Relating to financial exploitation or financial abuse using artificially generated media or phishing communications; providing a civil penalty; creating a criminal offense.

89(R) SB 2373 - Enrolled version - Bill Text

S.B. No. 2373

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.

______________________________

______________________________

President of the Senate

Speaker of the House

I hereby certify that S.B. No. 2373 passed the Senate on

May 8, 2025, by the following vote: Yeas 31, Nays 0; and that the

Senate concurred in House amendment on May 31, 2025, by the

following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 2373 passed the House, with

amendment, on May 28, 2025, by the following vote: Yeas 138,

Nays 0, two present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor