HB4301 - Relating to the financial crimes intelligence center, including the establishment of an advisory committee and grants supporting the investigation and prosecution of certain offenses.

  89R15796 JCG-F     By: Cook H.B. No. 4301       A BILL TO BE ENTITLED   AN ACT   relating to the financial crimes intelligence center, including   the establishment of an advisory committee and grants supporting   the investigation and prosecution of certain offenses.          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 conduct constituting an [ act   that constitutes the ] offense [ of fraudulent use or possession of a   credit card or debit card ] under Section 32.315, Penal Code. The   term includes the commission of the offense by use of a skimmer.                 (2)     "Cargo theft" means conduct constituting an   offense under Section 31.18, Penal Code.                 (3)  [ (2) ]  "Center" means the financial crimes   intelligence center established under this chapter.                 (4)     "Chief" means the chief intelligence coordinator   appointed to supervise and manage the operation of the center under   Section 426.053.                 (5)  [ (3) ]  "Commission" means the Texas Commission of   Licensing and Regulation.                 (6)  [ (4) ]  "Department" means the Texas Department of   Licensing and Regulation.                 (7)     "Law enforcement agency" means an agency of this   state or a political subdivision of this state authorized by law to   appoint or employ peace officers.                 (8)     "Mail theft" means conduct constituting an offense   under Section 31.20, Penal Code.                 (9)     "Organized retail theft" means conduct   constituting an offense under Section 31.16, Penal Code.                 (10)     "Prosecutor" means a district attorney, a   criminal district attorney, or a county attorney who may prosecute   criminal offenses.                 (11)  [ (5) ]  "Skimmer" means an electronic, mechanical,   or other device that may be used to unlawfully intercept electronic   communications or data to perpetrate card fraud.                 (12)     "Theft of service" means conduct constituting an   offense under Section 31.04, Penal Code.                 (13)     "Unauthorized acquisition or transfer of certain   financial information" means conduct constituting an offense under   Section 31.17, Penal Code.          Sec.  426.002  [ 2312.002 ].  RULES.  The commission shall   adopt rules as necessary to implement this chapter.   SUBCHAPTER B. PURPOSE AND ADMINISTRATION ; LAW ENFORCEMENT AGENCY   AND PROSECUTOR DUTIES          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 card fraud and organized retail theft [ ,   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 card fraud   and organized retail theft .          Sec.  426.053  [ 2312.053 ].  OPERATION AGREEMENTS AUTHORIZED;   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 chief intelligence coordinator to supervise and manage the   operation of the center.          (b)  The 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 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)  detect skimmers;                (2)  ensure an effective response if a skimmer is   found; [ and ]                (3)  prevent card fraud ; and                 (4)  detect and prevent organized retail theft .          (c)  The center may:                (1)  serve as a centralized collection point for   information related to card fraud and organized retail theft ;                (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 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 card fraud   and organized retail theft in this state, including:                      (A)  an identification of the geographic   locations in this state that have the highest statistical   probability for card fraud and organized retail theft ; and                      (B)  a summary of card fraud and organized retail   theft statistics for the year in which the report is filed;                (3)  a detailed plan of operation for combatting card   fraud and organized retail theft ;                (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.           Sec.   426.056.     DUTIES OF LAW ENFORCEMENT AGENCIES AND   PROSECUTORS. (a)   A law enforcement agency or prosecutor that is   investigating or prosecuting organized retail theft, card fraud,   cargo theft, fraud involving gift cards and related to organized   retail theft, mail theft, theft of service, or unauthorized   acquisition or transfer of certain financial information, at the   request of the center, shall cooperate and assist the center in   collecting any statistical data or intelligence on the nature and   extent of those activities in the possession of the law enforcement   agency or prosecutor.           (b)     A law enforcement agency or prosecutor may disclose   confidential information under Subsection (a) to the center, and   any disclosure of confidential information under this section does   not waive or affect the confidentiality of the information for   purposes of state or federal law or waive the right to assert   exceptions to required disclosure of the information in the future.           (c)     Information collected under this section is excepted   from the requirements of Section 552.021.   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 FOR FRAUD   DETERRENCE . (a) Subject to the availability of appropriated   money, the department may award grants for the purposes of   Subsection (b) [ this chapter ] by entering into a contract with each   grant recipient.          (b)  A grant recipient may use grant money to:                (1)  reduce card fraud by removing skimmers;                (2)  purchase or upgrade fraud deterrence equipment,   including unique locking systems, cameras, and lights;                (3)  provide training opportunities regarding   skimmers; and                (4)  conduct public outreach regarding card fraud.           Sec.   426.103.     AWARD OF GRANTS FOR ORGANIZED RETAIL THEFT   INVESTIGATION AND PROSECUTION. (a)   From any funds available for   this purpose, the center by rule shall establish and implement   procedures to award grants that provide funding to eligible law   enforcement agencies and prosecuting attorneys to investigate and   prosecute organiz [Text truncated for display. 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