SB2371

The new chapter covers devices through which consumers initiate electronic funds transfers, excluding a consumer-operated telephone. It adds a broader terminal framework alongside existing motor-fuel skimmer laws; it does not create the state’s first skimmer law. The Texas Commission of Licensing and Regulation administers and enforces the chapter and must adopt rules. Final law, sections 607A.001–.003; Existing motor-fuel reporting law; Existing motor-fuel offenses.

Discovery and inspection: Covered service technicians or their employers must notify the Financial Crimes Intelligence Center and the merchant when they discover a skimmer. Merchants who discover or are told about one must disable the terminal, notify law enforcement and the center, and protect it until officials arrive and the skimmer is removed, using the prescribed reporting procedures. “Service technician” uses the existing motor-fuel service-license definition, not every person who repairs computers. Anyone may report a suspected skimmer. The center may inspect the reported terminal and others at the same business in coordination with law enforcement; merchants must cooperate and allow necessary inspection and alteration. Final law, sections 607A.051–.053; Service-license definitions.

Penalties: Violating the chapter or its rules can carry a civil penalty of up to $5,000 per day for each violation, collectible by the attorney general in Travis County district court. Refusing a required inspection is a Class C misdemeanor, ordinarily punishable by a fine up to $500. Negligently or recklessly disposing of a skimmer installed by another person is a Class B misdemeanor, ordinarily carrying up to 180 days in jail, a fine up to $2,000, or both. Disposing of such a skimmer while knowing an investigation is ongoing or a criminal proceeding is pending is a third-degree felony, with the ordinary range of 2–10 years in prison and a possible fine up to $10,000. These disposal offenses have different mental-state requirements; the bill does not make every accidental loss a felony. Final law, sections 607A.101–.102; Class C range; Class B range; Third-degree range.

Information: Reports and related center investigation information are generally confidential, with authorized sharing for specified institutions, law enforcement, affected financial businesses, trade associations, contractors, banking regulators and legally authorized recipients. After dismissal or final resolution, public-disclosure law applies unless banking confidentiality or applicable rules protect the information. A law-enforcement-purpose public disclosure is allowed, but the center and law enforcement may not publicly identify the person who reported the suspected skimmer. Final law, section 607A.054; Banking confidentiality provision.

Changes during passage: The Senate committee removed the explicit motor-fuel-terminal example from the new definition and removed the proposed inspection exception for terminals affiliated with federally insured financial institutions. It did not write a blanket motor-fuel exclusion into the definition. The Senate-passed and House committee operative text then matched. Mary Ann Perez’s sole adopted floor amendment assigned administration and general rulemaking to the licensing commission rather than the center and removed “directly or,” leaving the terminal inspection provision tied to law-enforcement coordination. Those changes are in the final act. Introduced; Senate committee; Senate-passed; House committee; Perez amendment; Amendment action; Final law.

Compare the published text versions in the official text index. A change is not attributed to a specific amendment here without a verified record.

Consumers may benefit from quicker reporting and preservation of evidence; merchants face downtime, cooperation duties and potential penalties. Those benefits are intended, not measured reductions in fraud. The latest posted fiscal note, for the April 15 Senate committee version, anticipates no significant state fiscal impact and no local fiscal implication, while assuming enforcement and correctional effects will not be significant. It predates the House amendment and does not estimate merchant downtime, private compliance costs or consumer losses avoided. This briefing describes the act, not a claim that every required rule or enforcement process has been implemented. Latest posted fiscal note; Official document index; Final law.