2025S0218-1 03/12/25     By: Johnson S.B. No. 2373     A BILL TO BE ENTITLED   AN ACT   relating to the financial exploitation or abuse of persons using   artificially generated media or phishing communications; providing   a civil penalty; creating a criminal offense.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Title 4, Civil Practice and Remedies Code, is   amended by adding Chapter 100B to read as follows:   CHAPTER 100B. LIABILITY FOR FINANCIAL EXPLOITATION OF PERSONS          Sec. 100B.001.  DEFINITIONS. In this chapter:                (1)  "Artificial intelligence" means a machine-based   system that can, for a given set of human-defined objectives, make   predictions, recommendations, or decisions that influence real or   virtual environments.                (2)  "Artificially generated media" means an image, an   audio recording, a video recording, a radio broadcast, or written   text created or modified using artificial intelligence or other   computer software with the intent to deceive.                (3)  "Exploitation" and "financial exploitation" have   the meanings assigned by Section 281.001, Finance Code.                (4)  "Phishing communication" means an attempt to   deceive or manipulate a person into providing personal, financial,   or identifying information through e-mail, electronic   communication, or other digital means.          Sec. 100B.002.  CAUSE OF ACTION FOR DISSEMINATION OF CERTAIN   COMMUNICATIONS FOR FINANCIAL EXPLOITATION. (a) A person is liable   for damages resulting from a knowing dissemination of artificially   generated media or a phishing communication for the purpose of   financial exploitation.          (b)  A court shall award a claimant who prevails in an action   brought under this section:                (1)  actual damages, including damages for mental   anguish and the defendant's profits attributable to the   dissemination of the artificially generated media or phishing   communication; and                (2)  court costs and reasonable attorney's fees   incurred in bringing the action.          (c)  A court in which an action is brought under this   section, on a motion of a claimant, may issue a temporary   restraining order or a temporary or permanent injunction to   restrain and prevent the further dissemination of artificially   generated media or a phishing communication to the claimant.          (d)  It is a defense to liability under this section that:                (1)  the dissemination occurred as part of a lawful   criminal investigation; or                (2)  the artificially generated media contains a   disclosure that:                      (A)  states that the media has been altered using   artificial intelligence or other computer software;                      (B)  for a recording or broadcast, occurs at the   beginning of or reasonably within the recording or broadcast; and                      (C)  for an image or written text, is clearly   legible.          Sec. 100B.003.  CIVIL PENALTY FOR DISSEMINATION OF CERTAIN   COMMUNICATIONS FOR FINANCIAL EXPLOITATION. (a) A person who   knowingly disseminates artificially generated media or a phishing   communication for purposes of financial exploitation is subject to   a civil penalty not to exceed $1,000 per day the media or   communication is disseminated. The attorney general may bring an   action to collect the civil penalty.          (b)  It is a defense to liability for a civil penalty imposed   under this section that:                (1)  the dissemination occurred as part of a lawful   criminal investigation; or                (2)  the artificially generated media contains a   disclosure that:                      (A)  states that the media has been altered using   artificial intelligence or other computer software;                      (B)  for a recording or broadcast, occurs at the   beginning of or reasonably within the recording or broadcast; and                      (C)  for an image or written text, is clearly   legible.          Sec. 100B.004.  CONFIDENTIAL IDENTITY IN ACTION FOR   DISSEMINATION OF CERTAIN COMMUNICATIONS. (a) In this section,   "confidential identity" means:                (1)  the use of a pseudonym; and                (2)  the absence of any other identifying information,   including address, telephone number, and social security number.          (b)  In an action brought under Section 100B.002 or 100B.003,   the court shall:                (1)  notify the person who is the subject of the action   as early as possible in the action that the person may use a   confidential identity in relation to the action;                (2)  allow a person who is the subject of the action to   use a confidential identity in all petitions, filings, and other   documents presented to the court;                (3)  use the person's confidential identity in all of   the court's proceedings and records relating to the action,   including any appellate proceedings; and                (4)  maintain the records relating to the action in a   manner that protects the person's confidentiality.          (c)  In an action brought under Section 100B.002 or 100B.003,   only the following persons are entitled to know the true   identifying information about the person who is the subject of the   action:                (1)  the court;                (2)  a party to the action;                (3)  an attorney representing a party to the action;   and                (4)  a person authorized by a written order of the court   specific to that person.          (d)  The court shall order that a person entitled to know the   true identifying information under Subsection (c) may not divulge   that information to anyone without a written order of the court.   The court shall hold a person who violates the order in contempt.          (e)  Notwithstanding Section 22.004, Government Code, the   supreme court may not amend or adopt rules in conflict with this   section.          (f)  A person is not required to use a confidential identity   as provided by this section.          SECTION 2.  Section 32.55(e), Penal Code, is amended to read   as follows:          (e)  A person who is subject to prosecution under both this   section and another section of this code may be prosecuted under   either section or both sections, except that the actor may not be   prosecuted under both this section and Section 32.56.          SECTION 3.  Subchapter D, Chapter 32, Penal Code, is amended   by adding Section 32.56 to read as follows:          Sec. 32.56.  FINANCIAL ABUSE USING ARTIFICIALLY GENERATED   MEDIA OR PHISHING. (a) In this section:                (1)  "Artificially generated media" and "artificial   intelligence" have the meanings assigned by Section 100B.001, Civil   Practice and Remedies Code.                (2)  "Financial abuse" has the meaning assigned by   Section 32.55.          (b)  A person commits an offense if the person knowingly   engages in financial abuse:                (1)  through the use of artificially generated media   disseminated to another person; or                (2)  by deceiving or manipulating another person into   providing personal, financial, or identifying information through   e-mail, electronic communication, or other digital means.          (c)  It is a defense to prosecution under this section that:                (1)  the conduct was performed by an officer or   employee of a law enforcement agency in the course and scope of a   criminal investigation; or                (2)  the artificially generated media contains a   disclosure that:                      (A)  states that the media has been altered using   artificial intelligence or other computer software;                      (B)  for a video or audio recording, occurs at the   beginning of the recording; and                      (C)  for an image or written text, appears in an   easily readable font size.          (d)  An offense under this section is:                (1)  a Class B misdemeanor if the value of the property   taken, appropriated, obtained, retained, or used is less than $100;                (2)  a Class A misdemeanor if the value of the property   taken, appropriated, obtained, retained, or used is $100 or more   but less than $750;                (3)  a state jail felony if the value of the property   taken, appropriated, obtained, retained, or used is $750 or more   but less than $2,500;                (4)  a felony of the third degree if the value of the   property taken, appropriated, obtained, retained, or used is $2,500   or more but less than $30,000;                (5)  a felony of the second degree if the value of the   property taken, appropriated, obtained, retained, or used is   $30,000 or more but less than $150,000; and                (6)  a felony of the first degree if the value of the   property taken, appropriated, obtained, retained, or used is   $150,000 or more.          (e)  If conduct constituting an offense under this section   also constitutes an offense under another section of this code, the   actor may be prosecuted under either section or under both   sections, except that the actor may not be prosecuted under both   this section and Section 32.55.          SECTION 4.  Section 100B.002, Civil Practice and Remedies   Code, as added by this Act, applies only to a cause of action that   accrues on or after the effective date of this Act.          SECTION 5.  This Act takes effect September 1, 2025.