Relating to the creation of the offense of fraudulent use, possession, or tampering with a gift card, gift card packaging, or gift card data or redemption information.

89(R) HB 3014 - House Committee Report version - Bill Text

89R20902 JDK-F

By: Lambert, Cook, Perez of Harris

H.B. No. 3014

Substitute the following for H.B. No. 3014:

By: Holt

C.S.H.B. No. 3014

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the offense of fraudulent use,

possession, or tampering with a gift card, gift card packaging, or

gift card data or redemption information.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter D, Chapter 32, Penal Code, is amended

by adding Section 32.56 to read as follows:

Sec.

32.56.

FRAUDULENT USE, POSSESSION, OR TAMPERING WITH A

GIFT CARD, GIFT CARD PACKAGING, OR GIFT CARD DATA OR REDEMPTION

INFORMATION. (a) In this section:

(1)

"Cardholder" means a person to whom a physical or

virtual gift card is given or any person who purchased the gift

card.

(2)

"Card issuer" means any person that issues a gift

card or the agent of that person with respect to the card.

(3) "Counterfeit gift card" means a gift card that:

(A)

purports on the front or back of the card to

have been issued by an issuer that did not issue the card;

(B)

has been altered to contain a digital imprint

other than that which was placed on the card by the issuer;

(C)

contains a digital imprint with account or

other information differing from that which is printed or embossed

on the card; or

(D)

has been altered to change the account or

other information, including an image or code, on the front or back

of the card from that which was printed or embossed on the card by

the issuer.

(4)

"Digital imprint" means the digital data placed on

a gift card's magnetic strip or chip.

(5)

"Gift card" means a card, code, or device that is

issued to a consumer on a prepaid basis in a specified amount and

redeemable upon presentation for the purchase of goods or services

and that is either activated or inactivated.

(6)

"Gift card redemption information" means

information unique to each gift card that allows the cardholder to

access, transfer, or spend funds on the gift card.

(7)

"Gift card seller" means a merchant engaged in the

business of selling gift cards to consumers.

(b)

A person commits an offense if the person, with the

intent to harm or defraud another:

(1)

acquires or retains possession of a gift card, a

digital imprint, or gift card redemption information without the

consent of the cardholder, card issuer, or gift card seller;

(2)

alters or tampers with a gift card or gift card

packaging;

(3)

possesses, transports, uses, or attempts to use a

gift card, a digital imprint, or gift card redemption information

to obtain goods, services, or anything else of value with knowledge

that the gift card is a counterfeit gift card or that the gift card,

digital imprint, or gift card redemption information has been

obtained in violation of Subdivision (1); or

(4)

transports an unactivated gift card into a retail

location that sells gift cards and places or attempts to place the

gift card on a gift card rack, kiosk, or other display in a manner

that would entice the public to purchase the gift card.

(c)

If an actor possesses three or more gift cards,

counterfeit gift cards, or digital imprints or the gift card

redemption information obtained from three or more gift cards, a

rebuttable presumption exists that the actor possesses each item

without the consent of the cardholder, card issuer, or gift card

seller.

(d)

The presumption established under Subsection (c) does

not apply to a business or other commercial entity or a governmental

agency that is engaged in a business activity or governmental

function that does not violate a penal law of this state.

(e) An offense under this section is:

(1)

a state jail felony if the actor engaged in conduct

described by Subsection (b) with respect to fewer than five

unactivated gift cards, counterfeit gift cards, or digital imprints

or gift card redemption information of gift cards;

(2)

a felony of the third degree if the actor engaged

in conduct described by Subsection (b) with respect to 5 or more but

fewer than 10 unactivated gift cards, counterfeit gift cards, or

digital imprints or gift card redemption information of gift cards;

(3)

a felony of the second degree if the actor engaged

in conduct described by Subsection (b) with respect to 10 or more

but fewer than 50 unactivated gift cards, counterfeit gift cards,

or digital imprints or gift card redemption information of gift

cards; or

(4)

a felony of the first degree if the actor engaged

in conduct described by Subsection (b) with respect to 50 or more

unactivated gift cards, counterfeit gift cards, or digital imprints

or gift card redemption information of gift cards.

(f)

If conduct that constitutes an offense under this

section also constitutes an offense under any other law, the actor

may be prosecuted under this section, the other law, or both.

SECTION 2. This Act takes effect September 1, 2025.