AUSTIN, Texas–The Texas Senate has passed a bill that seeks to combat card fraud caused by skimmers and sent it on to the governor for his signature.
HB 2945 by Rep. Mary Ann Perez (D-Houston) and Sen. Judith Zaffirini (D-Laredo) is one of a series of bills the Texas Credit Union Association said it has been supporting this session to combat credit and debit card skimmers.
The bill requires a merchant, upon discovery of a skimmer, to disable the fuel dispenser immediately, notify local law enforcement, take appropriate measures to protect the motor fuel dispenser from tampering until local law enforcement agency arrives, and report the discovery of a skimmer within 24 hours, the Cornerstone Credit Union League reported.
Merchants that fail to report skimmers or take corrective action as necessary to prevent further fraud risk civil penalties of a $5,000 maximum fine per violation. Serious infractions could result in a state jail felony, the league added.
Fraud Center Established
The bill also establishes a Payment Card Fraud Center that would serve as the state’s primary entity for the planning, coordination, and integration of law enforcement agencies to combat payment card fraud, including the use of skimmers.
“Before passage, Zaffirini offered a floor amendment to address appropriations for the Payment Card Fraud Center,” the CCUL said. “If the legislature does not appropriate money specifically for the center, the attorney general may use other funds available under his purview.”