According to the Legislative Budget Board (LBB), HB 4853 would have no significant fiscal impact at the state level. This suggests that any costs associated with implementing the provisions of the bill, such as the administrative duties assigned to the Financial Crimes Intelligence Center or enforcement of civil penalties, can be absorbed within existing resources or are expected to be minor in scope.

Additionally, the bill authorizes the imposition of civil penalties and creates new criminal offenses related to the use and mishandling of skimming devices. While this might suggest the potential for new revenue through fines or increased costs through enforcement or incarceration, the fiscal note indicates that any revenue or correctional implications would likely be insignificant. The offenses created include Class C misdemeanors (e.g., refusing inspections), Class B misdemeanors (reckless disposal of a skimmer), and third-degree felonies (intentional disposal during investigations), but the scale of anticipated prosecutions or incarcerations is not expected to materially affect correctional populations or budgets.

At the local government level, the bill is similarly expected to have no significant fiscal impact. The involvement of local law enforcement in investigations and coordination with the center is anticipated to be manageable within existing operational capacities. Local jurisdictions may be involved in initial skimmer detection, response, or prosecution efforts, but the costs associated with those responsibilities are not expected to rise to a level that would require additional appropriations or staffing adjustments.

HB 4853 offers a timely and well-calibrated response to the growing threat of payment card skimming across a range of electronic terminals, including point-of-sale (POS) systems, automated teller machines (ATMs), and virtual currency kiosks. By extending the authority of the Financial Crimes Intelligence Center (FCIC) to coordinate investigations and enforcement related to these devices, the bill aligns enforcement responsibilities with specialized expertise while ensuring swift action against organized fraud. The bill establishes clear reporting requirements, mandates terminal shutdown when skimmers are found, and provides law enforcement with the tools necessary to inspect and investigate potential threats.

Critically, the bill does not meaningfully expand the size or scope of government. It assigns enforcement duties to an existing entity—the FCIC—without creating new agencies, programs, or administrative overhead. Furthermore, the Legislative Budget Board reports no significant fiscal impact to the state or local governments. This means the bill does not raise taxes, require new appropriations, or grow the public sector workforce. From a taxpayer perspective, HB 4853 is fiscally neutral, reinforcing its alignment with principles of limited and efficient governance.

While the bill introduces new compliance responsibilities for businesses, primarily merchants and service technicians, these are narrowly applied and arise only in the event of skimmer detection. The obligations to disable terminals and notify authorities are both practical and proportional, reflecting a focused regulatory approach that avoids imposing ongoing or blanket mandates. There are no new licensing or routine inspection burdens, and the bill avoids overreach into otherwise lawful commercial activity. Thus, the regulatory burden is situational, limited in scope, and justified by the goal of protecting consumers from electronic payment fraud.

In sum, HB 4853 advances individual liberty and personal responsibility by protecting consumers, upholds private property rights through enhanced terminal security, and honors free enterprise by deterring criminal interference in financial transactions. It avoids unnecessary government growth and refrains from placing undue burdens on the taxpayer or the private sector. For these reasons, Texas Policy Research recommends that lawmakers vote YES on HB 4853.

• Individual Liberty: The bill directly protects consumers' individual liberty by safeguarding their personal financial information from criminal interception. Skimming devices represent a serious violation of individual privacy and property, often leading to identity theft and financial loss. By targeting the use and concealment of these devices and establishing clear investigation and enforcement protocols, the bill enhances the security of individuals' electronic transactions without interfering with their lawful choices or behavior.
• Personal Responsibility: The bill promotes personal responsibility by assigning clear duties to merchants and service technicians to report and respond to skimmer discoveries. Rather than overburdening businesses with preemptive regulation, the bill requires action only when a security threat is identified. This encourages responsible behavior and incentivizes timely cooperation with law enforcement, reinforcing a culture of accountability in the commercial space.
• Free Enterprise: The bill supports free enterprise by helping to maintain trust in electronic commerce. Skimming fraud undermines consumer confidence in the payment infrastructure that undergirds modern business. By deterring this form of theft and establishing protocols that secure transactions, the bill protects the integrity of free markets without placing unreasonable restrictions on commercial activity. The limited compliance obligations (e.g., disabling compromised terminals and reporting) are narrowly tailored and arise only in specific instances.
• Private Property Rights: Skimming activity violates private property rights by unlawfully extracting information from individuals and tampering with business-owned terminals. The bill helps protect these rights by mandating swift responses to such violations. Additionally, the bill is respectful of merchant property—it does not authorize general inspections without cause, and merchants retain ownership and control of their terminals unless a credible threat has been identified.
• Limited Government: The bill honors the principle of limited government by utilizing existing agencies and infrastructure, specifically, the Financial Crimes Intelligence Center, rather than creating new entities or imposing expansive regulatory frameworks. It applies enforcement only when necessary, focusing state intervention on the clear, limited goal of preventing financial crimes. The lack of significant fiscal impact or ongoing regulatory burden further reflects restraint in governance.

• SB 2371 (Same As)