The attorney general by rule | ||
shall establish reasonable policies and procedures that identify | ||
best practices for merchants to use to comply with Section 607.051. | ||
(b) In adopting rules under Subsection (a), the attorney | ||
general must consider: | ||
(1) emerging technology; | ||
(2) compliance costs to merchants; and | ||
(3) any impact the policies and procedures may have on | ||
consumers. | ||
Sec. 607.053. DISCOVERY OF SKIMMER. If a service | ||
technician discovers a skimmer on the unattended payment terminal | ||
of a motor fuel dispenser, the service technician or service | ||
company that employs the technician shall immediately notify the | ||
merchant of the skimmer. If a merchant discovers the skimmer or is | ||
notified of the skimmer by a service technician or other person, the | ||
merchant shall: | ||
(1) immediately disable, or cause to be disabled, the | ||
motor fuel dispenser on which the skimmer was discovered and notify | ||
a law enforcement agency that a skimmer has been detected; | ||
(2) take appropriate measures to protect from | ||
tampering with the motor fuel dispenser until the law enforcement | ||
agency arrives; and | ||
(3) not later than 24 hours after the discovery of the | ||
skimmer or a report of the discovery of a skimmer is made to the | ||
merchant, report the discovery to the department. | ||
Sec. 607.054. REPORT TO DEPARTMENT. (a) In this section, | ||
"interested person" includes: | ||
(1) a law enforcement agency; | ||
(2) a financial institution; | ||
(3) a credit card issuer as defined by Section | ||
505.001; | ||
(4) a service technician or service company; | ||
(5) a member of the public; or | ||
(6) any other interested person. | ||
(b) An interested person may submit a report of the | ||
discovery of a skimmer on an unattended payment terminal of a motor | ||
fuel dispenser at a merchant's place of business to the department. | ||
Sec. 607.055. INVESTIGATION OF SKIMMER REPORT. (a) On | ||
receipt of a report under Section 607.053 or 607.054, the | ||
department shall immediately notify the center and share the report | ||
with the center. | ||
(b) The department and the center shall coordinate with law | ||
enforcement agencies in conducting an investigation of the report. | ||
(c) The department may inspect, directly or in coordination | ||
with a law enforcement agency, the motor fuel dispenser that is the | ||
subject of the report. | ||
(d) A merchant shall cooperate with the department or law | ||
enforcement agency during an investigation of a skimmer discovered | ||
at the merchant's place of business and permit the department or | ||
agency to inspect and alter the motor fuel dispenser that is the | ||
subject of the report as necessary. | ||
Sec. 607.056. CONFIDENTIALITY. (a) Except as otherwise | ||
provided by this section, information is confidential and not | ||
subject to disclosure under Chapter 552, Government Code, if the | ||
information is: | ||
(1) from a report received by the department under | ||
Section 607.053 or 607.054; or | ||
(2) prepared or compiled by the department in | ||
connection with the report or an investigation conducted under this | ||
subchapter. | ||
(b) Information described by Subsection (a) may be | ||
disclosed to: | ||
(1) the attorney general; | ||
(2) a law enforcement agency; | ||
(3) the center; | ||
(4) a financial institution that may be impacted by | ||
the use of a skimmer on the unattended payment terminal of a motor | ||
fuel dispenser; or | ||
(5) another person if the disclosure of the | ||
information is permitted or required by other law or court order. | ||
(c) The disclosure of information under Subsection (b) is | ||
not a voluntary disclosure for purposes of Section 552.007, | ||
Government Code. | ||
(d) On the dismissal or final resolution of a report or | ||
investigation by the department, information described by | ||
Subsection (a) is subject to disclosure under Chapter 552, | ||
Government Code. | ||
(e) Notwithstanding Subsection (a), the attorney general | ||
may disclose to the public information made confidential by that | ||
subsection if the attorney general determines that the disclosure | ||
of the information furthers a law enforcement purpose. | ||
SUBCHAPTER C. ENFORCEMENT | ||
Sec. 607.101. CORRECTIVE ACTION. (a) If the attorney | ||
general has reason to believe that a merchant who, after an | ||
investigation conducted by the department or one or more law | ||
enforcement agencies, has at the merchant's place of business an | ||
unattended payment terminal of a motor fuel dispenser on which a | ||
skimmer was installed and who is in violation of a rule adopted by | ||
the attorney general under Section 607.052, the attorney general | ||
shall notify the merchant of the violation. | ||
(b) The attorney general may order the merchant to take | ||
corrective action as necessary, including the implementation of | ||
best practices and the training of employees to detect skimmers. | ||
Sec. 607.102. CIVIL PENALTIES. (a) A merchant who wilfully | ||
violates a rule adopted by the attorney general under Section | ||
607.052 is liable to this state for a civil penalty in an amount not | ||
to exceed $5,000. | ||
(b) A merchant who negligently fails to make a report within | ||
the period prescribed by Section 607.053, or who has had at least | ||
three reports made under that section within a 24-month period as a | ||
result of the merchant failing to comply with Subchapter B, is | ||
liable to this state for a civil penalty of at least $1,000 but not | ||
more than $5,000 for each violation. | ||
(c) The attorney general may bring an action to recover a | ||
civil penalty imposed under this section. | ||
Sec. 607.103. OFFENSES; PENALTIES. (a) A person commits an | ||
offense if the person refuses to allow an inspection of a motor fuel | ||
dispenser at the merchant's place of business in violation of | ||
Section 607.055. An offense under this subsection is a Class C | ||
misdemeanor. | ||
(b) A person commits an offense if the person negligently or | ||
recklessly disposes of a skimmer that was installed on the | ||
unattended payment terminal of a motor fuel dispenser by another | ||
person. An offense under this subsection is a Class B misdemeanor. | ||
(c) A person commits an offense if, knowing that an | ||
investigation is ongoing or that a criminal proceeding has been | ||
commenced and is pending, the person disposes of a skimmer that was | ||
installed on the unattended payment terminal of a motor fuel | ||
dispenser by another person. An offense under this subsection is a | ||
felony of the third degree. | ||
SECTION 2. Subtitle B, Title 4, Government Code, is amended | ||
by adding Chapter 424 to read as follows: | ||
CHAPTER 424. PAYMENT FRAUD FUSION CENTER | ||
Sec. 424.001. DEFINITIONS. In this chapter: | ||
(1) "Center" means the payment fraud fusion center | ||
established under this chapter. | ||
(2) "Payment card" has the meaning assigned by Section | ||
522.001, Business & Commerce Code. | ||
(3) "Payment fraud" means a fraudulent payment | ||
transaction made by the unauthorized use of a payment card or other | ||
electronic means. | ||
(4) "Skimmer" means a wire or electronic device that | ||
is capable of unlawfully intercepting electronic communications or | ||
data to perpetrate fraud. The term includes a re-encoder and | ||
scanning device, as those terms are defined by Section 522.001, | ||
Business & Commerce Code. | ||
Sec. 424.002. PAYMENT FRAUD FUSION CENTER ESTABLISHED. (a) | ||
Law enforcement agencies or other governmental agencies designated | ||
by the attorney general may collaborate with the attorney general | ||
to establish a payment fraud fusion center. | ||
(b) The attorney general shall establish the center in the | ||
City of Tyler. | ||
Sec. 424.003. PURPOSE OF CENTER. (a) The center serves as | ||
the state's primary entity for the planning, coordination, and | ||
integration of the capabilities of law enforcement agencies and | ||
other governmental agencies to respond to criminal activity that is | ||
related to payment fraud, including through the use of skimmers. | ||
(b) The purpose of the center is to maximize the ability of | ||
law enforcement agencies and other governmental agencies to detect, | ||
prevent, and respond to criminal activities related to payment | ||
fraud. | ||
Sec. 424.004. POWERS AND DUTIES. (a) The center may | ||
collaborate with federal agencies for the performance of the | ||
center's duties and to accomplish the purpose of the center. | ||
(b) The center shall assist law enforcement agencies and | ||
other governmental agencies and merchants in their efforts to | ||
develop and implement strategies to: | ||
(1) detect skimmers; | ||
(2) ensure an effective response if a skimmer is | ||
found; and | ||
(3) prevent payment fraud. | ||
Sec. 424.005. DIRECTOR. (a) The attorney general shall | ||
appoint a director to supervise and manage the center. | ||
(b) The director is under the supervision and direction of | ||
the attorney general. | ||
Sec. 424.006. RULES. The attorney general by rule shall | ||
adopt reasonable policies and procedures necessary to implement | ||
this chapter. | ||
Sec. 424.007. FACILITIES AND ADMINISTRATIVE SUPPORT. A | ||
municipality's police department may provide facilities and | ||
administrative support to a payment fraud fusion center established | ||
in the municipality. | ||
Sec. 424.008. GIFTS AND GRANTS. The payment fraud fusion | ||
center may accept gifts, grants, and donations to carry out the | ||
purpose of the center. | ||
SECTION 3. The attorney general is required to implement | ||
Chapter 424, Government Code, as added by this Act, only if the | ||
legislature appropriates money specifically for that purpose. If | ||
the legislature does not appropriate money specifically for that | ||
purpose, the attorney general may, but is not required to, | ||
implement Chapter 424, Government Code, as added by this Act, using | ||
other appropriations available for that purpose. | ||
SECTION 4. This Act takes effect September 1, 2019. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 2945 was passed by the House on May 2, | ||
2019, by the following vote: Yeas 141, Nays 2, 1 present, not | ||
voting; and that the House concurred in Senate amendments to H.B. | ||
No. 2945 on May 22, 2019, by the following vote: Yeas 145, Nays 0, | ||
1 present, not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 2945 was passed by the Senate, with | ||
amendments, on May 14, 2019, by the following vote: Yeas 31, Nays | ||
0. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: __________________ | ||
Date | ||
__________________ | ||
Governor |