By: Nichols, Campbell S.B. No. 2371       West     A BILL TO BE ENTITLED   AN ACT   relating to skimmers on electronic terminals; authorizing a civil   penalty; 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 607A to read as follows:   CHAPTER 607A.  PAYMENT CARD SKIMMERS ON ELECTRONIC TERMINALS   SUBCHAPTER A. GENERAL PROVISIONS          Sec. 607A.001.  DEFINITIONS. In this chapter:                (1)  "Automated teller machine" has the meaning   assigned by Section 31.03, Penal Code.                (2)  "Center" means the financial crimes intelligence   center established under Chapter 2312, Occupations Code.                (3)  "Electronic terminal" means an electronic device,   other than a telephone operated by a consumer, through which a   consumer may initiate an electronic funds transfer. The term   includes a point-of-sale terminal, virtual currency terminal,   automated teller machine, and cash dispensing machine.                (4)  "Financial institution" has the meaning assigned   by Section 277.001, Finance Code.                (5)  "Institution of higher education" has the meaning   assigned by Section 61.003, Education Code.                (6)  "Merchant" has the meaning assigned by Section   2.104.                (7)  "Payment card" has the meaning assigned by Section   522.001.                (8)  "Payment card issuer" means a lender, including a   financial institution, or a merchant that receives applications and   issues payment cards to individuals.                (9)  "Payment card network" means an entity that   directly, or through a licensed member, processor, or agent,   provides the proprietary services, infrastructure, and software   that:                      (A)  route information to conduct debit card or   credit card transaction authorization, clearance, and settlement;   and                      (B)  the entity uses to accept as a form of payment   a brand of debit card, credit card, or other device to be used to   carry out debit or credit transactions.                (10)  "Service company" and "service technician" have   the meanings assigned by Section 2310.151, Occupations Code.                (11)  "Skimmer" means a wire or electronic device   capable of unlawfully intercepting electronic communications or   data to perpetrate fraud.                (12)  "Virtual currency" means an intangible   electronic medium of exchange, unit of account, or store of value.          Sec. 607A.002.  ADMINISTRATION AND ENFORCEMENT OF CHAPTER.   The center shall administer and enforce this chapter.          Sec. 607A.003.  RULES. The center shall adopt rules for   administering this chapter.   SUBCHAPTER B.  DUTIES FOR USE OF CERTAIN ELECTRONIC TERMINALS          Sec. 607A.051.  REQUIRED NOTICE OF SKIMMER DISCOVERY. (a)     If a service technician discovers a skimmer in or on an electronic   terminal, the service technician or service company that employs   the technician shall notify the center and the merchant of the   skimmer in the manner prescribed by center rule.          (b)  If a merchant discovers a skimmer in or on an electronic   terminal or is notified of the presence of a skimmer, the merchant   shall, in the manner prescribed by center rule:                (1)  disable, or cause to be disabled, the electronic   terminal on which the skimmer was discovered;                (2)  notify a law enforcement agency and the center   that a skimmer has been detected; and                (3)  take appropriate measures to protect the   electronic terminal from tampering until the center or law   enforcement agency arrives and the skimmer is removed.          Sec. 607A.052.  REPORT TO CENTER. The center may accept a   report of a suspected skimmer from any interested person,   including:                (1)  a law enforcement agency;                (2)  a financial institution;                (3)  a payment card issuer;                (4)  a service technician or service company;                (5)  a member of the public; and                (6)  a payment card network.          Sec. 607A.053.  INVESTIGATION OF SKIMMER REPORT. (a) On   receipt of a report under Section 607A.051 or 607A.052, the center   may conduct an inspection for the presence of suspected skimmers.          (b)  The center shall coordinate with law enforcement   agencies in conducting an investigation of the report.          (c)  If the skimmer is reported to be located on an   electronic terminal, the center may inspect, directly or in   coordination with a law enforcement agency, the electronic terminal   that is the subject of the report and any other electronic terminal   located at the same place of business.          (d)  A merchant shall cooperate with the center or law   enforcement agency during an investigation of a skimmer discovered   or reported at the merchant's place of business and allow the   inspection and alteration of an electronic terminal at the place of   business as necessary.          Sec. 607A.054.  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 center under Section   607A.051 or 607A.052; or                (2)  prepared or compiled by the center in connection   with the report or an investigation conducted under this   subchapter.          (b)  Information described by Subsection (a) may be   disclosed to:                (1)  an institution of higher education;                (2)  a law enforcement agency;                (3)  a payment card issuer, a financial institution   that is not a payment card issuer, or a payment card network that   may be impacted by the use of a skimmer on an electronic terminal;                (4)  another person if the disclosure of the   information is authorized or required by other law or court order;                (5)  a trade association representing a financial   institution;                (6)  a center contractor or other agent; or                (7)  the Texas Department of Banking.          (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 by the   center, information described by Subsection (a) is subject to   disclosure under Chapter 552, Government Code, unless the   information is subject to Section 31.301, Finance Code, or can be   classified as confidential information under applicable rules.          (e)  Notwithstanding Subsection (a), a law enforcement   agency or the center:                (1)  subject to Subdivision (2), may disclose to the   public information made confidential by that subdivision if the law   enforcement agency or the chief intelligence coordinator for the   center determines the disclosure of the information furthers a law   enforcement purpose; and                (2)  may not disclose to the public the identity of a   person who submits a report of a suspected skimmer to the center   under Section 607A.051 or 607A.052.   SUBCHAPTER C. ENFORCEMENT          Sec. 607A.101.  CIVIL PENALTY. (a) A person who violates   this chapter or a rule adopted under this chapter is liable to this   state for a civil penalty.  A civil penalty assessed under this   subsection may not exceed $5,000 per day for each violation.          (b)  The attorney general may bring an action to collect a   civil penalty under this section.          (c)  An action filed under this section must be filed in a   district court in Travis County.          (d)  The attorney general and the department may recover   reasonable expenses incurred in obtaining injunctive relief under   this section, including court costs, reasonable attorney's fees,   investigative costs, witness fees, and deposition expenses.          Sec. 607A.102.  CRIMINAL OFFENSES. (a)  A person commits an   offense if the person refuses to allow an inspection of an   electronic terminal at the merchant's place of business in   violation of Section 607A.053.  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 an   electronic terminal 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   installed on an electronic terminal by another person.  An offense   under this subsection is a felony of the third degree.          SECTION 2.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2025.