Bill Text: NJ A5354 | 2022-2023 | Regular Session | Amended
Bill Title: Upgrades criminal penalties for use or possession of payment card scanning device; requires merchant to take reasonable safety measures to prevent scanning of payment card.
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Introduced - Dead) 2023-05-08 - Reported out of Asm. Comm. with Amendments, and Referred to Assembly Judiciary Committee [A5354 Detail]
Download: New_Jersey-2022-A5354-Amended.html
[First Reprint]
ASSEMBLY, No. 5354
STATE OF NEW JERSEY
220th LEGISLATURE
INTRODUCED MARCH 30, 2023
Sponsored by:
Assemblywoman CAROL A. MURPHY
District 7 (Burlington)
Assemblywoman ANGELA V. MCKNIGHT
District 31 (Hudson)
Assemblyman REGINALD W. ATKINS
District 20 (Union)
SYNOPSIS
Upgrades criminal penalties for use or possession of payment card scanning device; requires merchant to take reasonable safety measures to prevent scanning of payment card.
CURRENT VERSION OF TEXT
As reported by the Assembly Consumer Affairs Committee on May 8, 2023, with amendments.
An Act concerning scanning devices, amending P.L.2005, c.225 and supplementing P.L.1960, c.39 (C.56:8-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.2005, c.225 (C.2C:21-6.1) is amended to read as follows:
1. a. Definitions. As used in this section:
(1) "Merchant" means any owner or operator of any store or other retail mercantile establishment, or any agent, servant, employee, lessee, consignee, officer, director, franchisee or independent contractor of such owner or proprietor.
(2) "Payment card" means a credit card, charge card, debit card or any other card that is issued to an authorized card user and that allows the user to obtain, purchase, or receive goods, services, money or anything of value from a merchant.
(3) "Reencoder" means an electronic device that places encoded information from the magnetic strip or stripe of a payment card onto the magnetic strip or stripe of a different payment card or any electronic medium that allows a transaction to occur.
(4) "Scanning device" means a scanner, skimmer, reader or any other electronic device that is used to access, read, scan, obtain, memorize or store, temporarily or permanently, information encoded on the magnetic strip or stripe of a payment card.
b. It shall be 1[a crime of the third degree for a first offense and a crime of the second degree for a second or subsequent offense] unlawful1 for a person, with the intent to defraud an authorized user of a payment card, the issuer of the authorized user's payment card or a merchant, to use:
(1) a scanning device to access, read, obtain, memorize or store, temporarily or permanently, information encoded on the magnetic strip or stripe of a payment card, without the permission of the authorized user of the payment card; or
(2) a reencoder to place information encoded on the magnetic strip or stripe of a payment card onto the magnetic strip or stripe of a different card or any electronic medium that allows a transaction to occur without the permission of the authorized user of the card from which the information is being reencoded.
1An offense under this subsection shall be a crime of the third degree; provided, however, it shall be a crime of the second degree if a subsequent offense results in a theft of at least $50,000 or if the first offense and the subsequent offense result in a combined total theft of at least $50,000.1
c. It shall be a crime of the fourth degree for a first offense and a crime of the third degree for a second or subsequent offense for a person to knowingly possess with intent to commit a violation of paragraph (1) or (2) of subsection b. of this section any device, apparatus, equipment, software, article, material, good, property or supply that is specifically designed or adapted for use as or in a scanning device or reencoder.
(cf: P.L.2005, c.225, s.1)
2. (New section) a. As used in this section:
"Director" means the Director of the Division of Consumer Affairs.
"Merchant" means any owner or operator of any store or other retail mercantile establishment, or any agent, servant, employee, lessee, consignee, officer, director, franchisee, or independent contractor of such owner or proprietor.
"Payment Card" means a credit card, charge card, debit card, or any other card that is issued to an authorized card user and that allows the user to obtain, purchase, or receive goods, services, money, or anything of value from a merchant.
"Scanning device" means a scanner, skimmer, reader, or any other electronic device used to access, read, scan, obtain, memorize, or store, temporarily or permanently, information encoded on the magnetic strip or stripe of a payment card.
b. In accordance with rules and regulations adopted by the director pursuant to subsection c. of this section, a merchant that accepts payment cards in this State shall implement reasonable security measures to prevent the use of a scanning device at any payment terminal to access, read, obtain, memorize, or store, temporarily or permanently, information encoded on the magnetic strip or stripe of a consumer's payment card.
c. The director shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations necessary to effectuate the provisions of subsection b. of this section, which shall include, but not be limited to, the following security measures for merchants:
(1) the regular inspection of payment terminals;
(2) periodic training for employees on how to identify and prevent payment card scanning;
(3) the installation of security cameras or other applicable security devices; and
(4) the use of applicable antivirus or encryption software.
In addition, the director shall
provide direction and oversight to merchants on complying with the provisions
of this section and for the development and distribution of informational
materials regarding best practices that merchants shall implement to prevent
the use of scanning devices.
3. This act shall take effect on the first day of the seventh month after enactment, but the Director of the Division of Consumer Affairs may take any administrative action in advance of the effective date as may be necessary to implement the provisions of this act.
