Senate File 266 - Introduced SENATE FILE 266 BY WEBSTER A BILL FOR An Act relating to theft, forgery, and fraud involving a gift 1 card, and providing penalties. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2221XS (3) 91 as/js
S.F. 266 Section 1. NEW SECTION . 714.2D Crimes involving gift cards. 1 1. As used in this section, unless the context otherwise 2 requires: 3 a. “Cardholder” means any person in possession of a physical 4 or digital gift card issued through a purchase by the person, 5 or received by the person from a willing party. 6 b. “Card issuer” means any person that issues a gift card or 7 the agent of a gift card issuer. 8 c. “Gift card” means a physical or digital card, code, 9 or device that is issued to a consumer on a prepaid basis 10 primarily for personal, family, or household purposes in 11 a specified amount, regardless of whether that amount may 12 be increased or reloaded in exchange for payment, and is 13 redeemable upon presentation by a consumer either at a single 14 merchant, a group of affiliated merchants, or at multiple 15 unaffiliated merchants for goods or services within the payment 16 card network. 17 d. “Gift card redemption information” means information 18 unique to each gift card that allows the cardholder to access, 19 transfer, or spend the funds on that gift card. 20 e. “Gift card seller” means a merchant that is engaged in 21 the business of selling gift cards to consumers. 22 f. “Value” means the greatest amount of economic loss the 23 owner of the property might reasonably suffer including, in the 24 case of a gift card, the full monetary face value or potential 25 value for variable-load gift cards. 26 2. a. Any person who, with intent to defraud, acquires 27 or retains possession of a gift card or gift card redemption 28 information without the consent of the cardholder, card 29 issuer, or gift card seller commits theft and is guilty of an 30 aggravated misdemeanor. 31 b. Any person who, with intent to defraud, alters or tampers 32 with a gift card commits forgery and is guilty of an aggravated 33 misdemeanor. 34 c. Any person who, with intent to defraud, devises a scheme 35 -1- LSB 2221XS (3) 91 as/js 1/ 4
S.F. 266 to obtain a gift card or gift card redemption information 1 from a card holder, card issuer, or gift card seller by 2 means of false or fraudulent pretenses, representations, or 3 promises engages in a fraudulent practice and is guilty of the 4 following: 5 (1) A class “C” felony if the amount of money or value of 6 property or services involved exceeds five thousand dollars. 7 (2) A class “D” felony if the amount of money or value of 8 property or services involved exceeds one thousand dollars but 9 does not exceed five thousand dollars. 10 (3) An aggravated misdemeanor if the amount of money or 11 value of property or services involved exceeds five hundred 12 dollars but does not exceed one thousand dollars. 13 (4) A serious misdemeanor if the amount of money or value of 14 property or services involved is five hundred dollars or less. 15 d. Any person who, with intent to defraud, uses, for the 16 purpose of obtaining money, goods, services, or anything else 17 of value, a gift card or gift card redemption information that 18 has been obtained in violation of this section commits theft 19 and is guilty of the following: 20 (1) A class “C” felony if the value of the property stolen 21 exceeds five thousand dollars. 22 (2) A class “D” felony if the value of the property stolen 23 is more than one thousand dollars but not more than five 24 thousand dollars. 25 (3) An aggravated misdemeanor if the value of the property 26 stolen is more than five hundred dollars but not more than one 27 thousand dollars. 28 (4) A serious misdemeanor if the value of the property 29 stolen is five hundred dollars or less. 30 3. The value of the retail merchandise received by the 31 person in violation of this section within any six-month period 32 may be aggregated and the defendant charged accordingly in 33 applying the provisions of this section. 34 EXPLANATION 35 -2- LSB 2221XS (3) 91 as/js 2/ 4
S.F. 266 The inclusion of this explanation does not constitute agreement with 1 the explanation’s substance by the members of the general assembly. 2 This bill relates to theft, forgery, and fraud involving a 3 gift card. 4 The bill provides that any person who, with intent to 5 defraud, acquires or retains possession of a gift card or 6 gift card redemption information without the consent of the 7 cardholder, card issuer, or gift card seller commits theft and 8 is guilty of an aggravated misdemeanor. 9 The bill provides that any person who, with intent to 10 defraud, alters or tampers with a gift card commits forgery and 11 is guilty of an aggravated misdemeanor. 12 The bill provides that any person who, with intent to 13 defraud, devises a scheme to obtain a gift card or gift card 14 redemption information from a card holder, card issuer, or 15 gift card seller by means of false or fraudulent pretenses, 16 representations, or promises engages in a fraudulent practice 17 and is guilty as follows: a class “C” felony if the amount of 18 money or value of property or services involved exceeds $5,000; 19 a class “D” felony if the amount of money or value of property 20 or services involved exceeds $1,000 but does not exceed $5,000; 21 an aggravated misdemeanor if the amount of money or value of 22 property or services involved exceeds $500 but does not exceed 23 $1,000; and a serious misdemeanor if the amount of money or 24 value of property or services involved does not exceed $500. 25 The bill provides that any person who, with intent to 26 defraud, uses, for the purpose of obtaining money, goods, 27 services, or anything else of value, a gift card or gift card 28 redemption information that has been obtained in violation of 29 the bill commits theft and is guilty as follows: a class “C” 30 felony if the value of the property stolen exceeds $5,000; a 31 class “D” felony if the value of the property stolen is more 32 than $1,000 but not more than $5,000; an aggravated misdemeanor 33 if the value of the property stolen is more than $500 but 34 not more than $1,000; and a serious misdemeanor if the value 35 -3- LSB 2221XS (3) 91 as/js 3/ 4
S.F. 266 of the property stolen is $500 or less. The bill provides 1 that the value of the retail merchandise received by a person 2 in violation of the bill within any six-month period may be 3 aggregated and the defendant charged accordingly. 4 A serious misdemeanor is punishable by confinement for no 5 more than one year and a fine of at least $430 but not more than 6 $2,560. An aggravated misdemeanor is punishable by confinement 7 for no more than two years and a fine of at least $855 but 8 not more than $8,540. A class “D” felony is punishable by 9 confinement for no more than five years and a fine of at least 10 $1,025 but not more than $10,245. A class “C” felony is 11 punishable by confinement for no more than 10 years and a fine 12 of at least $1,370 but not more than $13,660. 13 The bill includes definitions. 14 -4- LSB 2221XS (3) 91 as/js 4/ 4