89R30099 MZM-F     By: Johnson, et al. S.B. No. 2373     (Capriglione)     Substitute the following for S.B. No. 2373:  No.       A BILL TO BE ENTITLED   AN ACT   relating to financial exploitation or financial abuse 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          Sec. 100B.001.  DEFINITIONS. In this chapter:                (1)  "Artificial intelligence" means a machine-based   system that can, for a given set of explicit or implicit objectives,   make predictions, recommendations, or decisions that influence   real or virtual environments.                (2)  "Artificially generated media" means an image, an   audio file, a video file, a radio broadcast, written text, or other   media created or modified using artificial intelligence or other   computer software with the intent to deceive.                (3)  "Financial exploitation" has the meaning 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 or intentional 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)  This section may not be construed to impose liability,   for content provided by another person, on:                (1)  the provider of an interactive computer service,   as defined by 47 U.S.C. Section 230(f);                (2)  a telecommunications service, as defined by 47   U.S.C. Section 153; or                (3)  a radio or television station licensed by the   Federal Communications Commission.          Sec. 100B.003.  CIVIL PENALTY FOR DISSEMINATION OF CERTAIN   COMMUNICATIONS FOR FINANCIAL EXPLOITATION. (a)  A person who   knowingly or intentionally 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)  An action brought by the attorney general under this   section shall be filed in a district court:                (1)  in Travis County; or                (2)  in any county in which all or part of the events or   omissions giving rise to the action occurred.          (c)  This section may not be construed to impose liability,   for content provided by another person, on:                (1)  the provider of an interactive computer service,   as defined by 47 U.S.C. Section 230(f);                (2)  a telecommunications service, as defined by 47   U.S.C. Section 153; or                (3)  a radio or television station licensed by the   Federal Communications Commission.          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.  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" has the meaning   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)  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.          (d)  This section does not apply, for content provided by   another person, to:                (1)  the provider of an interactive computer service,   as defined by 47 U.S.C. Section 230(f);                (2)  a telecommunications service, as defined by 47   U.S.C. Section 153; or                (3)  a radio or television station licensed by the   Federal Communications Commission.          SECTION 3.  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 4.  This Act takes effect September 1, 2025.