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S1365................................................by JUDICIARY AND RULES
SCANNERS/REENCODERS - Amends and adds to existing law to prohibit the
possession and use of scanning devices to read, or reencoders to encode,
the magnetic strip or stripe of a financial transaction card without the
permission of the authorized user of the card and with the intent to
defraud the authorized user, the issuer of the card or a merchant; and to
provide for punishment.
02/04 Senate intro - 1st rdg - to printing
02/05 Rpt prt - to Jud
02/21 Rpt out - rec d/p - to 2nd rdg
02/22 2nd rdg - to 3rd rdg
02/27 3rd rdg - PASSED - 32-1-2
AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson,
Burtenshaw, Cameron, Darrington, Davis, Deide, Dunklin, Frasure,
Goedde, Hawkins, Hill, Ingram, Ipsen, Keough, King-Barrutia, Little,
Lodge, Marley, Noh, Richardson, Risch, Sandy, Schroeder, Sims,
Sorensen, Thorne, Wheeler, Williams
NAYS -- Stegner
Absent and excused -- Geddes, Stennett
Floor Sponsor - Richardson
Title apvd - to House
02/28 House intro - 1st rdg - to Jud
03/14 Rpt out - rec d/p - to 2nd rdg
Rls susp - PASSED - 62-2-6
AYES -- Barraclough, Barrett, Bedke, Bell, Black, Block, Boe, Bolz,
Bradford, Bruneel, Callister, Campbell, Clark, Collins, Crow, Cuddy,
Denney, Ellis, Ellsworth, Eskridge, Field(13), Gagner, Gould, Hadley,
Hammond, Harwood, Henbest, Higgins, Hornbeck, Jaquet, Jones, Kendell,
Kunz, Lake, Langford, Loertscher, Mader, Martinez, McKague, Meyer,
Moyle, Pearce, Pischner, Pomeroy, Raybould, Ridinger, Roberts,
Robison, Sali, Schaefer, Sellman, Shepherd, Smith(33), Smith(23),
Smylie, Stevenson, Tilman, Trail, Wheeler, Wood, Young, Mr. Speaker
NAYS -- Bieter, Montgomery
Absent and excused -- Aikele, Deal, Field(20), Kellogg, Mortensen,
Stone
Floor Sponsor - Hammond
Title apvd - to Senate
03/14 To enrol
03/15 Rpt enrol - Pres signed - Sp signed
03/18 To Governor
03/26 Governor signed
Session Law Chapter 289
Effective: 07/01/02
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE SENATE
SENATE BILL NO. 1365
BY JUDICIARY AND RULES COMMITTEE
1 AN ACT
2 RELATING TO THEFT; AMENDING SECTION 18-2408, IDAHO CODE, TO EXTEND A DESIG-
3 NATED PUNISHMENT TO THE PROHIBITED USE OF SCANNING DEVICES AND REENCODERS;
4 AND AMENDING CHAPTER 24, TITLE 18, IDAHO CODE, BY THE ADDITION OF A NEW
5 SECTION 18-2415, IDAHO CODE, TO DEFINE TERMS, TO PROHIBIT CERTAIN POSSES-
6 SION AND USE OF SCANNING DEVICES AND REENCODERS AND TO PROVIDE FOR PUNISH-
7 MENT.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Section 18-2408, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 18-2408. PUNISHMENT FOR THEFT. (1) Grand theft committed in a manner pre-
12 scribed in subsection (1)(a) of section 18-2407, Idaho Code, is a felony pun-
13 ishable by fine not exceeding ten thousand dollars ($10,000) or imprisonment
14 in the state prison for not less than one (1) year nor more than twenty (20)
15 years, or by both such fine and imprisonment.
16 (2) (a) Grand theft committed in a manner prescribed in subsection
17 (1)(b)1., 2., 3., 4., 5., 6., 8. or 9. of section 18-2407, Idaho Code, or
18 a felony committed in a manner prescribed in section 18-2415, Idaho Code,
19 is a felony punishable by a fine not exceeding five thousand dollars
20 ($5,000), or by imprisonment in the state prison for not less than one (1)
21 year nor more than fourteen (14) years, or by both such fine and imprison-
22 ment.
23 (b) Grand theft committed in a manner prescribed in subsection (1)(b)7.
24 of section 18-2407, Idaho Code, is a felony punishable by a fine of not
25 less than one thousand dollars ($1,000) nor more than five thousand dol-
26 lars ($5,000), and the minimum fine shall not be suspended or withheld, or
27 by imprisonment in the state prison for not less than one (1) year nor
28 more than fourteen (14) years, or by both such fine and imprisonment. In
29 addition, the court shall assess civil damages as provided in section
30 25-1910, Idaho Code.
31 (3) Petit theft is a misdemeanor punishable by a fine not exceeding one
32 thousand dollars ($1,000), or by imprisonment in the county jail not exceeding
33 one (1) year or by both.
34 SECTION 2. That Chapter 24, Title 18, Idaho Code, be, and the same is
35 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
36 ignated as Section 18-2415, Idaho Code, and to read as follows:
37 18-2415. SCANNING -- REENCODING. (1) As used in this section, the term:
38 (a) "Scanning device" means a scanner, reader, or any other electronic
39 device that is used to access, read, scan, obtain, memorize, or store,
40 temporarily or permanently, information encoded on the magnetic strip or
41 stripe of a payment card.
2
1 (b) "Reencoder" means an electronic device that places encoded informa-
2 tion from the magnetic strip or stripe of a payment card onto the magnetic
3 strip or stripe of a different payment card.
4 (c) "Financial transaction card" or "FTC" means any instrument or device
5 known as a credit card, credit plate, bank services card, banking card,
6 check guarantee card, debit card, telephone credit card or by any other
7 name issued by the issuer for the use of the card holder in obtaining
8 money, goods, services, or anything else of value on credit, or in certi-
9 fying or guaranteeing to a person or business the availability to the card
10 holder of the funds on deposit that are equal to or greater than the
11 amount necessary to honor a draft or check payable to the order of such a
12 person or business; or any instrument or device used in providing the card
13 holder access to a demand deposit account or a time deposit account for
14 the purpose of making deposits of money or checks therein, or withdrawing
15 funds in the form of money, money orders, or traveler's checks or other
16 representative of value therefrom or transferring funds from any demand
17 account or time deposit account to any credit card account in full or par-
18 tial satisfaction of any outstanding balance existing therein.
19 (d) "Merchant" is defined as an owner or operator of any retail mercan-
20 tile establishment or any agent, employee, lessee, consignee, officer,
21 director, franchisee, or independent contractor of such owner or operator.
22 A "merchant" means a person who receives from an authorized user of a pay-
23 ment card, or someone the person believes to be an authorized user, a pay-
24 ment card or information from a payment card, or what the person believes
25 to be a payment card or information from a payment card, as the instrument
26 for obtaining, purchasing or receiving goods, services, money or anything
27 else of value from the person.
28 (2) It is a felony for a person to use or possess with intent to use:
29 (a) A scanning device to access, read, obtain, memorize, or store, tempo-
30 rarily or permanently, information encoded on the magnetic strip or stripe
31 of a payment card without the permission of the authorized user of the
32 payment card and with the intent to defraud the authorized user, the
33 issuer of the authorized user's payment card, or a merchant.
34 (b) A reencoder to place information encoded on the magnetic strip or
35 stripe of a payment card onto the magnetic strip or stripe of a different
36 card without the permission of the authorized user of the card from which
37 the information is being reencoded and with the intent to defraud the
38 authorized user, the issuer of the authorized user's payment card, or a
39 merchant.
40 (3) Any person who commits a violation pursuant to this section shall be
41 punished pursuant to the provisions of section 18-2408(2)(a), Idaho Code.
STATEMENT OF PURPOSE
RS 11774C1
This legislation adds a new section to Chapter 24, Title 18, Idaho
Code, relating to theft, to prohibit and make it a felony for certain
uses of scanning devices and reencoders - a type of fraud that is
growing in frequency and sophistication.
There has been an increase in fraudulent credit card use committed
on business. One of the reasons for the growing frequency is because
of the lessened threat of punishment. Credit card “skimming” provides
a low risk with high rewards. An increasing number of the subjects
involved in this type of credit card fraud offenses are very
sophisticated and are “professionals” who travel city-to-city and
state-to-state committing these crimes. The Secret Service has stated
that credit card skimming has escalated to account for 25 percent of
all fraud involving high-tech devices today, compared to only 2 or
3 percent just a few years ago. “Skimming” of credit cards is said
to be the fastest-growing form of credit card fraud in the United
States today.
FISCAL IMPACT
There will be no impact on the General Fund, and no additional cost
to the state or local governments.
CONTACT: Pam Eaton
Idaho Retailers Association
(208) -342-0010
STATEMENT OF PURPOSE/FISCAL NOTE S 1365