Bill Text: IA SSB3024 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act relating to the criminal offenses of the illegal use of a scanning device or encoding machine and criminal mischief in the third degree, and providing penalties.
Spectrum: Committee Bill
Status: (N/A - Dead) 2018-01-17 - Subcommittee: Zaun, Schultz, and Kinney. [SSB3024 Detail]
Download: Iowa-2017-SSB3024-Introduced.html
Senate
Study
Bill
3024
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
JUDICIARY
BILL
BY
CHAIRPERSON
ZAUN)
A
BILL
FOR
An
Act
relating
to
the
criminal
offenses
of
the
illegal
use
of
1
a
scanning
device
or
encoding
machine
and
criminal
mischief
2
in
the
third
degree,
and
providing
penalties.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
715A.10,
Code
2018,
is
amended
to
read
1
as
follows:
2
715A.10
Illegal
use
of
scanning
device
or
reencoder
encoding
3
machine
.
4
1.
A
person
commits
a
class
“D”
felony
if
the
person
does
5
any
of
the
following:
6
a.
Uses
Directly
or
indirectly
uses
a
scanning
device
7
to
access,
read,
obtain,
memorize,
or
store,
temporarily
8
or
permanently,
information
encoded
on
the
magnetic
strip
9
or
stripe
of
a
payment
card
without
the
permission
of
the
10
authorized
user
of
the
payment
card,
and
with
the
intent
to
11
defraud
the
authorized
user,
the
issuer
of
the
authorized
12
user’s
payment
card,
or
a
merchant.
13
b.
Possesses
a
scanning
device
with
the
intent
to
obtain
14
information
encoded
on
a
payment
card
without
the
permission
15
of
the
authorized
user
of
the
payment
card,
the
issuer
of
the
16
authorized
user’s
payment
card,
or
a
merchant,
or
possesses
a
17
scanning
device
with
knowledge
that
a
person
other
than
the
18
authorized
user,
the
issuer
of
the
authorized
user’s
payment
19
card,
or
a
merchant
intends
to
use
the
scanning
device
to
20
obtain
information
encoded
on
a
payment
card
without
the
21
permission
of
the
authorized
user,
the
issuer
of
the
authorized
22
user’s
payment
card,
or
a
merchant.
23
b.
c.
Uses
a
reencoder
Directly
or
indirectly
uses
an
24
encoding
machine
to
place
information
encoded
on
the
magnetic
25
strip
or
stripe
of
a
payment
card
onto
the
magnetic
strip
26
or
stripe
of
a
different
payment
card
without
the
permission
27
of
the
authorized
user
of
the
payment
card
from
which
the
28
information
is
being
reencoded
was
obtained
,
and
with
the
29
intent
to
defraud
the
authorized
user,
the
issuer
of
the
30
authorized
user’s
payment
card,
or
a
merchant.
31
2.
A
second
or
subsequent
violation
of
this
section
is
a
32
class
“C”
felony.
33
3.
As
used
in
this
section
:
34
a.
“Encoding
machine”
means
an
electronic
device
that
is
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_____
used
to
encode
information
onto
a
payment
card.
1
a.
b.
“Merchant”
means
an
owner
or
operator
of
a
retail
2
mercantile
establishment
or
an
agent,
employee,
lessee,
3
consignee,
officer,
director,
franchisee,
or
independent
4
contractor
of
such
owner
or
operator.
A
“merchant”
also
means
5
includes
an
establishing
financial
institution
referred
to
6
in
section
527.5,
a
person
who
receives
from
an
authorized
7
user
of
a
payment
card,
or
someone
the
person
believes
to
8
be
an
authorized
user,
a
payment
card
or
information
from
a
9
payment
card,
or
what
the
person
believes
to
be
a
payment
card
10
or
information
from
a
payment
card,
as
the
instrument
for
11
obtaining,
purchasing,
or
receiving
goods,
services,
money,
or
12
anything
else
of
value
from
the
person.
13
b.
c.
“Payment
card”
means
a
credit
card,
charge
card,
14
debit
card,
access
device
as
defined
in
section
527.2,
or
15
any
other
card
that
is
issued
to
an
authorized
card
user
and
16
that
allows
the
user
to
obtain,
purchase,
or
receive
goods,
17
services,
money,
or
anything
else
of
value
from
a
merchant.
18
c.
“Reencoder”
means
an
electronic
device
that
places
19
encoded
information
from
the
magnetic
strip
or
stripe
of
a
20
payment
card
onto
the
magnetic
strip
or
stripe
of
a
different
21
payment
card.
22
d.
“Scanning
device”
means
a
scanner,
reader,
wireless
23
access
device,
radio
frequency
identification
scanner,
an
24
electronic
device
that
utilizes
near
field
communications
25
technology,
or
any
other
electronic
device
that
is
used
to
26
access,
read,
scan,
obtain,
memorize,
or
store,
temporarily
27
or
permanently,
information
encoded
on
the
magnetic
strip
or
28
stripe
of
a
payment
card.
29
Sec.
2.
Section
716.5,
subsection
1,
Code
2018,
is
amended
30
by
adding
the
following
new
paragraph:
31
NEW
PARAGRAPH
.
f.
The
property
has
the
ability
to
process
a
32
payment
card
as
defined
in
section
715A.10.
33
EXPLANATION
34
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
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the
explanation’s
substance
by
the
members
of
the
general
assembly.
1
This
bill
relates
to
the
illegal
use
of
a
scanning
device
or
2
encoding
machine.
3
ILLEGAL
USE
OF
SCANNING
DEVICE
OR
ENCODING
MACHINE.
The
bill
4
replaces
the
term
“reencoder”
with
the
term
“encoding
machine”.
5
The
bill
defines
“encoding
machine”
to
mean
an
electronic
6
device
that
is
used
to
encode
information
to
a
payment
card.
7
The
bill
also
expands
the
definition
of
“merchant”
to
8
include
an
establishing
financial
institution
referred
to
in
9
Code
section
524.5.
10
The
bill
modifies
the
definition
of
“payment
card”
to
11
include
an
access
device
as
defined
in
Code
section
527.2.
12
The
bill
also
modifies
the
term
“scanning
device”
to
include
13
a
wireless
access
device,
a
radio
frequency
identification
14
scanner,
and
an
electronic
device
that
utilizes
near
field
15
communications
technology.
16
A
person
commits
a
class
“D”
felony
under
the
bill
if
the
17
person
directly
or
indirectly
uses
a
scanning
device
to
access,
18
read,
obtain,
memorize,
or
store,
temporarily
or
permanently,
19
information
encoded
on
a
payment
card
without
the
permission
20
of
the
authorized
user,
the
issuer
of
the
authorized
user’s
21
payment
card,
or
a
merchant.
In
order
to
commit
this
offense
22
currently,
a
person
must
use
a
scanning
device
to
access,
23
read,
obtain,
memorize,
or
store,
temporarily
or
permanently,
24
information
encoded
on
the
magnetic
strip
or
stripe
of
a
25
payment
card
without
the
permission
of
the
authorized
user
of
26
the
payment
card,
and
with
the
intent
to
defraud
the
authorized
27
user,
the
issuer
of
the
authorized
user’s
payment
card,
or
a
28
merchant.
29
The
bill
creates
a
new
criminal
offense.
Under
the
bill,
a
30
person
shall
not
possess
a
scanning
device
with
the
intent
to
31
obtain
information
encoded
on
a
payment
card
without
permission
32
of
the
authorized
user,
the
issuer
of
the
authorized
user’s
33
payment
card,
or
a
merchant,
or
possess
a
scanning
device
with
34
knowledge
that
a
person
other
than
the
authorized
user,
the
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issuer
of
the
authorized
user’s
payment
card,
or
a
merchant
1
intends
to
use
the
scanning
device
to
obtain
information
2
encoded
on
a
payment
card
without
permission
from
the
3
authorized
user,
the
issuer
of
the
authorized
user’s
payment
4
card,
or
a
merchant.
A
person
who
violates
this
provision
5
commits
a
class
“D”
felony.
6
A
person
commits
a
class
“D”
felony
under
the
bill
if
the
7
person
directly
or
indirectly
uses
an
encoding
machine
to
place
8
information
encoded
on
a
payment
card
onto
a
different
payment
9
card
without
the
permission
of
the
authorized
user,
the
issuer
10
of
the
authorized
user’s
payment
card,
or
a
merchant.
In
order
11
to
commit
this
offense
currently,
a
person
must
use
a
reencoder
12
to
place
information
encoded
on
the
magnetic
strip
or
stripe
of
13
a
payment
card
onto
the
magnetic
strip
or
stripe
of
a
different
14
card
without
the
permission
of
the
authorized
user
of
the
15
card
from
which
the
information
is
being
reencoded,
and
with
16
the
intent
to
defraud
the
authorized
user,
the
issuer
of
the
17
authorized
user’s
payment
card,
or
a
merchant.
18
A
class
“D”
felony
is
punishable
by
confinement
for
no
more
19
than
five
years
and
a
fine
of
at
least
$750
but
not
more
than
20
$7,500.
21
CRIMINAL
MISCHIEF
IN
THE
THIRD
DEGREE.
If
a
person
22
intentionally
damages,
defaces,
alters,
or
destroys
property
23
that
has
the
ability
to
process
a
payment
card
as
defined
in
24
Code
section
715A.10
in
the
bill,
with
no
right
to
do
such
25
an
act,
that
person
commits
criminal
mischief
in
the
third
26
degree.
Criminal
mischief
in
the
third
degree
is
an
aggravated
27
misdemeanor.
28
An
aggravated
misdemeanor
is
punishable
by
confinement
for
29
no
more
than
two
years
and
a
fine
of
at
least
$625
but
not
more
30
than
$6,250.
31
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