S.B. No. 2371 introduces new regulations concerning the presence of skimmers on electronic terminals, such as automated teller machines and point-of-sale devices, by adding Chapter 607A to the Business & Commerce Code. The bill defines key terms related to electronic transactions and establishes the Texas Commission of Licensing and Regulation as the authority responsible for administering and enforcing these new provisions. It mandates that service technicians and merchants must report the discovery of skimmers to the financial crimes intelligence center and take necessary actions to disable affected terminals and notify law enforcement.

Additionally, the bill establishes civil penalties for violations of its provisions, with fines not exceeding $5,000 per day for each infraction, and allows the attorney general to pursue legal action to collect these penalties. It also creates criminal offenses related to the refusal to allow inspections of electronic terminals and the negligent or intentional disposal of skimmers, with varying degrees of misdemeanors and felonies assigned based on the severity of the offense. The act is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that threshold is not met.

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