S.B. No. 1499         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.             ______________________________ ______________________________      President of the Senate Speaker of the House                 I hereby certify that S.B. No. 1499 passed the Senate on   March 27, 2025, by the following vote:  Yeas 30, Nays 0.       ______________________________   Secretary of the Senate                I hereby certify that S.B. No. 1499 passed the House on   April 29, 2025, by the following vote:  Yeas 129, Nays 15, three   present not voting.       ______________________________   Chief Clerk of the House            Approved:     ______________________________                Date       ______________________________              Governor